(September 6 – 18:30 ET) – Value funds are on the comeback trail, according to Jill Taylor, senior mutual funds analyst at Merrill Lynch Canada Inc.

Taylor points out that growth funds dominated fund performance tables last year, yet in the year-to-date value funds have been returning to prominence. “Well-known value funds are once again in the upper echelon of performance,” she says.

With value funds on the rebound, Taylor highlights the funds preferred by Merrill, pointing to the AGF International Value Fund. “Using extensive fundamental analysis, the Brandes team is looking for sound businesses with minimal financial risk which they believe to be trading at a significant discount to the value of their firm?s assets,” notes Taylor.

Merrill also likes the Cundill Value Fund. It notes that the contents of the portfolio may be obscure but that Peter Cundill and his team has been very successful. “By purchasing companies’ stocks at what the managers believe to be discounted levels, the Cundill team creates a relatively low-risk portfolio since the stocks are already at depressed levels. The investment team invests patiently and is willing to invest early if they believe they will be sufficiently rewarded for their patience,” adds Taylor.
-IE Staff