Phillip Davidson, CFA – Purity Of Process
Searching For Strong Companies Paying Consistent Dividends
Phillip Davidson
Phil Davidson joined American Century Investments in1993, but has been working
in the financial services industry since 1980. He holds a bachelor’s degree in business administration
and a master’s degree in finance from Illinois State University. He is also a Chartered Financial Analyst (CFA).
Over the years, Phil has refined his investment strategy of searching for strong companies that have a track
record of paying a consistent and rising stream of dividends. Phil strives to create a portfolio of stocks that
will generate income yields which are 2% higher than the S&P 500 index. We believe Phil’s investment style
represents two of the most important qualities of a successful Money Master. First, his income oriented
portfolio is less volatile than the S&P 500 industry benchmark. Second, his portfolio tends to outperform
the peer group during downturns in the economy. While his fund is not immune to market price declines,
his emphasis on downside protection makes the long-term ride significantly less bumpy. Since the fund’s
inception in August of 1994 there have been eleven stock market corrections in which the S&P 500 index has
declined by more than 10%. In each of these instances, Phil Davidson has been able to provide his fund investors
with relative performance that was better than the market results. Phil Davidson understands that most investors
want to capture some capital appreciation, but that they also want to protect their nest egg against potentially
steep market losses. We believe the purity of Phil Davidson’s process will continue to put his fund in a position
to achieve consistently superior results.
The fund we are investing in to gain access to Money Master Phillip Davidson is:
| Fund Name: |
American Century Equity & Income |
| Fund Symbol: |
TWEIX |
| Fund Summary: |
|
The fund seeks current income by investing in securities with a favorable income-paying history and prospects of income payments to continue or increase.
The fund manager also looks for securities of companies he believes are undervalued and have the potential for an increase in price.
The fund seeks to receive dividend payments that provide a yield that exceeds the yield of the S&P 500 Index.
Click here for the Fund Fact Sheet.
* Notes: The 10-year average return shown for TWEIX is for the 10-year period 01/01/00 - 12/31/09.
The average was calculated by adding the results for the 10 consecutive calendar years shown and
dividing that result by 10.
The 10-year average return and 10 individual annual performance results are shown with all
dividends and gains reinvested and are net of all fund fees. All fund expenses have already
been deducted from the percentage results shown.
Source for Calendar year results: Zephyr StyleADVISOR.
Past performance is no guarantee of future results. Actual future results will
vary.
The Retirement Corporation of America (RCA) is under no obligation to use
featured managers or funds and will change managers should they fail to meet
our selection criteria.
Information pertaining to RCA's advisory operations, services and fees is set
forth in RCA's current disclosure statement (copy available upon request from
RCA).