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Top performing U.S. mutual fund focuses on unloved real estate
The actual fund being profiled is a foreign real estate fund, FFIRX. I think the article's use of "U.S. mutual fund" in the headline is a little misleading.
Also not really mentioned in the article is that foreign real estate in general has had a really good year. Vanguard's Global ex-U.S. Real Estate Index Fund VGXRX is up over 30%. FFIRX is still beating the index by a large margin, but a lot of its return is still due to being in the right sector at the right time.
Reply to @claimui: Correct! - A U.S. domiciled fund company, operating the "Forward International Real Estate Fund" (KIRAX). YTD +47.4%. 1-YR +53%. I agree the article title is misleading. Generally post titles "as is" - but in this case should have added an explanatory note so people didn't waste their time accessing the article only to be disappointed.
Reply to @hank: Forward is a pretty big firm from what I remember. I used to invest in their International Small Cap fund before there were so many options. My general impression is that their fees are too high, even on their no-load classes (note that KIRAX is a front-loaded class while I think FFIRX is the no-load class), and this may detract on their performance since it tends to be streaky.
Take a look at this Morningstar data page for Forward Funds: http://quicktake.morningstar.com/fundfamily/forward-funds/0C00001IMM/snapshot.aspx Under "Best 5-Year Relative Performance" -- okay you have one fund that is in the top 4% (excellent!) but the next highest performer from Forward is the KIRAX fund profiled in the article, which is only in the top 40% over the past 5 years despite its amazing performance this year.
So yes, KIRAX is having a good year, but if you are interested in this fund then you should probably take a look at other international real estate funds. I personally like Vanguard's VGXRX for the low expenses (note there is a purchase/redemption fee) but do not hold it because of its significant tax burden. I think Fidelity's FIREX is also pretty popular. (Note that this asset class did really, really bad in 2008. I had another international real estate fund at the time and it dropped 70 or 80%, *shudder*.)
Reply to @hank: Sorry, I was just offering my personal thoughts about the fund and this asset class and it was not intended to be directed at you. Apologies if I suggested otherwise. I do appreciate your bringing up the article and fund for discussion, regardless of whether you endorse it or not.
Comments
Also not really mentioned in the article is that foreign real estate in general has had a really good year. Vanguard's Global ex-U.S. Real Estate Index Fund VGXRX is up over 30%. FFIRX is still beating the index by a large margin, but a lot of its return is still due to being in the right sector at the right time.
Here's a article on Forward Funds, based in SanFrancisco, CA. They sound intriguing.
http://www.nytimes.com/1998/10/11/business/mutual-funds-report-funds-watch-just-how-low-can-fees-go.html
Regards, hank
Regards,
Ted
M*Forward Mutual Fund Family: http://quicktake.morningstar.com/fundfamily/forward-funds/0C00001IMM/fund-list.aspx
Take a look at this Morningstar data page for Forward Funds: http://quicktake.morningstar.com/fundfamily/forward-funds/0C00001IMM/snapshot.aspx
Under "Best 5-Year Relative Performance" -- okay you have one fund that is in the top 4% (excellent!) but the next highest performer from Forward is the KIRAX fund profiled in the article, which is only in the top 40% over the past 5 years despite its amazing performance this year.
So yes, KIRAX is having a good year, but if you are interested in this fund then you should probably take a look at other international real estate funds. I personally like Vanguard's VGXRX for the low expenses (note there is a purchase/redemption fee) but do not hold it because of its significant tax burden. I think Fidelity's FIREX is also pretty popular. (Note that this asset class did really, really bad in 2008. I had another international real estate fund at the time and it dropped 70 or 80%, *shudder*.)
Posting of fund-related articles should be construed neither as an endorsement nor as an intent to purchase.
Regards, hank