Fund Evaluator:

Destinations Large Cap Equity Z Overview

Destinations Large Cap Equity Z (DLCZX) is an actively managed U.S. Equity Large Blend fund. Destinations Funds launched the fund in 2018.

The investment seeks long term capital appreciation. The fund will invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of large capitalization companies. It invests primarily in common and preferred stock, rights or warrants to purchase common or preferred stock, interests in Real Estate Investment Trusts (REITs), securities convertible into common or preferred stock such as convertible preferred stock, bonds or debentures, and other securities with equity characteristics. The fund may also invest in futures contracts for speculative or hedging purposes.

About Destinations Large Cap Equity Z (DLCZX)

There are 20 members of the management team with an average tenure of 3.30 years: John Bailer (2019), Brian Ferguson (2019), David Ricci (2023), Frederick Konopka (2025), Timothy Holland (2022), Daniel Mahr (2025), Matthew Moran (2021), Daniel Johnson (2021), John Lewicke (2025), Juan Acevedo (2023), Lisa Hobart (2023), John Law (2023), Brian Storey (2022), Damien Zhang (2025), Arun Sharma (2026), Keith Howell Jr. (2019), Andrew Goins (2023), John Hoffmann (2026), Karl Schneider (2023), James Golan (2023). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Russell 1000 TR USD index with a weighting of 100%. Destinations Large Cap Equity Z has 314 securities in its portfolio. The top 10 holdings constitute 32.8% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Destinations Large Cap Equity Z is part of the Equity global asset class and is within the U.S. Equity fund group. Destinations Large Cap Equity Z has 2.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 96.3%. There is 2.8% 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). Destinations Large Cap Equity Z has 0.8% of the portfolio in cash.

Assets Under Management

The fund has $342 million in total assets, which is below the $6 billion average for the Large Blend 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.

DLCZX 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 Destinations Large Cap Equity Z expense ratio is above average compared to funds in the Large Blend category. Destinations Large Cap Equity Z has an expense ratio of 0.70%, which is 14% 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. Destinations Large Cap Equity Z has a portfolio turnover rate of 98%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of July 2026, Destinations Large Cap Equity Z returned 0.0%, which earned it a grade of C, as the Large Blend 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.

Destinations Large Cap Equity Z has a trailing yield of 0.53%, which is below the 0.56% category average. The fund normally distributes its income annually and its capital gains annually.

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.

Destinations Large Cap Equity Z Grades

Year to date, the fund has returned 6.1%, 3.2 percentage points worse than the category, which translates into a grade of F. The fund has returned 12.9% over the past year (grade of F), 16.3% over the past three years (grade of D) and 9.3% per year over the past five years (grade of D).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Destinations Large Cap Equity Z, including its riskiness, submit your email to unlock the rest of the article.