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1 December, 2008Size will matter in Islamic banking
1 December, 2008ROADTEST
Investors Mutual Future Leaders Fund
Long-standing small cap fund, battered but well-placed?
Performance
Like all small-cap funds it’s been hammered this year: down 33.3% in the year to October 31. But that’s actually one of the best in the industry: some similar funds have more than halved over the same period. Over the longer term, it is still comfortably in the black: 7.38% a year over five years.
Holdings
Top holding as of October 31 was Amalgamated Holdings, the entertainment, hospitality and leisure group, followed by one-to-one communications group Salmat, and Energy Developments.
Experience
Investors Mutual is often seen as one of the founders of the boutique movement in Australia, following its establishment in 1998. Anton Tagliaferro, who leads the investment team, is a well-known and experienced manager.
Fees
Investment costs are 0.974% including GST, but there is a 15% performance fee where returns beat the benchmark – although since that’s only payable once any negative returns have been regained, it’ll be a while before that kicks in again.
Gripes
For a long while in the bull market this fund was lagging its benchmark – although just this month, it is back ahead of it again when measured since inception. Investors Mutual is a value manager, so logically it ought to lag a touch in the good times and do better in the bounce from the bad ones.
Verdict
Small caps have been a hideous place to be for a year and they might stay that way for a while longer. But when they bounce, they tend to really bounce.
