Fund Evaluator:

Sarofim Equity Overview

Sarofim Equity (SRFMX) is an actively managed U.S. Equity Large Blend fund. Sarofim launched the fund in 2014.

The investment seeks long-term capital appreciation consistent with the preservation of capital; current income is a secondary goal. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. It invests primarily in the common stock of U.S. and foreign based companies listed on U.S. exchanges, but the fund may also invest up to 25% of its net assets in foreign-based companies listed on foreign exchanges, either directly or through American Depositary Receipts ("ADRs"). It focuses on companies with market capitalizations exceeding $5 billion at the time of purchase.

About Sarofim Equity (SRFMX)

There are 3 members of the management team with an average tenure of 12.63 years: Reynaldo Reza (2014), Alan Christensen (2014), W. Gentry Lee (2014). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Sarofim Equity has 43 securities in its portfolio. The top 10 holdings constitute 55.6% 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.

Sarofim Equity is part of the Equity global asset class and is within the U.S. Equity fund group. Sarofim Equity has 13.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 86.0%. There is 13.7% 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). Sarofim Equity has 0.3% of the portfolio in cash.

Assets Under Management

The fund has $69 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.

SRFMX 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 Sarofim Equity expense ratio is above average compared to funds in the Large Blend category. Sarofim Equity 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. Sarofim Equity has a portfolio turnover rate of 12%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of August 2026, Sarofim Equity returned 2.1%, which earned it a grade of C, as the Large Blend category had an average return of 2.1%. 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.

Sarofim Equity has a trailing yield of 0.37%, which is below the 0.55% category average. The fund normally distributes its income quarterly 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.

Sarofim Equity Grades

Year to date, the fund has returned 6.5%, 5.1 percentage points worse than the category, which translates into a grade of F. The fund has returned 11.1% over the past year (grade of F), 12.2% over the past three years (grade of F) and 6.7% per year over the past five years (grade of F) and 12.9% per year over the past 10 years (grade of D).

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