Q. I have money invested in Van Kampen Comstock “A” in my individual retirement account. I have about 25 years until retirement. Is this fund a good long-term investment?
J.B., via the Internet
A. This quality fund has a contrarian mind-set.
It takes stocks apart on a case-by-case basis to determine their real potential, buys them when they’re depressed and then patiently watches them rebound. It’s willing to make big bets on unpopular sectors.
For example, the fund loaded up on Philip Morris when tobacco companies were at a low point in 1999 due to fears of ongoing tobacco litigation. Most investors had wanted no part of that stock, but it jumped 105 percent in price the very next year.
It usually has significant holdings in utility stocks, not exactly considered a hot commodity by most folks and generally at risk in periods of high interest rates.
But while it does have an occasional off year, its overall track record is strong.
The $4.23 billion Van Kampen Comstock “A” fell 1.69 percent over the past year, but still ranked in the upper half of large value funds. Its three-year annualized return of 12 percent puts it in the top 4 percent of its peers.
“Lead manager Bob Baker is very smart and never abandoned his contrarian approach, even when growth stocks were excelling,” said Kelli Stebel, analyst with the Morningstar Mutual Funds investment advisory.
However, the fund is unlikely to excel when growth strategy rules the stock market, she said. The fund was created in 1968; Baker joined in 1994. Its largest holdings are in energy, technology, financials and utilities.
Van Kampen Comstock “A” requires a 5.75 percent load, or sales charge, and $1,000 minimum initial investment.
Q. My broker left his brokerage firm and went to another. Without my knowing it, he took my account with him. I was happy at the prior brokerage firm. How do I switch my account back to the old place?
A.P., Chicago
A. A client generally opens an account with a brokerage firm by signing a written agreement with the firm, not the broker.
When a broker changes firms, he calls up clients, says he’s making a switch and invites those clients to join him. If they wish to do so, he sends them new account agreements to be signed.
“I’m hard-pressed to understand how the individual account executive switched firms and took the account along,” said Mark Carlin, an arbitration attorney in Washington, D.C. “However, unless you had an agreement with the new firm or an agreement with a particular broker, there’s no reason to think you can’t simply return to the original firm.”
Write a letter to the manager in charge at that new brokerage firm requesting that your account be returned to the initial firm. You could also begin the return process with the old firm.
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Andrew Leckey answers questions Sunday in Business and Tuesday in Your Money. Address inquiries to Andrew Leckey, P.M.B. 184, 369-B Third St., San Rafael, Calif. 94901-3581, or by e-mail at andrewinv@aol.com.
