| Fund Company | CIBC Asset Management |
| Fund Type | U.S. Small / Mid Cap Equity |
| Rating | D |
| Style | Blend |
| Risk Level | Medium High |
| Load Status | No Load |
| RRSP/RRIF Suitability | Fair |
| TFSA Suitability | Fair |
| Manager | David Daglio since August 2010 |
| MER | 2.79% |
| Code | CIB 495 – No Load Units |
| Minimum Investment | $500 |
Analysis: Despite a rough start in 2011, the performance has definitely improved since the new management team at the Boston Company Asset Management took over the fund in August 2010. For the three years ending October 31, the fund gained 17.8%, finishing in the top quartile. Volatility has also been higher than both the benchmark and the average of other U.S. small cap funds.
In managing the fund, the Boston Company uses a team oriented, high turnover approach in managing the fund. Stocks are selected using a proprietary approach that looks for companies where they expect to see an increase in revenues, earnings and cash flows. Valuation is a consideration, and looks to invest in companies that are trading below their estimate of intrinsic value.
They are benchmark agnostic, instead focusing on protecting investors capital. They work to avoid stocks or sectors where they see a high level of downside risk. Because of this approach, the portfolio will look much different from its benchmark. It is overweight in financial services, industrials and technology, while maintaining an underweight exposure to real estate, materials and utilities.
I have been somewhat impressed by the recent turnaround in the performance of this fund. That said, it still has a long way to go before it will be one of my favourites. I believe that there are more attractive U.S. focused small cap funds around including Fidelity, Trimark and TD. That said, if you are currently invested with CIBC and looking for some small cap exposure, this fund should serve you well.