The Pearl Total Return Fund (PFTRX) is one of those little funds that's beaten the S&P 500 every year since the fund went public in July 2001.
Morningstar classifies this gem as a World Stock Fund. Robert Solt, president of the Pearl Fund, says holdings in this fund of funds change depending on where in the world management sees the best investment opportunities.
Says Solt of this Muscatine, Iowa, fund family, "Finding fund managers who have a strong track record in the areas of the market we feel are going to do well in the coming year to 18 months is paramount."
As with any fund of funds, keeping expenses low is critical. Solt explains Pearl Total Return Fund's two levels of expenses: those of the funds held in the portfolio and Pearl's annual expenses. He prefers to hold no-load funds and top-performing ones with low expenses. At year-end 2006, about 50 percent of the fund's assets were invested as follows: 23.11 percent in Oak-mark International Small Cap, 18.06 percent in First Eagle Overseas and 9.34 percent in Kinetic Paradigm.
You'll love this fund's past performance--in the 5-year period ending December 31, 2006, it gained 90.49 percent while the S&P 500 Index gained 35.05 percent. What you need to be mindful of are expenses and market risks.
Dian Vujovich is an author, syndicated columnist and publisher of fund investing site www.fundfreebies.com.