Investment and Retirement
ON THE RADAR
AN ASTRA FUND THAT STANDS OUT IN THE CURRENT CONTEXT
ASTRA Canadian Small Cap Equity
Fund Manager: Fiera Capital Inc.
Benchmark: S&P/TSX Small Cap Index
Fund category (CIFSC): Canadian Small/Mid Cap Equity
The fund's returns have consistently outperformed the benchmark for periods from 3 months to 5 years.
ASTRA CANADIAN SMALL CAP EQUITY FUND – PERFORMANCE AS AT JULY 31, 2014
|
3-MONTH |
1-YEAR |
2-YEAR |
3-YEAR |
5-YEAR |
10-YEAR |
ASTRA Canadian Small Cap Equity Fund |
6.9% |
40.6 % |
28.7% |
12.0% |
18.5% |
7.3% |
Benchmark: S&P/TSX Small Cap Index* |
2.5% |
27.7 % |
15.0% |
3.0% |
14.1% |
7.7% |
Value added |
4.4% |
12.9% |
13.7% |
9.0% |
4.4% |
-0.4% |
*S&P/TSX Small Cap Index since January 1, 2013, previously weighted BMO Small Cap Index (e.g. income trusts).
For the first half of 2014, the value added stemmed primarily from security selection, while the sector mix detracted from performance (overweight in Information Technology and Consumer Discretionary). In 2013, the fund posted a value added of 22.2% compared to its benchmark.
WHY INVEST IN THIS FUND?
- To take advantage of security selection based on fundamental research that is the result of more than 300 management team meetings per year.
- To improve the diversification of a portfolio when added to large-cap equities.
- To increase the potential for higher returns generated by smaller companies with high sales growth potential compared to large-cap equity funds.
- Between 1927 and 2007, the annual performance of small-cap companies averaged 12%. Their long-term performance is superior to large-cap stocks, which recorded an average annual return of 10% during the same period.*
- Several successful large companies started out as small-cap companies. They are the great companies of tomorrow.
*An Ibbotson Associates study