Analyzing the American Century Equity Income Fund’s Performance



Performance against the Russell 3000 Index

The American Century Equity Income Fund (TWEAX) gained 8.3% monthly for the period ending October 29, 2015. However, the fund fell 1.5% for the one-month period ending September 2015. Meanwhile, the Russell 3000 Value Index, the fund’s the benchmark, fell 3.1% in the same period.

Article continues below advertisement

High exposure

The TWEAX fund has a portfolio allocation of 12.9% to the energy sector. This is high compared to its peers in this review. Due to this comparatively high exposure, the TWEAX fund has been impacted by the fall in Brent crude price to a greater degree than its peers in this review.

For the one-year period ended September 2015, the fund returned -1.9%, while its —benchmarkthe Russell 3000 Value Index—returned -6.5% in the same period. In the five years ended September, the fund returned 9.2%.

Top holding performance

The top ten holdings of the TWEAX fund make up 34.1% of the fund’s net assets. For September, Bank of America (BAC), forming 4.8% of the portfolio, fell by 4.4% in September 2015. Meanwhile, Wells Fargo (WFC), with a portfolio weight of 4.6% of net assets, fell by 3.7% in September. ExxonMobil (XOM), another investment with a portfolio weight of 4.1% of net assets, fell by 1.2% in September. Merck & Company (MKQ), with a portfolio weight of 3.4% of net assets, fell by 6.4% in September. Pepsico (PEP), forming 3.2% of net assets, fell by 2.3% in September.


More From Market Realist