New Covenant Balanced Growth Fd (NCBGX) Fund Overview

New Covenant Balanced Growth Fd (NCBGX) Financial Services Profile

New Covenant Balanced Growth Fund (NCBGX) offers a diversified investment approach, primarily allocating assets between its Growth and Income Funds. With a focus on capital appreciation and risk mitigation, NCBGX appeals to investors seeking a balanced portfolio within the asset management sector, demonstrating a notable dividend yield of 9.11%.

What Is the Investment Thesis for NCBGX?

With a dividend yield of 9.11%, NCBGX offers an attractive income component. The fund's strategic allocation between the New Covenant Growth Fund and Income Fund allows it to participate in equity market upside while mitigating downside risk through fixed-income exposure. The fund's beta of 0.92 suggests lower volatility compared to the overall market. Ongoing: The fund's ability to adapt its asset allocation between the Growth and Income Funds based on market conditions is a key value driver. Upcoming: Continued growth in assets under management (AUM) could lead to economies of scale and improved fund performance.

Based on FMP financials and quantitative analysis

NCBGX Key Highlights

Market capitalization of $0.36 billion indicates a mid-sized fund with potential for growth.

• Profit margin of 11.6% reflects efficient management and profitability.
• Gross margin of 27.6% demonstrates the fund's ability to generate revenue above its direct costs.
• Beta of 0.92 suggests lower volatility compared to the overall market, appealing to risk-averse investors.
• Dividend yield of 9.11% provides a significant income component, making it attractive to income-seeking investors.

Who Are NCBGX's Competitors?

NCBGX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NCBGX's Key Strengths?

Diversified asset allocation strategy.

• Focus on capital appreciation with reduced risk.
• Established track record of managing balanced portfolios.
• Attractive dividend yield of 9.11%.

What Are NCBGX's Weaknesses?

Reliance on the performance of the New Covenant Growth Fund and Income Fund.

• Potential for underperformance compared to more aggressive growth strategies.
• Limited brand recognition compared to larger asset managers.
• Higher expense ratio compared to passively managed funds.

What Are the Key Risks for NCBGX?

Rich valuation — a P/E of 788.26 runs well above the Financial Services sector’s ~17.20x, leaving little room for a miss.

• Economic downturns and market volatility could negatively impact fund performance.
• Increased competition from other asset managers could lead to lower fees and reduced market share.
• Changes in investor preferences could lead to outflows from the fund.
• Reliance on the performance of the New Covenant Growth Fund and Income Fund.
• Interest rate hikes could negatively impact the performance of the Income Fund.

What Are NCBGX's Competitive Advantages?

• Established track record of managing balanced portfolios.
• Access to the investment expertise of the New Covenant Growth Fund and Income Fund managers.
• Diversified asset allocation strategy that mitigates risk.

What Does NCBGX Do?

New Covenant Balanced Growth Fund (NCBGX) is designed to provide investors with capital appreciation while mitigating risk compared to a portfolio solely composed of common stocks. The fund achieves this objective by strategically investing in two primary components: the New Covenant Growth Fund and the New Covenant Income Fund. A majority of the fund's assets are typically allocated to the Growth Fund, reflecting a focus on long-term capital appreciation. The remaining portion is invested in the Income Fund, offering a steady stream of income and further diversification. The fund maintains a flexible allocation strategy, with the Growth Fund allocation ranging from 45% to 75% of net assets, with a neutral position around 60%. This flexibility allows the fund to adapt to changing market conditions and adjust its risk profile accordingly. The balance is held in the Income Fund or in cash or cash equivalents, providing liquidity and stability. This blended approach seeks to capture growth opportunities while managing downside risk, making it an option for investors seeking a balanced investment strategy. The fund's investment strategy is geared towards investors who want exposure to both equity and fixed-income markets through a single investment vehicle. By investing in its own family of funds, NCBGX aims to streamline operations and provide investors with a cost-effective way to achieve diversification.

What Products and Services Does NCBGX Offer?

• Invests primarily in shares of the New Covenant Growth Fund.
• Invests a portion of its assets in the New Covenant Income Fund.
• Seeks capital appreciation with less risk than a portfolio of only common stocks.
• Allocates between 45% and 75% of its net assets to the Growth Fund.
• Invests the balance of its net assets in the Income Fund or cash equivalents.
• Provides a diversified investment approach through a single fund.

How Does NCBGX Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• Allocates assets between the New Covenant Growth Fund and Income Fund to achieve its investment objectives.
• Adjusts asset allocation based on market conditions and investment outlook.

What Industry Does NCBGX Operate In?

The asset management industry is characterized by intense competition and evolving investor preferences. Funds like New Covenant Balanced Growth (NCBGX) operate in a market driven by factors such as economic growth, interest rates, and investor sentiment. The industry is experiencing a shift towards passive investing and increased demand for sustainable investment options. NCBGX's balanced approach positions it to cater to investors seeking diversification and risk management in a dynamic market. Competitors such as AOVIX and BGNMX offer similar balanced strategies, requiring NCBGX to differentiate itself through performance and service.

Who Are NCBGX's Key Customers?

• Individual investors seeking capital appreciation with reduced risk.
• Retirement savers looking for a diversified investment option.
• Financial advisors seeking balanced investment solutions for their clients.

Return on equity for New Covenant Balanced Growth Fd stands at 11.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 9.1%, showing how much profit it generates from its asset base. Its free cash flow yield is 0.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.91 indicates the company holds enough short-term assets to cover its near-term obligations.

New Covenant Balanced Growth Fd's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 58.68 places it in the safe zone, indicating low near-term bankruptcy risk.

NCBGX Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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