The Hermantown-based Teberg Fund gained 10.12 percent during the 12-month period from April 1, 2017, to March 31, 2018, according to the fund’s annual report. Its share price rose 96 cents, from $10.17 on the first trading day of the period to $11.13 on the last.
This is the second consecutive 12-month period that the fund has achieved double-digit growth. A year ago, it reported a fiscal-year gain of 10.39 percent.
“The only major turnover during the period was our move out of the high-yield bond market into cash for approximately two months, from the middle of the fourth quarter of 2017 to the start of the first quarter of 2018. The Fund was nearly fully invested for the rest of the period, with a relatively small cash balance,” said Portfolio Manager Curtis A. Teberg. “Our research proved to be accurate when we were rewarded for our confidence in the market with good returns on nearly all our investments when the market skyrocketed.”
He said the exception was the high-yield bond portfolio, with only one of four positions in the black in January even when the market peaked. All positions had dropped significantly by the end of the period and were in the red.
“In hindsight, we would have been better off staying out of bonds for the entire period. This loss in value was likely due to speculation about rising interest rates which generally cause bond funds to drop,” Teberg said. But overall, the fund managed to achieve a solid gain, he noted.
“On the positive side, a high percentage of our assets were allocated to ETFs for the entire period. This included a good mix of funds, including several designed to track the indexes and others which followed various sectors and industries. Naturally the index funds performed especially well as the indexes rose into new record territory. The standouts were ETFs which tracked the Dow, NASDAQ and Russell 2000 indexes. Another top performer was a semiconductor ETF which gained more than 20 percent during the period and a financial ETF which also excelled. All of our ETF positions gained during the period,” he added.
The Teberg Fund marked its 16th year of operation on April 1.