Morningstar's Gregg Wolper, editorial director and senior mutual fund analyst, looked into two young funds yesterday and gave his insight why these funds are struggling in the market.

The TCW International Small Cap, PMed by Rohit Sah, was introduced to the market March of 2011. This fund's AUM amounts to $28.8 million, which Wolper says is small fo a fund that has been in the market for more than a year. Seafarer Overseas Growth Fund captained by Andrew Foster has $5.3 million assets. Both find managers have impressive track records, but the history of these PMs, as it appears, are not enough selling points.

Wolper thinks the TCW fund does not attract as much investors as the rest because funds that are aggressive are difficult to sell, and because the fund suffer big losses when it was launched in March 2011 Until the year ended.

Seafarer on one hand, lacks a popular firm name to support it, therefore the name is not very familiar to investors. Foster, an esteemed Asian specialist, offered a fund that is not just focused in Asia.

According to Wolper, it is understandable why investors overlook these young funds. Though these funds are less popular, Wolper says these funds are worth considering because they use strategies that other funds do not offer.  

Edited by: HFD


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