New moniker reflects the fund’s potential suitability as a “core-plus” holding for investors of all ages
WHEATON, IL.—September 6, 2018. Monetta Financial Services, Inc. (“Monetta”), adviser to the Monetta mutual funds, today announced a name change for its Monetta Young Investor Fund to the Monetta Core Growth Fund (MYIFX). The fund’s new name more directly reflects the fund’s “core plus” investment approach and its potential suitability as a core holding for investors of all ages.
Only the fund’s name is changing. The fund’s objective, philosophy and strategy remain the same. The fund employs a diversified indexed component together with an actively managed portfolio of large-cap growth stocks.
“While the genesis of the fund’s name related to our desire to encourage young investors and parents to save for college, our goal has always been to offer a core investment holding that may be well-suited for investors of all ages,” said Monetta Founder and Chairman Robert S. Bacarella.
Bacarella said, “We believe the Monetta Core Growth Fund offers an ideal structure for a core portfolio holding because it provides potential benefits from both traditional stock picking and indexed investing.”
In this context, a recent Financial Planning Association survey asked, “Which type of management style do you think provides the best overall investment performance?” Twenty-two percent of advisors reported “passive”; twelve percent replied “active.” The overwhelming majority think a blend of the two is best.
Mr. Bacarella is a well-known proponent of financial education and helping parents pay for college. Monetta offers young investors financial education materials and access to the SAGE Tuition Rewards® Scholarship Program.
Monetta Financial Services, Inc. is a boutique Registered Investment Advisor founded in 1984 and headquartered in Wheaton, Ill. The firm launched the Monetta Fund in 1986 and the Monetta Core Growth Fund (formerly Monetta Young Investor Fund) in 2006. Learn more at www.monetta.com.
The Fund is actively managed. It invests approximately 50% of its assets in exchange-traded funds (“ETFs”).
 Data from Financial Planning Association (FPA) Trends in Investing Survey, as of 2017-2018, as reported by Kitces.com: Michael Kitces, July 25, 2018, “Financial Advisor Trends in Constructing Mutual Fund Vs ETF Investment Portfolios.”
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The Morningstar Rating™ 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 Monetta Core Growth Fund received 3 stars among 1265 for the three-year, 2 stars among 1141 for the five-year, and 5 stars among 825 Large Growth funds for the ten-year period ending 6/30/18.