Multi-cap U.S. growth stocks posted solid second-quarter gains. Stocks advanced despite the troubling environment characterized by escalating violence in various corners of the globe, including Russia's seizure of Crimea; slowing growth and credit concerns in China; mixed U.S. economic data; and, most recently, an eruption of sectarian violence in Iraq. Large- and mid-cap stocks outperformed small-caps, although growth and value shares generated similar returns. Within the large-cap Standard & Poor's 500 Index, energy was far and away the strongest-performing sector. Utilities and information technology also delivered impressive results. The laggard was financials, with a return of just over 2% for the period.
The New America Growth Fund returned 3.68% in the quarter compared with 5.23% for the S&P 500 Index and 3.39% for the Lipper Multi-Cap Growth Funds Index. For the 12 months ended June 30, 2014, the fund returned 28.13% versus 24.61% for the S&P 500 Index and 27.30% for the Lipper Multi-Cap Growth Funds Index. The fund's average annual total returns were 28.13%, 18.35%, and 8.98% for the 1-, 5-, and 10-year periods, respectively, as of June 30, 2014. The fund's expense ratio was 0.81% as of its fiscal year ended December 31, 2013.
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We want to own companies that can grow organically and generate above-average earnings and cash flow growth. Overall, we emphasize growth companies, and we are especially attracted to firms that are not dependent on vigorous economic expansion to perform well. The information technology and consumer discretionary sectors remain the portfolio's largest allocations, accounting for about half of total net assets. Compared with our benchmark, we have small allocations to financials, energy, and consumer staples stocks, and no exposure to telecommunication services and utilities, which we believe will have a difficult time generating above-average revenue and earnings gains.
We remain optimistic about the long-term prospects for multi-cap domestic growth companies. However, we don't expect to see a repeat of the expansion in price/earnings multiples that drove stocks last year. Stocks are more likely to trade in sync with corporate earnings growth, which we think will continue at a moderate pace through the rest of the year. In our view, valuations remain reasonable from a historical perspective, and we believe that the bull market of the past five years has further room to run. As always, we are focused on long-term returns. We will attempt to take advantage of market volatility and investor uncertainty to buy high-quality growth companies that can deliver value by deploying cash wisely.