Davidson Multi-Cap Equity Fund Class A (DFMAX)

Overview

The company operates as a diversified investment fund, focusing on an array of equity securities that span a wide range of market capitalizations and investment styles. It aims to allocate its assets into both value and growth stocks, including those that offer dividends and those that do not. The fund's strategy involves investing a significant portion of its net assets, a minimum of 80%, in these equities, incorporating the use of borrowings for investment purposes when necessary. In its pursuit of diversification and potential returns, the fund also reserves the ability to invest up to 25% of its net assets in foreign securities, extending its reach beyond domestic markets and into international territories.

Products and Services

• Equity Securities Investment: The fund dedicates at least 80% of its net assets to invest in a broad array of equity securities. This includes stocks across various market capitalizations and investment styles, catering to investors looking for diversified exposure in their portfolios. The strategic blend of value and growth stocks, along with dividend-paying and non-dividend-paying stocks, provides a balanced approach designed to meet different investment objectives and risk preferences.

• Value and Growth Stocks: By investing in both value and growth stocks, the fund caters to a wide range of investor preferences. Value stocks are typically underpriced compared to their fundamental worth, offering the potential for capital appreciation. Growth stocks, on the other hand, are expected to grow at an above-average rate in terms of earnings or revenue, making them appealing for those seeking higher returns. This dual approach allows investors to benefit from different market conditions and company performance levels.

• Dividend-Paying and Non-Dividend-Paying Stocks: The fund's investment portfolio includes both dividend-paying and non-dividend-paying stocks, providing an option for income-seeking investors as well as those more focused on capital gains. Dividend-paying stocks offer the potential for regular income in addition to capital appreciation, while non-dividend-paying stocks are typically reinvesting their earnings into the company for further growth, which could result in higher future valuations.

• Foreign Securities Investment: With the ability to allocate up to 25% of its net assets in foreign securities, the fund offers investors an opportunity to diversify their investment horizons globally. This includes exposure to international markets, which can introduce different growth potentials and risk factors compared to domestic investments. It provides a mix of geographical diversification, aiming to capture returns from across the world while managing the overall risk profile of the investment portfolio.