“Active management has the potential to reduce much of the risks that often unknowingly plague passive investors,” Steve Scruggs, CFA
CHARLOTTE, N.C. (PRWEB) April 27, 2020
The Queens Road Small Cap Value Fund (QRSVX) has been named the best-performing mutual fund in the Morningstar Small Value Category for the 1-year and 3-year periods ending 3/31/2020. The fund ranks in the top 3% of the small cap value category for the 5-year period and top 15% for the 10-year period. Morningstar has assigned the fund a Gold Quantitative Rating and a 5-star Overall Morningstar Rating™.
“While index investing has become very popular, our disciplined process has significantly outpaced the Russell 2000 Index year-to-date as well as over the past 15+ years,” said Steve Scruggs, CFA, portfolio manager of the Queens Road Small Cap Value Fund. Since inception in 2002, the Queens Road Small Cap Value Fund has a cumulative return of 267% vs. 166% for the Russell 2000 Value Index (http://www.queensroadfunds.com).
Active Management, Disciplined Investing Process Beats Index
The volatile first quarter stock market led by the COVID-19 pandemic led many mutual funds to underperform their benchmark indices. Bucking this trend, the Queens Road Small Cap Value Fund has outperformed the Russell 2000 Value Index by over 13% year-to-date (through 3/31/2020) while beating the Russell 2000 Value Index over the past 1-, 3-, 5-, 10- and 15-year periods.
“Active management has the potential to reduce much of the risks that often unknowingly plague passive investors,” said Scruggs. “While passive investing can provide low-cost investing it is not without risks. The biggest and likely most unrealized risk is that by piling onto the passive investing bandwagon, one virtually puts the attainment of their goals on cruise control.”
Queens Road Small Cap Value Fund Takeaways:
- The Queens Road Small Cap Value fund (QRSVX) is 13% ahead of the Russell 2000 Value Index year-to-date through 3/31/2020.
- The fund has beaten the Russell 2000 Value Index over the past 1-, 3-, 5-, 10-, and 15-year periods as of 3/31/20.
- Cumulative performance since inception in 2002 for the Queens Road Small Value fund is 267% vs. 166% for the Russell 2000 Value Index.
Queens Road Small Cap Value Fund Has Been Named:
- Best performing fund in Morningstar Small Cap Value Category for past 1-year.
- Best performing fund in Morningstar Small Cap Value Category for past 3-years.
- Top 3% for the 5-year period
- Top 15% for the 10-year period
- Morningstar Gold Quantitative Rating™
- 5-star Overall Morningstar Rating™
Members of the media wishing to speak with Queens Road Funds personnel should contact: Joseph Finora: jfinora@optonline.net / 631-680-7870.
Queens Road Funds: 1031 South Caldwell St., Suite 200, Charlotte, NC 28203, (888) 353 0261 / http://www.queensroadfunds.com
The Queens Road Funds are managed by Bragg Financial Advisors, a boutique investment advisory firm located in Charlotte, North Carolina. The firm manages over $1.7 billion for institutions and private clients as of 12/31/2019. The portfolio manager, fund analysts and trustees, and firm principals and associates are among the largest shareholders in the Queens Road Funds. Learn more at http://www.braggfinancial.com.
Bragg Financial Advisors, Inc. is a Registered Investment Firm offering securities through an affiliate, Queens Road Securities, LLC, Member FINRA/SIPC. Bragg Financial Advisors, Inc. is the investment adviser for the Queens Road Funds. Queens Road Securities, LLC is the distributor of the Queens Road Funds and an affiliate of Bragg Financial Advisors, Inc.
Queens Road Small Cap Value Fund invests primarily in small-cap companies which may involve considerably more risk than investing in larger-cap stock. An investor should carefully consider a Fund’s investment objective, risks, fees, charges, and expenses before investing or sending money. This and other important information about the Queens Road Funds can be found in the Funds’ prospectus. To obtain a prospectus, and information about the performance of the Queens Road Funds, please call (888) 353-0261 or visit http://www.queensroadfunds.com. Please read the prospectus carefully before investing. Distributor: Queens Road Securities, LLC
© 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
The Queens Road Small Cap Value Fund was rated against the following numbers of Small Value funds over the following time periods: 407 funds in the last three years, 356 funds in the last five years, and 250 funds in the last ten years. With respect to these Small Value category funds, the Queens Road Small Cap Value Fund received a Morningstar Rating of 5-stars for the three-, five- and 10-year periods. Past performance is no guarantee of future results.
Morningstar Quantitative Rating™
Morningstar’s quantitative fund ratings consist of: (i) Morningstar Quantitative Rating (overall score), (ii) Quantitative Parent pillar, (iii) Quantitative People pillar, and (iv) Quantitative Process pillar (collectively the “Quantitative Fund Ratings”).The Quantitative Fund Ratings are calculated monthly and derived from the analyst-driven ratings of a fund’s peers as determined by statistical algorithms. Morningstar, Inc. calculates Quantitative Fund Ratings for funds when an analyst rating does not exist as part of its qualitative coverage.
Morningstar Quantitative Rating: Intended to be comparable to Morningstar’s Analyst Ratings for open end funds and ETFs, which is the summary expression of Morningstar’s forward-looking analysis of a fund. The Morningstar Analyst Rating is based on the analyst’s conviction in the fund’s ability to outperform its peer group and/or relevant benchmark on a risk-adjusted basis over a full market cycle of at least 5 years. Ratings are assigned on a five-tier scale with three positive ratings of Gold, Silver, and Bronze, a Neutral rating, and a Negative rating. Morningstar calculates the Morningstar Quantitative Rating using a statistical model derived from the Morningstar Analyst Rating our fund analysts assign to open-end funds and ETFs. Please go to: https://shareholders.morningstar.com/investor-relations/governance/Compliance–Disclosure/default.aspx for information about Morningstar Analyst Rating Morningstar’s fund analysts assign to funds.
Quantitative Parent pillar: Intended to be comparable to Morningstar’s Parent pillar scores, which provides Morningstar’s analyst opinion on the stewardship quality of a firm. Morningstar calculates the Quantitative Parent pillar using an algorithm designed to predict the Parent Pillar score our fund analysts would assign to the fund. The quantitative pillar rating is expressed in both a rating and a numerical value as High (5), Above Average (4), Average (3), Below Average (2), Low (1).
Quantitative People pillar: Intended to be comparable to Morningstar’s People pillar scores, which provides Morningstar’s analyst opinion on the fund manager’s talent, tenure, and resources. Morningstar calculates the Quantitative People pillar using an algorithm designed to predict the People pillar score our fund analysts would assign to the fund. The quantitative pillar rating is expressed in both a rating and a numerical value as High (5), Above Average (4), Average (3), Below Average (2), Low (1).
Quantitative Process Pillar: Intended to be comparable to Morningstar’s Process pillar scores, which provides Morningstar’s analyst opinion on the fund’s strategy and whether the management has a competitive advantage enabling it to execute the process and consistently over time. Morningstar calculates the Quantitative Process pillar using an algorithm designed to predict the Process pillar score our fund analysts would assign to the fund. The quantitative pillar rating is expressed in both a rating and a numerical value as High (5), Above Average (4), Average (3), Below Average (2), and Low (1).
Morningstar Quantitative Ratings have not been made available to the issuer of the security prior to publication. Risk Warning The quantitative fund ratings are not statements of fact. Morningstar does not guarantee the completeness or accuracy of the assumptions or models used in determining the quantitative fund ratings. In addition, there is the risk that the return target will not be met due to such things as unforeseen changes in changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, and tax rate. For investments in foreign markets there are further risks, generally based on exchange rate changes or changes in political and social conditions. A change in the fundamental factors underlying the quantitative fund ratings can mean that the recommendation is subsequently no longer accurate.
For more information about Morningstar’s quantitative methodology, please visit: https://shareholders.morningstar.com/investor-relations/governance/Compliance–Disclosure/default.aspx.
