Brian Yacktman – “…we’re looking at the three biggest US deposit franchises JPMorgan Chase Bank of America, and of course Wells Fargo, we think all three of them are being overly discounted in this environment because obviously as investors focus on the short run that interest rate expectations are coming down it’ll hurt their profitability and their net interest margins, but for a long-term investor that’s focused on we tend to focus on global Champions that have enduring pricing power these banks have pricing power in their low cost deposits and we think that it’s right now is a great buying opportunity to start getting into them.”
“…But what when I bring up these three Banks, I mean right now they’re better capitalized than about what we’ve seen more liquidity. They’re trading at about the cheapest valuations relative to the S&P 500 in about 40 years. So ultimately what’s going to underpin their profitability is the deposit growth and the deposit growth still growing at 5% a year. If you’re short term investor. You’re worried. Yeah, but in the long run, we still see great returns coming forward.”
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Earnings Growth is not a measure of the Fund’s future performance.
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, without adjustment for sales loads. 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 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 YCGEX Fund was rated against the following numbers of Large Blend Funds over the following time periods as of 03/31/2020: 1214 funds overall, 1127 funds in the last three years, and 982 funds in the last five years. With respect to these Large Blend Funds, YCGEX Fund received a Morningstar Rating of 5 stars, 5 stars and 5 stars for the overall, three-, and five- year periods, respectively.
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Morningstar ranked YCGEX in the top 10%, 3% and 3% out of 1229, 1127 and 982 for the Large Cap Blend Category for the one-, three- and five-year periods ending 03/31/2020, respectively. Morningstar Rankings represent a fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees.
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