SUMMARY
We rate DNP Select Income Fund Inc at C-. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund invests approximately 71% of its assets in stocks and may be considered for investors seeking a Sector – Utilities strategy.
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POSITIVES AND RISKS
Total return ranks above peers over the last three years. The DNP Select Income Fund Inc has returned an annual rate of 7.96% since inception. More recently, the fund has generated a total return of 3.18% in the last five years, 3.30% in the last three years, and -13.81% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 38% of them. It has also outpaced 57% of its competitors on a three year basis and 6% of them over the last year for the period ending 1/31/2024. On a year to date basis, DNP has returned 7.66%.
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Downside risk has been below average. DNP has a draw down risk of -28.26%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 12.6%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 1/31/2024, the fund was trading at a price of $8.91, which is 1.7% below its 52-week high of $9.06 and 5.6% above its 52-week low of $8.44.
High expense ratio hinders performance. On total assets of $2.68 billion, DNP maintains a high expense ratio compared to its Sector – Utilities peers of 2.88% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As DNP is a closed end fund, it has no front end or back end load.
Manager tenure and performance record are net positives. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The DNP Select Income Fund Inc has been managed by Daniel J. Petrisko for the last 8 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 64% of other fund managers.
Source: https://t-tees.com
Category: WHY
