Susan Dziubinski: Hi, I'm Susan Dziubinski from Morningstar. The first quarter of 2019 is officially in the books. Here's a look at three Morningstar Medalist funds whose returns finished near the top of their respective categories last quarter.
Chris Franz: Invesco Small Cap Value is the top-performing fund in the small-value Morningstar Category year-to-date. But this follows a bottom-decile 2018 showing when it shed a quarter of its value. Now the fund also underwent a management change in 2018 when long time comanagers Jonathan Edwards and Jonathan Mueller took over. But the two didn’t change the strategy's aggressive investment approach, which seeks deeply discounted stocks with a contrarian bent but leads to higher volatility. Now the two are patient, and they don’t turn the portfolio over that often, but this high beta profile can lead to wide swings in performance year-to-year. Still, the fund has low fees and recently reopened to new investors in January 2019. Investors can succeed here, but patience and an appetite for risk are required.
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Christopher Franz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.