The Mairs & Power Growth Fund (MPGFX) tilts toward growth stocks in companies of any size that trade at reasonable prices.
It also has a regional quirk: The majority of the fund's companies must be based in the upper Midwest, near the fund managers' St. Paul, Minnesota, home base.
In the past, the fund's regional focus meant the portfolio had a heavy tilt toward the industrial, financial and health care sectors.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But in recent years, managers Andy Adams and Peter Johnson have picked up shares in tech stocks – at the right price, of course – including Nvidia (NVDA), Microsoft (MSFT) and Amazon.com (AMZN), among others.
Those shares are among the fund's top holdings now, and they have been in retreat for much of the first four months of the year.
As a result, Mairs & Power Growth lost 7.5% for the year to date through April, lagging the 5.1% decline in the S&P 500 Index. Over the past 12 months, the fund's 5.0% gain lagged the S&P 500 by a wide margin as well.
Even so, many of the fund's financial stocks advanced, including JPMorgan Chase (JPM), Fiserv (FI) and Visa (V). All have posted double-digit gains over the past 12 months, which helped the fund's return.
Gains in Swiss pharmaceutical firm Roche Holdings (RHHBY) and utility company WEC Energy Group (WEC) provided a lift, too.
We're watching the fund – which is a member of the Kiplinger 25, our favorite no-load mutual funds – closely. Tech stocks make up 34% of the portfolio, above average for its peer group and up from a small exposure a decade ago.
During the selloff, the managers added another tech stock, Taiwan Semiconductor Manufacturing (TSM), to the portfolio (albeit at discounted prices).
This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
-
The ‘First Year of Retirement’ RuleThe 'first year of retirement' rule says the 12 months after you leave work set the tone for your entire later life — so it's vital to approach them mindfully.
-
My First $1 Million: Retired International Finance Director, 68, AtlantaEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Timing Is Everything for Roth Conversions: An Expert's Guide to the Right StrategyUnderstanding the nuances of Roth conversions can help you avoid forking over more money in taxes than you need to.
-
Are You Ready for the Emotional Side of Retirement?Financial adviser warns that life after work is coming, so start preparing … mentally, as well as financially. If you're nervous, take heart. Some simple strategies could ease the way.
-
Stock Market Today: Dow Dives 769 Points on Iran-Israel ConflictLosses accelerated in afternoon trading amid reports Iran retaliated against Israel.
-
Four Ways to Help Prevent a Market Downturn From Scrambling Your Nest EggYou may not be able to avoid a market decline when you're newly retired and starting to rely on your nest egg for income, but you can plan for that risk.
-
Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and FiresHomeowners can take these steps to protect their properties from hurricanes, tornadoes, wildfires and hail, while also potentially reducing their insurance costs.
-
Stock Market Today: Stocks Rise as Treasury Yields DropA round of not-too-terrible economic data helped boost the bond market Thursday.
-
A Financial Adviser's Defense of Annuities: They're Just MisunderstoodAnnuities can offer retirement income stability and security against market volatility, though some do have drawbacks. The key is to understand their features before buying.
-
Diversification: An Investment Adviser's Guide to Why You Need It and How to Achieve ItHow confident are you that your money will go the distance? Building a balanced portfolio can shore up your investments' long-term stability.
