RMB Mendon Financial Services Fund
Portfolio Manager
Fund Facts
Ratings reflect fee waivers in effect; in their absence, ratings may have been lower. The Morningstar RatingTM 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. 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 RMB Mendon Financial Services Fund Class A was rated as of 12/31/19 against the following number of U.S. domiciled financial funds over the following time periods: 92 funds in the last three years, 85 funds in the last 5 years, and 69 funds in the last 10 years. With respect to these financial funds, the RMB Mendon Financial Services Fund Class A received a Morningstar rating of 2, 5, and 4 stars for the 3, 5, and 10 year periods, respectively. Past performance is no guarantee of future results.
Philosophy
Investment Philosophy
The RMB Mendon Financial Services Fund seeks capital appreciation. The Fund pursues its goal by investing at least 80% of its net assets (including borrowing, if any) in stocks of U.S. companies in the financial services sector. It may invest in companies of any size, but, under normal conditions, the fund invests primarily in small-capitalization stocks. Under normal conditions, the Fund intends to remain fully invested with only minimal investments in cash, short-term debt instruments, or money market funds.
Investment Approach
- Seek companies with strong management, sound financial practices, and a defensible business niche
- Focus on firms with sustainable growth in earnings, revenue, and cash flow
- Identify undervalued equities that are temporarily distressed and have M&A potential
Performance
| Quarter | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | ||
|---|---|---|---|---|---|---|---|
| As of 12/31/2019 | |||||||
| Class A RMBKX 6/7/1999 Inception | NAV | 10.54% | 22.80% | 4.50% | 12.26% | 11.72% | 12.49% |
| SEC Return** | 5.02% | 16.67% | 2.73% | 11.11% | 11.15% | 12.20% | |
| NASDAQ Bank Index TR | 10.15% | 24.37% | 3.21% | 10.55% | 11.53% | 6.22% | |
| Class C RMBNX 4/29/2005 Inception | NAV | 10.34% | 21.88% | 3.72% | 11.43% | 10.88% | 7.87% |
| SEC Return** | 9.34% | 20.88% | 3.72% | 11.43% | 10.88% | 7.87% | |
| NASDAQ Bank Index TR | 10.15% | 24.37% | 3.21% | 10.55% | 11.53% | 4.62% | |
| Class I RMBLX 2/1/2017 Inception | NAV | 10.61% | 23.13% | 5.14% | |||
| NASDAQ Bank Index TR | 10.15% | 24.37% | 3.99% | ||||
The performance data quoted represents past performance and is not a guarantee of future results. The investment return and principal value of an investment will fluctuate, so that those shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted due to market volatility. To obtain performance as of the most recent month end, please call 1-800-462-2392.
