One of the things I like about this fund is manager Dan Dupont is disciplined and sticks to his value focused style. He runs a portfolio that looks nothing like its benchmark, and in a rarity for a Canadian focused fund, has no exposure to Canadian banks or golds. It is also significantly underweight in energy. The result is a return stream that is much different from the index, which helps explain why it has struggled to keep up with its peers so far this year, as energy and materials have been rallying sharply. However, when these sectors hit the skids in September, it was able to outperform both the index and the overwhelming majority of its peers.
Over the long term, I believe that the value focused style will result in above average returns with lower risk. However, I also expect there to be periods where it dramatically underperforms. As a result, if you are at all uncomfortable with the potential for significant underperformance for a quarter or two, you may want to consider another fund that is more closely aligned with the index. However, if you are looking for the potential for above average risk adjusted returns, this is a fund that is definitely worthy of consideration.