The Robeco WPG Small Cap Value Fund (WPGTX) is a European managed, Maryland incorporated, 2 star Morningstar ranked mutual fund with a minimum initial purchase of $100,000.00 and .01 cent per share annual dividend. The share price has ranged in value from $6.00-$30.00 over its 35+ year life time and the fund specializes in small capitalization U.S. investments and has a an asset value in the tens of millions of dollars.
I: Robeco WPG Small Cap Value Fund: Fund management
The solvency of the Robeco WPG Small Cap Value Fund is stabilized by Robeco Investment Managements subsidiary relationship with Robobank, a credible and established Dutch financial services firm. Robeco Investment Management has 6 offices located in the United States including New York, Boston, Los Angeles, and San Francisco.
The Robeco fund family consists of several other managed mutual funds including a non-diversified climate sustenance fund (SSCIX), 2 Mid Capitalization funds (BPMIX) and (BPMCX), 2 All Cap funds (BPAIX) and (BPAVX) and a few other funds. (biz.yahoo.com)
II: Robeco WPG Small Cap Value Fund performance
Robeco WPG Small Cap Value Fund has a 5 year return ranking near the 60th percentile of all funds in the category, and as mentioned above a 2 star MorningStar rating meaning the fund is ranked by the organization as no higher than the 32.5th percentile in its mutual fund category. The MorningStar, star ratings specifically refer to investment risk and return of the funds but do not delve quite too deeply into the differences and nuances between similar mutual funds and the affects on performance those differences can have. (quickoverview.com)
Since the WPGTX fund invests primarily in Small Cap. U.S. businesses, i.e. companies with market capitalization under $1 billion U.S., the risk of volatility in the fund’s value is unsurprising. This is so as Small Capitalization companies are notorious for their ups and downs, and this is reflected in the WPGTX fund history which has experienced down years approximately 33% of its existence.
III: Competitive positioning: Robeco WPG Small Cap Value Fund
Advantages of the Robeco WPG Small Cap Value Fund include no load fees and an expense ratio around 1.61% which is above average for the funds competitive grouping (finance.yahoo.com) The fund has been in existence since 1972, and is owned by a financially stable bank possibly making WPGTX insolvency or bankruptcy a lower risk in that sense. The fund also has an above average turnover, meaning it may not take a long-term approach to all its investing activities. This indicates an active management but also a potentially less predictable performance and/or share price forecast. Similar funds in this category include the following:
• American Century Small Cap Value Investor Fund (ASVIX)
• Artisan Small Cap Value Fall (ARTVX)
• Fidelity Small Cap. Value Fund (FCPVX)
• Keely Small Cap. Value Fund (KSCVX)
• Allianz NFJ Small Cap Value D. (PSVIX)
Summary:
The Robeco WPG Small Capitalization Value Fund is an above average risk, low to moderate long-term return fund that invests in smaller capitalized companies within the United States. The fund has demonstrated far better performance in bull markets because of its investment status, and using its performance history as an indicator. The fund is volatile and lower than average in risk and return comparison(s) with similar mutual funds, of which there are hundreds to choose from. The fund has good ownership in terms of financial stability and experience in the industry, which may be part of the reason for the long duration of the fund. Investment in this type of fund can be considered aggressive and higher risk therefore might not be the best fund to invest in near retirement unless the investor has ample discretionary funds and/or a low adversity to risk.
Sources:
1. https://www.robeco-usa.com/us/eng/iw/content/ic/value_equities.jsp
2. http://www.rabobank.com/content/
3. http://moneycentral.msn.com/detail/stock_quote?ipage=qd&symbol=WPGTX
4. http://biz.yahoo.com/p/fam/robeco_investment_funds.html
5. http://finance.yahoo.com/q/pm?s=WPGTX
6. http://quicktake.morningstar.com/DataDefs/FundRatingsAndRisk.html
7. http://www.quickoverview.com/overviews/morningstar-ratings-overview.html