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Seeking The Asian Sanborn Map

Buffett’s Investment In Sanborn Map Warren Buffett wrote at length about his investment in Sanborn Map, a publisher of maps of U.S. cities and towns, in the Buffett Partnership’s 1961 letter . Sanborn Map represented 25% and 35% of assets for the Buffett Partnership in 1958 and 1959 respectively. Sanborn Map was referred to as a company which “published minutely detailed maps of power lines, water mains, driveways, building engineering, roof composition, and emergency stairwells for all the cities of the United States, maps that were mainly bought by insurance companies,” in Alice Schroeder’s The Snowball. According to Roger Lowenstein’s book “Buffett: The Making of an American Capitalist,” Buffett earned “roughly a 50 percent profit” on the investment in Sanborn Map. Going back to the Buffett Partnership’s 1961 letter, Warren Buffett shared how he exited the investment at a profit by exercising influence by virtue of his significant shareholdings: Our holdings (including associates) were increased through open market purchases to about 24,000 shares and the total represented by the three groups increased to 46,000 shares. We hoped to separate the two businesses, realize the fair value of the investment portfolio and work to re-establish the earning power of the map business…There was considerable opposition on the Board to change of any type, particularly when initiated by an outsider, although management was in complete accord with our plan and a similar plan had been recommended by Booz, Allen & Hamilton (Management Experts). To avoid a proxy fight (which very probably would not have been forthcoming and which we would have been certain of winning) and to avoid time delay with a large portion of Sanborn’s money tied up in blue-chip stocks which I didn’t care for at current prices, a plan was evolved taking out all stockholders at fair value who wanted out. The SEC ruled favorably on the fairness of the plan. About 72% of the Sanborn stock, involving 50% of the 1,600 stockholders, was exchanged for portfolio securities at fair value. The map business was left with over $l,25 million in government and municipal bonds as a reserve fund, and a potential corporate capital gains tax of over $1 million was eliminated. The remaining stockholders were left with a slightly improved asset value, substantially higher earnings per share, and an increased dividend rate. Sanborn still exists today and has transformed itself into a provider of “a full suite of photogrammetric mapping and geographic information system (NYSE: GIS ) services,” according to its corporate website . Sanborn Map ‘s Deep Value And Wide Moat In many ways, Sanborn Map represented a classic deep value cigar-butt investment that Benjamin Graham would have been proud of, although the company had elements of a wide moat (albeit diminishing) investment as well. In 1958, when Buffett first initiated a position in Sanborn Map, the stock was trading for $45 per share, compared with the company’s investment portfolio of stocks and bonds valued at $65 per share. This implied that the market was valuing Sanborn Map’s map publishing business at -$20 per share, suggesting that investors vested at current prices were getting the map business for free. I have written extensively about deep value bargains net of cash and investments in my articles “How Benjamin Graham Will Possibly Invest In A World Without Net-Nets,” “Seeking Value In Sum-Of-The-Parts Discounts” and “A Case Study On Large-Cap Value Investing” published here , here and here . Sanborn Map was also a wide-moat company in various aspects. Firstly, Sanborn Map dominated its market, as evidenced by Buffett’s choice of words in his letter “For seventy-five years the business operated in a more or less monopolistic manner.” Secondly, Sanborn Map enjoyed a high degree of recurring revenues. Maps required annual revisions (via pasteovers), for which Sanborn Map will charge its customer around $100 every year. Thirdly, customer demand was fairly predictable (insurance companies needed maps to assess risk and underwrite policies) and Sanborn Map did not need to invest heavily in marketing to retain its customers. Sanborn Map’s moat eventually narrowed as its key clients, the insurance companies merged, which meant less business and more powerful customers. Furthermore, “a competitive method of under-writing known as “carding” made inroads on Sanborn’s business and after-tax profits of the map business fell from an average annual level of over $500,000 in the late 1930’s to under $100,000 in 1958 and 1959″ according to Buffett. Asia’s Sanborn Map Japan-listed OYO Corporation (9755 JP) is potentially Asia’s Sanborn Map. OYO Corporation call itself the “Doctor to the Earth” and its corporate profile on the Japan Infrastructure Development Institute website reads as follows: OYO Corporation was founded in 1957 as a general consultant firm specializing in study of the earth by Dr. Fukuda and Dr. Suyama. OYO brings together geology, geophysics and geotechnical engineering to provide a wide range of services in the four fields of construction, resources, disaster prevention and environment. In addition to these technical services, OYO is continually expanding its development of measuring instruments based on our own abundant experience in the field.To date OYO has grown up to the largest specialist organization in Japan in geotechnical field. OYO has about 1,100 staffs, more than two-thirds of them are university graduates in engineering and scientific fields. Besides some 60 numbers of domestic branch offices, we have overseas branches and subsidiary companies in U.S.A., U.K.,and J.V. in France. OYO has devoted itself to research and development in an effort toward “The Creation of Geoengineering.” Our greatest desire is to apply our achievements and to provide services of higher quality to our clients and customers throughout the world. OYO operates in three key business segments: Engineering, Consultation and Instruments. The Engineering business provides ground structure information for the major motorway constructions in Japan; assists with post-disaster management by conducting investigations to recommend relevant repair work; conducts air, land and sea-born investigations for natural resource explorations; and does site investigation for pollution remediation projects. OYO’s Consultation segment involves itself in the site assessment and determination process of nearly all of Japan’s power plants; provides earthquake damage estimation to city planners; and conducts geotechnical investigations and subsidence forecasts for airports built on water. Its Instruments business develops measuring & monitoring instruments used for a wide range of purposes including monitoring the condition and movement of polluted underground water, seismographs for exploration of natural resources under the sea bottom, and geotechnical investigations from: shallow soft soil to deep hard rock structures on the ground and in the sea. OYO’s net cash and short-term investments of JPY 24.0 billion as of December 2015 currently represents approximately 77% of OYO’s current market capitalization, which values the company’s operating business at a mere 3 times trailing EV/EBIT. While OYO is not exactly as great a bargain as Sanborn Map, the stock is still the cheapest of listed companies providing surveying and mapping services. As a bonus for my subscribers of my premium research service , they will get access to: 1) a list of publicly-traded companies providing surveying and mapping services; and 2) a list of stocks with short-term investments exceeding their market capitalizations. Asia/U.S. Deep-Value Wide-Moat Stocks Premium Research Subscribers to my Asia/U.S. Deep-Value Wide-Moat Stocks exclusive research service get full access to the list of deep-value & wide moat investment candidates and value traps, including “Magic Formula” stocks, wide moat compounders, hidden champions, high quality businesses, net-nets, net cash stocks, low P/B stocks and sum-of-the-parts discounts. The potential investment candidates I profiled for my subscribers in May 2016 include: (1) a U.S.-listed market leader in a niche consumer lifestyle space which is trading at 0.80 times P/NCAV and 0.70 times P/B, but remains debt-free and profitable; (2) a U.S.-listed Net Operating Losses-rich deep value play valued by the market at 2.6 times EV/EBITDA net of the present value of its NOLs; (3) an Asian-listed manufacturer of wireless communication products which is the market leader in its home market and the first to export such products to the U.S.; it is a net-net trading at 0.75 times P/NCAV with net cash equivalent to its market capitalization; (4) a U.S.-listed Magic Formula stock trading at 3 times trailing EV/EBIT and Acquirer’s Multiple, sporting a 10% dividend yield net of withholding tax; (5) a U.S.-listed Munger Cannibal trading at 7 times trailing EV/EBIT and Acquirer’s Multiple; (6) an Asian-listed company which is a global leader in a certain medical device niche trading at 3.5 times trailing EV/EBIT and 3.5 times Acquirer’s Multiple, versus a trailing ROIC of 27%. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Suburban Propane Partners’ (SPH) CEO Mike Stivala on Q2 2016 Results – Earnings Call Transcript

Suburban Propane Partners LP (NYSE: SPH ) Q2 2016 Earnings Conference Call May 05, 2016, 09:00 ET Executives Davin D’Ambrosio – VP & Treasurer Mike Stivala – President & CEO Mike Kuglin – CFO & CAO Analysts Brian Brungardt – Stifel Operator Welcome to the Suburban Propane Second Quarter 2016 Financial Results Conference Call. [Operator Instructions]. And ladies and gentlemen, this conference call contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended relating to the Partnership’s future business expectations and predictions and financial condition and results of operations. These forward-looking statements involve certain risks and uncertainties. The Partnership has listed some of the important factors that could cause actual results to differ materially from those discussed in such forward-looking statements. These are referred to as cautionary statements in its earnings press release which can be viewed on the Company’s website. All subsequent written and oral forward-looking statements attributable to the Partnership or persons acting on its behalf are expressly qualified in their entirety by such cautionary statements. With that being said, I’ll turn the conference over to the Vice President and Treasurer, Mr. Davin D’Ambrosio. Please go ahead, sir. Davin D’Ambrosio Thank you, John and good morning, everyone. Welcome to Suburban’s Fiscal 2016 Second Quarter Earnings Conference Call. Joining me this morning is Mike Stivala, President and Chief Executive Officer; Mike Kuglin, Chief Financial Officer and Chief Accounting Officer; Mark Wienberg, Chief Development Officer; and Steve Boyd, our Senior Vice President of Operations. Purpose of today’s call is to review our second quarter financial results, along with our current outlook for the business. As usual, once we’ve concluded our prepared remarks, we will open the session to questions. However, before getting started, I would like to briefly reemphasize what the operator has just explained about forward-looking statements. Additional information about factors that could cause actual results to differ materially from those discussed in forward-looking statements is contained in the Partnership’s SEC filings, including its Form 10-K for the fiscal year ended September 26, 2015 and its Form 10-Q for the period ended March 26, 2016 which will be filed by the end of business today. Copies of these filings may be obtained by contacting the Partnership or the SEC. Certain non-GAAP measures will be discussed on this call. We have provided a description of those measures, as well as a discussion of why we believe this information to be useful in our Form 8-K furnished to the SEC this morning. Form 8-K can be accessed through a link on our website at suburbanpropane.com. At this time, I’d like to turn the call over to Mike Stivala for some opening remarks. Mike? Mike Stivala Thanks, Davin. Good morning, everyone. Thanks for joining us today. The record warm temperatures reported for our first fiscal quarter persisted into the second quarter making the 2015, 2016 heating season the warmest on record. In fact according to NOAA, heating degree days for this year’s heating season were reported at 82% of normal. Our volumes were obviously impacted by the lack of customer demand for heating needs. However, we rely on our flexible cost structure and the strength of our balance sheet to help mitigate some of the short-term weather-driven earnings shortfall. The fundamentals of our business remained strong and as has always been our philosophy, our balance sheet and our business model provide us with the support to withstand the effects of this kind of dramatic weather event. We came into this fiscal year with more than $150 million of cash on hand. Despite the lower earnings, we continued to fund all of our working capital and capital expenditure requirements without the need to borrow under our revolving credit facility throughout this year’s heating season. We also funded the $42 million acquisition of Propane U.S.A at the end of our first fiscal quarter and we ended the second fiscal quarter with approximately $59 million of cash on the balance sheet. Additionally, during the quarter, we took steps to further strengthen our liquidity position, with the opportunistic refinancing of our revolving credit facility which was scheduled to mature in January 2017. We received excellent support from our bank group as the syndication was well over subscribed, despite the challenging conditions in the credit markets. The new facility increases our available borrowing capacity from $400 million to $500 million in support of our long-term growth initiatives. It reduces our interest requirements from improved pricing and relaxes several of the covenant requirements. With the heating season now behind us, our employees are well-positioned to focus on the things they can control, fine-tuning our operating model to drive further efficiencies, continuing to execute on our customer base management initiatives and seeking opportunities to expand in strategic markets. In a moment, I’ll provide some closing remarks including some comments on our outlook for the remainder of the fiscal year. However, at this point, I’d like to turn the call over to Mike Kuglin to discuss our second quarter results in more detail. Mike? Mike Kuglin Thanks, Mike and good morning, everyone. To be consistent with previous reporting, as I discuss our second quarter results, I am excluding the impact of unrealized non-cash mark-to-market adjustments on derivative instruments used in risk management activities which resulted in an unrealized loss of $739,000 in the second quarter of fiscal 2016 compared to an unrealized loss of $7.4 million in the prior year second quarter. Additionally, net income and EBITDA in the second quarter of fiscal 2016 include a loss on debt extinguishment of $292,000 associated with refinancing of our revolving credit facility. Net income and EBITDA for the second quarter of fiscal 2015 include a loss on debt extinguishment of $15.1 million associated with refinancing of our 2020 senior notes and $2.1 million of expenses related to integration of Inergy Propane. Therefore, excluding these items, net income for the second quarter of fiscal 2016 would have amounted to $93 million or $1.53 per common unit compared to net income of $161.2 million or $2.66 per common unit for the prior year’s second quarter. Adjusted EBITDA for the second quarter of fiscal 2016 amounted to $145.1 million compared to $214.3 million in the prior year second quarter. As Mike indicated, record warm weather for this year’s heating season was really the story for both the first and second quarters of 2016. As a result, retail propane gallons sold in the second quarter of fiscal 2016 of 199.7 million gallons decreased 38.1 million gallons or 19.1% compared to the prior year. Sales of fuel oil and other refined fuels in the second quarter of fiscal 2016 of 13.3 million gallons decreased 6.6 million gallons compared to the prior year. Similar to the first quarter, the unseasonably warm weather was persistent as temperatures were warmer than normal and the prior year for nearly all 13 weeks of the second quarter. The only market that experienced favorable weather compared to the prior year was California where volumes responded strongly compared to the prior year. Overall, average temperatures across all of our service territories for the second quarter of fiscal 2016 was 13% warmer than normal and 20% warmer than the prior year second quarter. In our northeast service territories, average temperatures for the second quarter were 30% warmer than the prior year second quarter. In the commodity markets, propane prices at the beginning of the quarter continued to descend lower from the first quarter. However, prices by mid-February then rallied for much of the remainder of the quarter. Despite the recent increase, commodity prices remained lower relative to historical price levels. Overall, average posted prices for propane, basis Mont Bellevue, for the second quarter of fiscal 2016 were $0.39 per gallon or 27% lower than the prior year second quarter. Average fuel oil prices of $1.08 per gallon for the second quarter of fiscal 2016 were 40.2% lower than the prior year second quarter. Total gross margins of $267.9 million for the second quarter of fiscal 2016 were $85.3 million or 24.1% lower than the prior year primarily due to lower volumes sold. Unit margins for the second quarter were slightly lower than the prior year second quarter as a result of lower mix of fee-related volumes. Combined operating and G&A expenses of $122.8 million were $16.1 million or 11.6% lower than the prior year second quarter as we leveraged our flexible cost structure to reduce expenses. Savings were primarily due to lower volume-related variable costs including lower over time and vehicle fuel costs, lower variable compensation associated with lower earnings, as well as lower insurance costs and continued operating efficiencies resulting in reduced headcount and vehicle count. Net interest expense of $18.9 million for the second quarter of fiscal 2016 decreased by approximately $800,000 primarily due to savings through the refinancing of the Partnership’s previous 7.375% senior notes due 2020 with new 5.75% senior notes due 2025 which is completed in the second quarter of fiscal 2015. Total capital spending for the second quarter of fiscal 2016 amounted to $11.8 million including $5.8 million of maintenance capital compared to total CapEx of $12 million in the prior year second quarter. Turning to our balance sheet, we now move through our historically high period of seasonal working capital needs and during the second quarter, we funded all our working capital and capital expenditures cash on hand and internally generated cash. With more than $353 million of capacity under our revolver and $58.7 million of cash on hand at the end of the second quarter, we have ample liquidity to fund our working capital requirements and our projected capital needs for the remainder of the fiscal year. As Mike mentioned, we completed the refinancing of our senior secured credit facility during the second quarter. The new five-year revolving credit facility amended and restated previous revolving credit facility dated January 5, 2012. We’re very pleased with the outcome of this opportunistic refinancing and the support of our bank group. Back to you Mike. Mike Stivala Thanks, Mike. As announced in our April 21 press release, our Board of Supervisors declared our quarterly distribution of $0.8875 per common unit. In respect of our second quarter of fiscal 2016, that equates to an annualized rate of $3.55 per common unit. The quarterly distribution will be paid on May 10 to our unitholders of record as of May 3. While this past winter season provided a challenging operating environment due to significantly lower customer demand, the temporary earnings shortfall does not affect the overall fundamentals of our business, nor the financial strength that has been a hallmark of our conservative approach towards managing the business. We continue to maintain our focus on executing our strategic growth initiatives, seeking opportunities both within the propane space and through diversification into businesses that meet our strategic criteria and that can supplement or complement our propane business. We remain patient and disciplined in our approach, yet believe we’re well positioned to be opportunistic. In closing, I would like to thank all of our dedicated employees for continuing to remain focused on providing exceptional service to our customer base, while driving operating efficiencies and managing our cost structure. Our operations personnel have done an outstanding job delivering on our customer base growth and retention initiatives throughout the first half of fiscal 2016, continuing to build on our post integration momentum. And as always, we appreciate your support and attention this morning. I would now like to open the call up for questions. John, can you help us with that please? Question-and-Answer Session Operator [Operator Instructions]. And first we will go to the line of Brian Brungardt with Stifel. Please go ahead. Brian Brungardt Just curious if you have any updates regarding the potential pool of acquisition targets, given number of energy companies are now at least appear to be willing to sell non-core assets? Mike Stivala I think the M&A market is going to really develop over the next 12 to 18 months as the effects of lower for longer commodity environment continued to take shape. Obviously, the credit markets, the equity markets have been a challenge for those that need to raise capital. So as you’re seeing, Brian, as well as we do a lot of companies are beginning to seek alternatives to raise capital and we think that bodes well for us as opportunities can come out of that process. So I think there are opportunities ahead, the next 12 to 18 months will tell us a lot. Brian Brungardt Lastly, as it relates to distribution and I appreciate the longer-term viewpoint taken by you guys, but how should we think about the sustainability of the current distribution, given seasonality of cash flows and the impact on the — with your credit facility covenants? Mike Stivala I think look, Brian, I said it in my remarks, this is a short-term weather-driven event, okay? If you look back just six months ago, we ended the fiscal year of 2015 with leverage around 3.7 times and very strong coverage. So we’re only six months removed from that and that was in line with our leverage following our leverage targets, following the integration of Inergy Propane. So, yes, when you look at our trailing 12 of March, our leverage appears elevated relative to a more normal scenario as of the end of 2015. But I think that as we said, it’s all of a short-term weather-driven scenario which we can point to. So as we get out of the heating season now, the back half of the year becomes a little bit more predictable and as we enter the first quarter of next year, all you need is a little bit of improvement in weather and you’ll see an improvement in those metrics. So for us, we’ve been through these scenarios before 2012, it was the previous record warm. The business is built for these types of environments where we can flex our expense base as needed, as well as to ensure that we have adequate liquidity to provide the kind of protection to the sustainability of the distribution. So I think, as evidenced by the fact that we haven’t even needed to borrow under our working capital line to help fund this year’s heating season should give the comfort of the strength of our liquidity and financial position to continue to withstand this kind of an environment and as weather normalizes, we’ll get back to the type of metrics that we were able to see in 2015. Operator [Operator Instructions]. And allowing a few moments, no further questions coming in. Mike Stivala All right, great. John, thank you for your help and thank you all for joining us today and we’ll see you at the end of our third quarter. Operator Ladies and gentlemen, this conference is available for replay. It starts today at 11:00 AM Eastern Time and will be going until tomorrow at midnight May 6. You can access the replay at any time by dialing 800-475-6701 and the access code 391794. That number again, 1-800-475-6701 with the access code 391794. That does conclude your conference for today. Thank you for your participation. You may now disconnect. Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) 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5 Mutual Funds To Ride Solid Service Sector Growth This Spring

Even though manufacturers and energy producers have been adversely affected this year, service companies continue to expand at an encouraging pace. The ISM non-manufacturing index touched its highest level this April, while another indicator, the Markit Services PMI, outstripped the initial expectation. The pickup in service sector activities signaled that the U.S. economy has negotiated the rough winter patch and is more likely to hit stronger growth this spring. In this scenario, investing in mutual funds having significant exposure to the service industry will be a prudent choice. Upbeat ISM Service Index The index for nonmanufacturing economic activity increased to 55.7 in April from 54.5 in March, its highest level since December, according to the Institute for Supply Management. Thirteen of the 18 service sectors tracked by the ISM expanded in April. The index covers almost everything from restaurant meals, dry cleaning, doctor’s visits, haircuts to tax preparations. The reading above 50 indicates that the sector’s activity including employment and prices moved north. The employment index climbed to 53.0 in April from 50.3 in March, while the price index spiked to 53.4 in April from 49.1 in March. Prices increased for the first time in the last three months. Meanwhile, the business activity index dipped to 58.8 in April from 59.8 in the previous month. However, the new orders index rose to 59.9 in April from 56.7 in the prior month. With a jump in orders it is expected that business activities will improve too from the next month. The ISM index extensively surveys a considerable number of purchasing executives spanning the length and breadth of the service sector. According to Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee, most of the respondents’ comments reflected “optimism about the business climate and the direction of the economy.” Markit Services PMI Revised Up A separate indicator also showed that the service sector picked up steam last month. Markit Economics’ services purchasing managers index rose to 52.8 in April from a flash reading of 52.1. The index came in at 51.3 in March. April’s data was slightly higher than the first quarter’s average, while overall business confidence strengthened. This showed steady rise in service activities, especially from February’s 28-month low, which was mostly due to disruptions in weather conditions. Chris Williamson, chief economist at Markit said that the Markit’s survey indicated that the economy continued “to pick itself up after the stagnation seen in February.” Growth in Services Picks Up: 5 Mutual Funds to Buy The U.S. service sector witnessed stronger growth in April. This showed that the broader economy has gained momentum following a slow start to this year on manufacturing woes. A strong dollar, weak energy prices and slowdown in global demand weighed on the manufacturing sector. Americans continued to spend for services ranging from haircuts to meals. Some of the major nonmanufacturing industries reporting growth in April include Finance & Insurance, HealthCare & Social Assistance, Real Estate, Retail Trade and Utilities. Respondents from the Finance & Insurance field said that “Business is holding steady, revenue is almost as anticipated and costs are lower which is helping to maintain current profitability.” When it came to HealthCare & Social Assistance, respondents said “We expect our business condition to improve in Q2 as compared to Q1. Typically, Q1 is our slowest period and business activity picks up later through the year.” Respondents from the other aforementioned industries also sounded optimistic. Given this, it will be wise to invest in mutual funds from such nonmanufacturing industries. We have selected five such mutual funds exposed to the service sector that have given impressive 3-year and 5-year annualized returns, boast a Zacks Mutual Fund Rank #1 (Strong Buy) or #2 (Buy), offers a minimum initial investment within $2,500 and carry a low expense ratio. Funds have been selected over stocks, since funds reduce transaction costs for investors and also diversify their portfolio without the numerous commission charges that stocks need to bear. The Franklin Mutual Financial Services A (MUTF: TFSIX ) invests a major portion of its assets in securities of financial services companies. TFSIX’s 3-year and 5-year annualized returns are 8.8% and 7.7%, respectively. Annual expense ratio of 1.41% is lower than the category average of 1.54%. TFSIX has a Zacks Mutual Fund Rank #2. The Fidelity Select Health Care Services Portfolio (MUTF: FSHCX ) invests the majority of its assets in securities of companies engaged in the ownership or management of nursing homes, health maintenance organizations and other companies specializing in the delivery of health care services. FSHCX’s 3-year and 5-year annualized returns are 17.7% and 12.8%, respectively. Annual expense ratio of 0.79% is lower than the category average of 1.35%. FSHCX has a Zacks Mutual Fund Rank #1. The SSgA Clarion Real Estate Fund (MUTF: SSREX ) invests a large portion of its assets in real estate investment trusts. SSREX’s 3-year and 5-year annualized returns are 8.1% and 10.2%, respectively. Annual expense ratio of 1% is lower than the category average of 1.28%. SSREX has a Zacks Mutual Fund Rank #1. The Putnam Global Consumer Fund A (MUTF: PGCOX ) invests a major portion of its assets in securities of companies in the consumer staples and consumer discretionary products and services industries. PGCOX’s 3-year and 5-year annualized returns are 9.6% and 9.8%, respectively. Annual expense ratio of 1.26% is lower than the category average of 1.43%. PGCOX has a Zacks Mutual Fund Rank #2. The Fidelity Telecom and Utilities Fund (MUTF: FIUIX ) invests the majority of its assets in securities of telecommunications services companies. FIUIX’s 3-year and 5-year annualized returns are 7.8% and 10.2%, respectively. Annual expense ratio of 0.74% is lower than the category average of 1.25%. FIUIX has a Zacks Mutual Fund Rank #2. Link to the original post on Zacks.com