Mutual Funds / ETFs Update
I have to admit that I have been a fan of the QV managed small cap funds for as long as I've been in the business. The managers, Ian Cooke and Joe Jugovic look for high quality businesses run by strong management teams that are trading at attractive valuations.
Recommended by David Paterson.
I have been a fan of the QV managed small/mid cap funds for as long as I?ve been in the business. The current management team of Ian Cooke and Joe Jugovic look for high quality businesses run by strong management teams that are trading at attractive valuations.
Performance, particularly over the long term has been excellent. For the three years ending August 31, it has gained an annualized return of more than 23%, leaving most of its competitors in the dust. Even more impressive, the fund?s volatility is about two-thirds that of the average small cap fund, and it has unbelievable downside protection.
If I had to pick a fault with the fund, it is that it is quite expensive with an MER of 2.94%. This is well in the upper half of its peer group. Another issue to consider is the fund is much bigger than it used to be, meaning that the managers may have more difficulty in implementing their process with the same level of effectiveness. This mandate has been capped to institutional investors, and it may be closed to retail investors at some point in the future. Until then, this remains one of the best small cap offerings available.
Fund Company: IA Clarington Investments Inc.
Minimum Investment: $500
RRSP/RRIF Suitability: Excellent
Interactive Performance Chart