Utah Focus Fund (UTFOX)

Overview

The fund described focuses on investment in domestic equity securities, which encompasses both common and preferred stock, of companies that have significant economic ties to the State of Utah. Operating with the goal of investing at least 80% of its net assets (plus any borrowings intended for investment purposes) in these locally affiliated companies, the fund aims to leverage the economic landscape and potential returns specific to Utah. The portfolio management strategy is centered around a selection of approximately 30 to 40 stocks, indicating a focused investment approach rather than widespread diversification. This is further emphasized by the fund's classification as non-diversified, suggesting that it may invest more heavily in fewer securities, potentially increasing the risk and reward. The fund is managed by an Advisor, who plays a critical role in the selection and ongoing evaluation of the portfolio's holdings, ensuring they align with the fund’s investment objectives and the economic interests within Utah.

Products and Services

• Domestic Equity Securities

Investments are primarily made in domestic equity securities, including both common and preferred stock, of companies with a strong connection to Utah. This reflects the fund’s focus on leveraging the economic dynamics and investment opportunities within the state. Equity securities are chosen based on their potential to contribute to the fund's goals, considering the economic ties and contributions of these companies to the State of Utah.

• Investment in Common and Preferred Stock

The fund allocates its assets in common and preferred stocks, diversifying within its focused approach to potentially maximize returns while adhering to its investment strategy. Common stock investments offer the possibility of capital growth through stock price appreciation and dividends, whereas preferred stock provides opportunities for income generation through fixed dividends, combining growth and income elements within the portfolio.

• Non-diversified Fund Strategy

As a non-diversified fund, it may invest a larger portion of its assets in fewer issuers. This strategy allows for potentially higher investments in companies the Advisor believes have the best outlook, though it comes with a higher level of risk compared to diversified portfolios. The focus on 30 to 40 stocks is indicative of a strategy that seeks to balance this risk with the potential for significant investment returns from Utah's economic landscape.