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Balanced Fund (WBAIX)

Fund Facts

  • Ticker
    WBAIX
  • CUSIP
    94904P815
  • Fund
    Inception
    10/01/2003
  • Class
    Inception
    03/29/2019
  • Fund
    Assets
    $195 Million
    as of 06/30/2022
  • Dividend
    Frequency
    Semi-annually
  • Portfolio
    Manager(s)
      Brad Hinton, CFA
    Nolan Anderson

Investment Approach

The investment objectives of the Balanced Fund are long-term capital appreciation, capital preservation and current income.

Strategy and Process

Core conservative allocation

The fund combines our equity and fixed income expertise within a single portfolio.

We build the portfolio one security at a time using a defined asset allocation and concentrating in our best equity ideas.

Value driven, private buyer mindset

The value of a business is a function of the cash flows it will generate over time.

We think about and value a business like a private buyer and look to buy shares at a discount to our calculation of intrinsic value.

Higher-quality fixed income focus

Credit investing is asymmetric in nature.

We focus on downside risk management and portfolio income generated per unit of risk.

Performance

Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their
original cost.

Historical Returns
as of 08/31/2022

Cumulative Returns

Average Annual Total Returns

YTD 1 MO 1 YR 3 YR 5 YR10 YR Since Fund
Inception
10/1/2003
Balanced Fund -10.05% -3.05% -8.36% 4.72% 5.45% 6.07% 5.54%
Morningstar Mod Conservative Target Risk Index -12.89% -2.88% -12.74% 2.72% 3.69% 4.65% 5.46%

Growth of a $10,000 Investment Since Inception
as of 08/31/2022

Summary of Returns

Year Balanced Fund Morningstar Mod Conservative Target Risk IndexRelative Results
2021 13.27% 6.36% 6.91%
2020 8.33% 11.86% -3.53%
2019 17.98% 15.25% 2.73%
2018 -1.78% -2.87% 1.09%
2017 11.15% 10.86% 0.29%
2016 4.07% 6.66% -2.59%
2015 -1.11% -1.03% -0.08%
2014 3.79% 4.30% -0.51%
2013 15.46% 8.83% 6.63%
2012 10.91% 9.66% 1.25%
2011 2.27% 2.60% -0.33%
2010 15.66% 9.65% 6.01%
2009 28.77% 15.31% 13.46%
2008 -26.82% -13.06% -13.76%
2007 -5.26% 8.01% -13.27%
2006 14.33% 9.72% 4.61%
2005 1.73% 4.93% -3.20%
2004 11.84% 8.95% 2.89%
2003 (10/01/2003) 3.78% 15.25% -11.47%
Swipe/scroll vertically for full history

Since Inception Returns

Since Fund Inception (10/1/2003) Balanced Fund Morningstar Mod Conservative Target Risk IndexRelative Results
Cumulative Return 177.19% 173.62% 3.57%
Average Annual Return 5.54% 5.46% 0.08%

Yields
as of 08/31/2022

Dividend Yield 3.15%
30-Day SEC Yield (Subsidized) 1.61%
30-Day SEC Yield (Unubsidized) 1.60%

Morningstar Ratings™
as of 08/31/2022

Rating / Number of funds in the category

Category: Allocation--30% to 50% Equity
3 YR 5 YR 10 YR Overall Rating

out of 427

out of 392

out of 285

out of 427
Morningstar Ratings are based on risk–adjusted returns.

Morningstar Rankings™
as of 08/31/2022

Ranking / Number of funds in the category / Percentile Ranking

Category: Allocation--30% to 50% Equity
1 YR 3 YR 5 YR 10 YR
62 / 465
9
13 / 427
4
n/a n/a
Morningstar Rankings are based on total returns.

Fees & Expenses
as of most recent prospectus dated 07/31/2021

Gross Expense Ratio 0.79%
Net Expense Ratio 0.70%
Contractual Expiration Date 7/31/2022
Distribution and/or service fee (12b-1) Fees None
Sales Charge None
Redemption Fee None

Volatility Measures
as of 06/30/2022

Versus Morningstar Mod Conservative Target Risk Index 5 Year
R-Squared 87.74
Beta 0.93
Alpha 2.10
Upside Capture Ratio 109.90
Downside Capture Ratio 92.18
Standard Deviation 7.57
Sharpe Ratio 0.62

Source: Morningstar Direct

Portfolio

Asset Allocation
% of Net Assets as of 06/30/2022

Sector Allocation
% of Common Stock as of 06/30/2022

Information Technology 28.9%
Financials 23.5%
Health Care 14.5%
Materials 10.4%
Communication Services 10.4%
Industrials 10.2%
Consumer Staples 2.1%

Versus Morningstar Moderately Conservative Target Risk Index

Top Ten Equity Holdings
% of Net Assets as of 06/30/2022

Microsoft Corp. 2.3%
Danaher Corp. 2.1%
Berkshire Hathaway, Inc. 2.1%
Thermo Fisher Scientific, Inc. 2.0%
Analog Devices, Inc. 2.0%
Aon plc 2.0%
Alphabet, Inc. 1.9%
Markel Corp. 1.9%
Laboratory Corp. of America Holdings 1.9%
Visa, Inc. 1.7%
% of Net Assets in Top Holdings 19.9%
View Full Portfolio Holdings as of 06/30/2022 (PDF)
Download Portfolio Holdings as of 06/30/2022 (CSV)

Credit Quality
% of Portfolio as of 06/30/2022

U.S. Treasury 61.2
U.S. Government Agency Mortgage Related Securities (b) 1.9
AAA 14.8
AA 3.3
A 1.6
BBB 2.4
BB 1.8
B 0.0
CCC 0.0
Non-Rated 1.6
Cash Equivalents 11.4

Capitalization
% of Common Stock as of 06/30/2022

> $50 Billion 71.2%
$25 - $50 Billion 3.0%
$10 - $25 Billion 24.7%
$2.5 - $10 Billion 0.0%
< $2.5 Billion 1.0%
Weighted Average Market Cap $308.2 Billion

Portfolio Characteristics
as of 06/30/2022

Number of Companies (Equity) 29
Number of Fixed Income Issuers (Including U.S. Treasury Bills, if applicable) 61
Annual Turnover*
27%
5-Year Avg. Annual Turnover* 32%

Fixed Income Characteristics
as of 06/30/2022

Average Maturity 2.4 years
Average Effective Maturity 2.6 years
Average Duration 2 years
Average Effective Duration 1.8 years
Average Coupon 1.9
Yield to Worst 3.3
Yield to Maturity 3.4

Maturity Distribution
% of Portfolio as of 06/30/2022

Cash Equivalents 5.2
Less than 1 Year 28.3
1 - 3 Years 33.1
3 - 5 Years 22.4
5 - 7 Years 6.3
7 - 10 Years 1.8
10 Years or more 2.8

Duration Distribution
% of Portfolio as of 06/30/2022

0 - 1 Years 41.0
1 - 3 Years 35.4
3 - 5 Years 20.3
5 - 7 Years 3.3
7 - 10 Years 0.0
10 Years or more 0.0

Morningstar Stock Stylebox
as of 6/30/2022

Value
Blend
Growth
Large
n/a
n/a
n/a
Medium
n/a
n/a
n/a
Small
n/a
n/a
n/a
 

Weight %

  • 50+
  • 25-49
  • 10-24
  • 0-9
  • 50+
  • 25-49
  • 10-24
  • 0-9

Distributions

RECORD DATE EX & PAY DATE Income Capital Gain Short-Term Capital Gain Long-Term Total Distribution Reinvestment NAV
06/14/22 06/15/22 0.0548 n/a n/a 0.0548 15.31
12/14/21 12/15/21 0.0255 0.0234 0.3868 0.4357 17.26
06/15/21 06/16/21 0.0282 n/a n/a 0.0282 16.80
12/15/20 12/16/20 0.0757 0.0200 0.0300 0.1257 15.56
06/16/20 06/17/20 0.0340 0.0034 0.0337 0.0711 14.54
12/16/19 12/17/19 0.1181 0.0666 0.0653 0.2500 14.65
06/17/19 06/18/19 0.0322 n/a n/a 0.0322 14.19

Literature

Fact Sheet
(06/22)
Commentary
(06/22)
Summary Prospectus
(07/22)
Prospectus
(07/22)
SAI
(07/22)
Annual Report*
(03/22)
Portfolio Holdings
(06/22)
Semi-Annual Report*
(09/21)
Portfolio Holdings
(12/21)

Risks

An investment in the Fund involves certain risks, including, among others, the following:

Market Risk
As with any mutual fund, investment return and principal value will fluctuate, depending on general market conditions and other factors.  Market risk includes political, regulatory, economic, social and health risks (including the risks presented by the spread of infectious diseases such as the COVID-19 pandemic) which can lead to increased market volatility and negative impacts on local and global financial markets, and the duration and severity of the impact of these risks on markets cannot be reasonably estimated.

Value Investing Risk
Value investors seek to invest in companies whose stock prices are low in relation to their estimated worth or future prospects. Undervalued securities are, by definition, out of favor with investors, and there is no way to predict when, if ever, the securities may return to favor. 

Concentration Risk
The risk that the Fund›s performance may be hurt disproportionately by the poor performance of relatively few stocks. The fund tends to invest a high percentage of assets in its largest holdings.

Large Company Risk
Large companies tend to have less overall volatility, compared to mid-size and small companies; however, large companies may not be able to attain the high growth rates of successful mid-size or small companies.  In addition, large companies may be less capable of responding to competitive challenges and disruptive changes.

Mid-Size Company Risk
Mid-size companies may be more volatile and less liquid, compared to large companies, due to the mid-size companies› limited product lines, markets, financing sources and management depth.  Also, mid-size companies may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Small Company Risk
Small companies may be more volatile and less liquid, compared to large and mid-size companies, due to the small companies› size, limited product lines, markets, financing sources and management depth.  Also, small companies may be affected to a greater extent by the underperformance of a sector or changing market conditions.

Non-U.S. Securities Risk
The Fund may invest in securities issued by non-U.S. issuers, which securities may be denominated in U.S. dollars or foreign currencies. Investments in non-U.S. securities may involve additional risks including exchange rate fluctuation, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets.

Interest Rate Risk
Debt securities are subject to interest rate risk because the prices of debt securities tend to move in the opposite direction of interest rates.  When interest rates rise, debt security prices fall.  When interest rates fall, debt security prices rise.  Changing interest rates may have sudden and unpredictable effects in the markets and on the Fund›s investments.  In general, debt securities with longer maturities are more sensitive to changes in interest rates.

Credit Risk
The risk that the issuer of a debt security will fail to pay interest or principal in a timely manner or that negative perceptions of the issuer's ability to make such payments will cause the price of that security to fall. 

Non-Investment Grade Debt Securities Risk
Non-investment grade debt securities (commonly referred to as "high yield" or "junk" bonds) are speculative and involve a greater risk of default and price change than investment grade debt securities due to the issuer’s creditworthiness. The market prices of these securities may fluctuate more than the market prices of investment grade debt securities and may decline significantly in response to adverse economic changes or issuer developments.

Call Risk
Certain debt securities may be called (redeemed) at the option of the issuer at a specified price before reaching their stated maturity date. Call risk is the risk, especially during periods of falling interest rates, that an issuer will call or repay a higher-yielding bond debt security before its maturity date, forcing the Fund to reinvest in bonds with lower interest rates than the original obligations.

Liquidity Risk
Securities purchased by the Fund that are liquid at the time of purchase may subsequently become illiquid due to, among other things, events relating to the issuer of the securities (e.g., changes to the market's perception of the credit quality of the issuer), market events, economic conditions, investor perceptions or lack of market participants. The Fund may be unable to sell illiquid securities on short notice or only at a price below current value.

Mortgage-Backed (and Other Asset-Backed) Securities Risk
Mortgage-backed securities (and other asset-backed securities) are generally structured for the securities holders to receive periodic payments as the securities issuer receives payments on the mortgages (or loans) in an underlying asset pool. Sometimes these securities are issued in separate tranches, which can mean the securities holders of one tranche receive payment in full before the securities holders of another tranche receive payments. Also sometimes credit support is provided for these securities, which can mean the securities issuer, an affiliated party or a third party provides additional assets, or makes additional promises, with respect to payment to the securities holders. Risks to the securities holders can include (i) the underlying asset pool may not pay as expected (which could mean sooner or later than expected), (ii) the securities issuer may have insufficient cash to make payment on the securities generally, or on certain tranches of the securities and (iii) the credit support may be insufficient to make payment on the securities.

Government-Sponsored Enterprises Risk
Obligations of U.S. Government agencies and authorities (such as Fannie Mae and Freddie Mac) are supported by varying degrees of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to do so. In addition, the value of U.S. Government securities may be affected by changes in the credit rating of the U.S. Government.

Derivatives Risk
Derivatives are instruments, such as futures and forward contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives may carry more risk than other types of investments. Derivatives are subject to a number of risks including counterparty, liquidity, interest rate, market, credit and management risks, and the risk of improper valuation. Changes in the value of a derivative may not correlate perfectly with the underlying asset, rate or index, and in some cases the Fund could lose more than the principal amount invested.  The use of some derivatives requires the Fund to segregate liquid assets to cover the Fund›s obligations under the derivative agreements or as required by regulations.  

Failure to Meet Investment Objective
There can be no assurance that the Fund will meet its investment objective.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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