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IWIRX: Disappointment

BenWPBenWP
in Fund Discussions
I am particularly chagrined at IWIRX's bad one-year performance (barely above water), especially given that most world growth stock funds have done pretty well over the same period. Assets are not great, but the fund grew quickly in relative size in 2014 when it got noticed. A glance at the holdings does not reveal a group of companies that strike me as overly innovative. Healthcare holdings are minuscule compared to the benchmark, probably a brake on performance. Cash is reported as practically nil. Anyone else in this fund?

Comments

  • scott
    It has not had good one year performance but has had solid performance otherwise. I'm not thrilled with GAINX right now from same managers.
  • Joe
    I bought IWIRX because of some comments I saw on MutualFundObserver, and liked what I learned about the fund. However I too am dissatisfied and thinking of selling. The fund seems to hold a concentration of old line US large caps to a large extent, not particularly exciting innovators in my opinion, and the returns are lagging a simple index.
  • slick
    I hold it too, I am going to give it time, considering its record prior to this year. I was in WAGTX and it had become inconsistent, primarily on the fact that so many managing the fund had abandoned ship in 2012 to go over to Grandeur Park and I felt its best days were behind them. That is when I switched to IWIRX. One bad year does not make me run, especially since the year isn't over yet, as any fan of Yogi knows:)
  • LLJB
    I hold it as well and I'm not unhappy at all. It's a buy and hold fund (14% turnover) with very small AUM for the kinds of companies it's investing in and a great record. At this point I consider a not so good year as an opportunity to add to it rather than a reason to think about selling. Based on it's history they have a year like this every once in a while but the rest of the time it's been incredibly good.
  • slick
    Just took a peek at the 6/30/15 top holdings for the fund, it looks dramatically different than the previous quarter.

    http://www.gafunds.com/wp-content/uploads/2013/01/global_innovators_fund_fs.pdf


    The annual report should be out shortly, should be interesting.
  • little5beelittle5bee
    thanks, slick...I was thinking of bailing, too, but I think I might add a little.
  • VintageFreakVintageFreak
    We buy a fund because we hear good things about it. Then when it does not meet our expectations we think about selling it.

    Now, nothing wrong with this. We have to make decisions in the PRESENT. Hindsight is always 20/20. Hopefully our decision is objective - whether it is correct or wrong only time and no one else can tell - (a) why we bought the fund, (b) has anything changed.

    If performance was the sole reason we bought the fund, then IMHO we are doomed to repeat history. And is why index proponents think active investors are smoking crack.
  • BenWPBenWP
    The 14% turnover ratio does not jibe with the updated list of holdings, so some explanation from the PMs would be nice.
  • JoJo26
    slick said:

    I hold it too, I am going to give it time, considering its record prior to this year. I was in WAGTX and it had become inconsistent, primarily on the fact that so many managing the fund had abandoned ship in 2012 to go over to Grandeur Park and I felt its best days were behind them. That is when I switched to IWIRX. One bad year does not make me run, especially since the year isn't over yet, as any fan of Yogi knows:)

    Not sure if the above was actually true? Obviously they would've researched some of the companies in the World Innovators portfolio, but none of the GP guys were actually PMs on the strategy... I don't think?
  • slick
    JoJo, I believe many of them were analysts and research staff. Wasatch was always very team focused, gathering some of the best ideas from the group; part of which left for Grandeur. The managers are now the founder and his son. I am sure WAGTX will continue to do well with such a large staff of analysts who are still there, but decided to go to IWIRX for its outstanding long term record, and research methodology.
  • TedTed
    @MFO Members: Short term IWIRX has had it's troubles, but longer-term 3, 5, and 10 years, the fund has been in the 2, 2, and 1 percentile over those periods of time. I recommend holding this fund. U.S. News & World Report ranks it #3 in the (WS) Fund Category.
    Regards,
    Ted
    http://money.usnews.com/funds/mutual-funds/world-stock/guinness-atkinson-global-innovators-fund/iwirx
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