The Munro Fund seeks to deliver the total return of the FTSE 350 index through its unique process of creating a tracker fund using forecast gross cash dividends to construct the portfolio.
This fund is unique. To explain how and why it is we have created some quick guides with links in these four boxes and a link to a podcast. For a more detailed explanation use the menu bar above.
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Active Funds Don't Always Deliver There is a two out of three chance that any active fund, managed by stock pickers, will fail to match the returns of its benchmark over a one year time period. That makes choosing one difficult and time consuming, with no guarantee you will get better than market returns. |
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Passive Funds Don't Always Deliver Either An alternative is to use passive trackers to get the index returns, except that they don't deliver those either because of fees and the way they are managed, using price alone to construct the portfolio. |
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The Munro Fund uses a unique process to track the forecast gross cash dividends from the FTSE 350 removing share price and opinion from the portfolio construction process. This increases reliability and is ideal for long-term, low-risk equity investors. |
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Since Munro Fund launch in September 2007 performance has been pleasing, delivering the returns of the index at low risk. It has come closer to achieving, and beating index returns than many conventional passive trackers. In this time the fund has not been fully invested in the index due to size and this may have an impact on returns possible.
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Rob Davies founded the Munro Fund and is a former journalist for The Motley Fool financial website. Listen to him here being interviewed by the Fool's David Kuo.
The Psy–Fi Blog takes a sideways Look at Psychology and Finance. |
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Note that all graphics are for illustration only and that detailed fund performance can be accessed by following this link.