Should I sell my StrategicNova fund?

Zoomer | January 1st, 2006

Question: Around 1995 I had invested some money into the then new and much-heralded O’Donnell Canadian Emerging Growth Fund, managed by Wayne Deans. It has now been named the StrategicNova Canadian Small Cap Fund with a current below par track record. My questions:

1. Do you predict this fund and Canadian small caps will recover generally, or should I consider another fund within this company?

2. Bearing in mind the fund is in my RRSP, could you suggest a more appropriate conservative fund for a 58 year old closing in on retirement? – M.E.S.

Answer:

I’m not impressed by the fund you mention and it will not make the Recommended List in my 2002 Buyer’s Guide to Mutual Funds. However, many other small cap funds have been doing well recently so if that’s what you’re looking for, check around. Among the better performers in the category right now are Beutal Goodman Small Cap, Clarington Canadian Small Cap, CIBC Emerging Company, Ethical Special Equity, Northwest Specialty Equity, Resolute Growth, Saxon Small Cap, Sprott Canadian Equity, and Trimark Canadian Small Companies, so there is a lot of choice.