Plumb Funds
Thomas G. Plumb, CFA Lead Fund Portfolio Manager President, CEO, Chairman March 31, 2023 Dear Fellow Shareholders, The Plumb Balanced Fund (PLBBX) for 1st quarter ending March 31st, 2023, finished up 8.33% and beat our blended benchmark by 2.39%. Our largest weighted Information Technology sector was up 31.53% vs the 18.92% Information Technology sector of […]
Well, 2022 is in the record books and what a year it was.
“History Does Not Repeat Itself, But It Rhymes” – quote attributed to Mark Twain
After a year of characterizing our rising inflation rates as “transitory” the Administration and the Federal Reserve (the Fed) indicated that their number one domestic priority was to reduce inflation towards its long-term goal of 2%.
As you would expect, war, inflation, supply chain disruptions, and Central Bank tightening, combined to set the stage for the worst world stock market quarter in two years (the start of the pandemic global shutdown in March of 2020).
The tumultuous 2021 has finally come to an end. Though the year was wracked with political infighting, pandemic closures, supply disruptions, inflation rearing its ugly head and rising interest rates, most major world stock market indices recorded meaningful advances.
The September quarter continued the uneven economic recovery in the United States and much of the world.
For the Plumb Balanced Fund (PLBBX) for the 2nd quarter ending June 30th, 2021, finished up 6.53% and beating our blended benchmark by a sizable total of 107 basis points. We feel confident in our positive progress after a poor relative first quarter.
The world lapped the anniversary of the initial pandemic breakout in the first quarter of 2021. We all recognize that in some ways the world will never be the same.
Stating the obvious, 2020 was an unusual year on many levels including the stock and bond markets. One would intuitively think a deadly global pandemic would naturally result in poor S&P 500 market performance.
Mutual fund investing involves risk. Principal loss is possible.
The Funds may invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Funds may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. Temporary Defensive Positions: Under adverse market conditions the Fund could invest a substantial portion of its assets in US Treasury securities and money market securities which could reduce the benefit from any upswing in the markets.
The Plumb Balanced Fund will invest in debt securities, which typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund may engage in short-term trading, which could produce higher transaction costs and taxable distributions and lower the fund’s after-tax performance.
Diversification does not assure a profit nor protect against loss in a declining market.
Investment performance reflects fee waivers. In the absence of these waivers, returns would be reduced.
Any tax or legal information provided isn’t an exhaustive interpretation of some of the current income tax regulations. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.
References to other mutual fund products should not be interpreted as offers of those securities.
The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other information about the Funds. You may obtain a free hard-copy version by calling 1-866.987.7888 or you may download a prospectus here. Read it carefully before investing.
The Plumb Funds are distributed by Quasar Distributors, LLC.
Wisconsin Capital Management, the advisor to the funds, is a registered investment advisory firm based in Madison, Wisconsin, founded in 1984. Plumb Funds is a registered trademark of Wisconsin Capital Funds, Inc.