Fund Evaluator:

Cavanal Hill Hedged Equity Income Inv Overview

Cavanal Hill Hedged Equity Income Inv (APLIX) is an actively managed Nontraditional Equity Equity Hedged fund. Cavanal Hill funds launched the fund in 2020.

The investment seeks current income with the potential for long-term capital appreciation with less volatility than the broad equity market. The fund invests primarily in dividend paying equity securities, with at least 80% of its net assets in income generating equity securities and equity-related instruments traded on U.S. exchanges. The advisor includes common stocks and securities convertible into common stocks of companies with any market capitalization and sponsored or unsponsored American Depositary Receipts (ADRs). The fund is non-diversified.

About Cavanal Hill Hedged Equity Income Inv (APLIX)

There are 4 members of the management team with an average tenure of 5.51 years: Brandon Barnes (2020), Scott Phillips (2020), Jacob Johnson (2020), Michael Schloss (2020). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and CBOE S&P 500 BuyWrite Monthly TR USD index with a weighting of 100%. Cavanal Hill Hedged Equity Income Inv has 53 securities in its portfolio. The top 10 holdings constitute 41.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Cavanal Hill Hedged Equity Income Inv is part of the Equity global asset class and is within the Nontraditional Equity fund group. Cavanal Hill Hedged Equity Income Inv has 7.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 91.1%. There is 7.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Cavanal Hill Hedged Equity Income Inv has 1.8% of the portfolio in cash.

Assets Under Management

The fund has $189 million in total assets, which is below the $440 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

APLIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Cavanal Hill Hedged Equity Income Inv expense ratio is high compared to funds in the Equity Hedged category. Cavanal Hill Hedged Equity Income Inv has an expense ratio of 1.35%, which is 2% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Cavanal Hill Hedged Equity Income Inv has a portfolio turnover rate of 18%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 82% for the Equity Hedged category.

Recently, in the month of June 2026, Cavanal Hill Hedged Equity Income Inv returned -1.6%, which earned it a grade of F, as the Equity Hedged category had an average return of -0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Cavanal Hill Hedged Equity Income Inv has a trailing yield of 0.40%, which is below the 0.93% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Cavanal Hill Hedged Equity Income Inv Grades

Year to date, the fund has returned 4.5%, 1.0 percentage points worse than the category, which translates into a grade of D. The fund has returned 14.6% over the past year (grade of B), 11.8% over the past three years (grade of B) and 6.8% per year over the past five years (grade of C).

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