“At the beginning of the year, Matthews Asian Growth & Income Fund (MACSX) was my top dividend pick. MACSX gained in the first half of 2013 (and held up far better than other Asia Pacific funds), but currently other funds, like TCW Dividend Focus (TGIGX), are doing appreciably better. TGIGX is different from the other dividend funds in NoLoad FundX. Instead of focusing on yield, it focuses on U.S. companies that regularly pay dividends and have a catalyst for stock price appreciation. Because of this, TGIGX may have a slightly lower yield than other dividend funds, but this year the Fund has produced better returns. TGIGX is up 17.4% year-to-date through June 30, 2013, and it is the only dividend fund currently ranked as a Buy in NoLoad FundX. TGIGX is invested in some of the leading areas of the market in 2013: it’s primarily invested in the U.S., and domestic markets have outperformed international markets this year, and it’s concentrated in financials, one of this year’s leading sectors. If U.S. markets continue to lead through the rest of 2013, TGIGX should be well positioned, but if market leadership changes in the next six months of 2013, I’ll move on to the new leaders.”
Janet Brown, NoLoad FundX, www.fundx.com, 800-763-8639, July 2013
