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Balanced Fund (WBALX)

Fund Facts

  • Ticker
    WBALX
  • CUSIP
    94904P104
  • Fund
    Inception
    10/01/2003
  • Class
    Inception
    10/01/2003
  • Net
    Assets
    $186 Million
    as of 09/30/2020
  • Dividend
    Frequency
    Semi-annually
  • Portfolio
    Manager(s)
      Bradley Hinton, CFA

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 11/30/2020

Cumulative Returns

Average Annual Total Returns

YTD 1 MO 1 YR 3 YR 5 YR10 YR Since Fund
Inception
10/1/2003
Balanced Fund 6.67% 3.99% 7.65% 7.48% 7.02% 7.20% 5.90%
Morningstar Moderately Conservative Target Risk Index 9.49% 5.98% 11.10% 7.32% 7.51% 6.52% 6.38%

Growth of a $10,000 Investment Since Inception
as of 11/30/2020

Summary of Returns

Year Balanced Fund Morningstar Moderately Conservative Target Risk IndexRelative Results
2019 17.94% 15.25% 2.69%
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% 5.94% -2.16%
Swipe/scroll vertically for full history

Since Inception Returns

Since Fund Inception (10/1/2003) Balanced Fund Morningstar Moderately Conservative Target Risk IndexRelative Results
Cumulative Return 167.82% 189.05% -21.23%
Average Annual Return 5.90% 6.38% -0.48%

Yields
as of 11/30/2020

Distribution Yield 1.93%
30-Day SEC Yield (Subsidized) -0.04%
30-Day SEC Yield (Unubsidized) -0.26%

Morningstar Ratings™
as of 09/30/2020

Rating / Number of funds in the category

Category 3 YR 5 YR 10 YR Overall Rating
Allocation--30% to 50% Equity      
out of 514
     
out of 450
     
out of 285
     
out of 514
Morningstar Ratings are based on risk–adjusted returns.

Morningstar Rankings™
as of 09/30/2020

Ranking / Number of funds in the category / Percentile Ranking

Category 1 YR 3 YR 5 YR 10 YR
Allocation--30% to 50% Equity 213 / 547
40
24 / 514
7
55 / 450
13
30 / 285
11
Morningstar Rankings are based on total returns.

Fees & Expenses
as of most recent prospectus dated 07/31/2020

Gross Expense Ratio 1.14%
Net Expense Ratio 0.85%
Contractual Expiration Date 7/31/2021
Distribution and/or service fee (12b-1) Fees None
Sales Charge None
Redemption Fee None

Volatility Measures
as of 09/30/2020

Versus Morningstar Moderately Conservative Target Risk Index 3 Year 5 Year10 Year
R-Squared 90.7 87.181.5
Beta 0.99 0.991.04
Alpha 0.67 0.410.82
Upside Capture Ratio 105.7 100.5105.7
Downside Capture Ratio 101.8 94.692.8
Standard Deviation 7.5 6.56.5
Sharpe Ratio 0.69 0.941.00

Source: Morningstar Direct

Portfolio

Asset Allocation
% of Net Assets as of 09/30/2020

Sector Allocation
% of Common Stock as of 09/30/2020

Information Technology 29.2%
Financials 24.6%
Health Care 14.5%
Communication Services 11.3%
Materials 9.5%
Industrials 7.6%
Consumer Staples 3.3%

Top 10 Holdings
% of Net Assets as of 09/30/2020

Thermo Fisher Scientific Inc. 2.4%
Berkshire Hathaway Inc. - Class B 2.1%
Aon plc - Class A 2.0%
Microsoft Corp. 2.0%
Alphabet, Inc. - Class C 1.7%
Danaher Corp. 1.7%
Laboratory Corp. of America Holdings 1.7%
Mastercard Inc. - Class A 1.7%
Charter Communications, Inc. - Class A 1.7%
Vulcan Materials Co. 1.6%
% of Net Assets in Top Holdings 18.6%
View Full Portfolio Holdings as of 09/30/2020

Credit Quality
% of Portfolio as of 09/30/2020

U.S. Treasury 45.3
U.S. Government Agency Mortgage Related Securities (b) 4.2
AAA 10.6
AA 3.0
A 4.6
BBB 6.5
BB 2.7
B 0.0
CCC 0.0
Non-Rated 1.7
Cash Equivalents 21.4

Capitalization
% of Common Stock as of 09/30/2020

> $50 Billion 65.3%
$25 - $50 Billion 14.2%
$10 - $25 Billion 17.2%
$2.5 - $10 Billion 2.1%
< $2.5 Billion 1.2%
Weighted Average Market Cap $252.3 Billion

Portfolio Characteristics
as of 09/30/2020

Number of Companies (Equity) 29
Yield To Worst 0.6%
Yield To Maturity 0.7%
Number of Fixed Income Issuers (Including U.S. Treasury Bills, if applicable) 46
Annual Turnover*
32%
5-Year Avg. Annual Turnover* 33%

*as of most recent Annual Report

Fixed Income Characteristics
as of 09/30/2020

Average Maturity 1.4 years
Average Effective Maturity 1.4 years
Average Duration 1.3 years
Average Effective Duration 1.2 years
Average Coupon 1.9

Maturity Distribution
% of Portfolio as of 09/30/2020

Cash Equivalents 21.4
Less than 1 Year 31.2
1 - 3 Years 35.9
3 - 5 Years 8.8
5 - 7 Years 0.0
7 - 10 Years 0.0
10 Years or more 2.7

Duration Distribution
% of Portfolio as of 09/30/2020

0 - 1 Years 53.1
1 - 3 Years 35.4
3 - 5 Years 8.8
5 - 7 Years 2.7
7 - 10 Years 0.0
10 Years or more 0.0

Morningstar Stock Stylebox
as of 6/30/2020

Value
Blend
Growth
Large
12
41
23
Medium
4
5
13
Small
1
0
0
 

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
06/16/20 06/17/20 0.0200 0.0034 0.0337 0.0571 14.54
12/16/19 12/17/19 0.1131 0.0666 0.0653 0.2450 14.65
06/17/19 06/18/19 0.0322 n/a n/a 0.0322 14.19
12/26/18 12/27/18 0.1030 n/a 0.4515 0.5545 12.66
06/26/18 06/27/18 0.0259 0.0304 0.6325 0.6888 13.62
12/26/17 12/27/17 0.0530 0.0186 0.1660 0.2376 14.19
06/27/17 06/28/17 n/a 0.0258 0.1232 0.1490 13.89
12/27/16 12/28/16 0.0177 0.1087 0.1859 0.3123 13.13
06/27/16 06/28/16 0.0169 n/a 0.0985 0.1154 13.16
12/28/15 12/29/15 n/a n/a 0.2040 0.2040 13.08
06/25/15 06/26/15 n/a n/a 0.5129 0.5129 13.50
12/26/14 12/29/14 n/a n/a 0.4120 0.4120 13.97
06/25/14 06/26/14 n/a n/a 0.2586 0.2586 14.12
12/26/13 12/27/13 n/a n/a 0.4452 0.4452 13.98
06/26/13 06/27/13 0.0026 n/a 0.2264 0.2290 13.62
12/26/12 12/27/12 0.0370 n/a n/a 0.0370 12.72
06/27/12 06/28/12 0.0104 n/a n/a 0.0104 12.05
12/27/11 12/28/11 0.0500 n/a n/a 0.0500 11.46
06/27/11 06/28/11 0.0275 n/a n/a 0.0275 11.60
12/28/10 12/29/10 0.0800 n/a n/a 0.0800 11.36
06/28/10 06/29/10 0.0185 n/a n/a 0.0185 10.21
12/28/09 12/29/09 0.0900 n/a n/a 0.0900 9.96
06/25/09 06/26/09 0.0255 n/a n/a 0.0255 8.72
12/29/08 12/30/08 0.1030 n/a n/a 0.1030 7.68
06/26/08 06/27/08 0.0414 n/a n/a 0.0414 9.63
12/27/07 12/28/07 0.1900 0.0725 0.1499 0.4124 10.82
06/27/07 06/28/07 0.0456 0.0670 0.2007 0.3133 12.21
12/27/06 12/28/06 0.1100 n/a 0.0789 0.1889 12.19
06/28/06 06/29/06 0.0381 0.0613 0.1156 0.2150 11.11
12/27/05 12/28/05 0.1000 0.1038 0.1389 0.3427 11.04
06/27/05 06/28/05 0.0230 0.1234 0.0478 0.1942 11.34
12/29/04 12/30/04 0.0630 0.1321 0.0307 0.2258 11.35
06/28/04 06/29/04 n/a 0.0184 0.0020 0.0204 10.54
12/29/03 12/30/03 0.0076 n/a n/a 0.0076 10.36

Literature

Fact Sheet Commentary Summary Prospectus
Annual Report Semi-Annual Report Prospectus SAI XBRL*

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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