- Last Ratings Update:11/30/2014
- Price as of 11/30/2014 :$11.12
- Net Assets:$3,984.57 Million
- Peer Rank:23 of 38
- Investment Rating:E+
We rate Central Fund of Canada at E+. This overall rating indicates it is among the top 10% of all closed end funds in its peer group. Negative factors that influence this rating include a well below average total return. The fund may be considered for investors seeking a Sector - Precious Metals strategy.
POSITIVES AND RISKS
Total return ranks well below peers over the last three years. The Central Fund of Canada has returned an annual rate of 2.49% since inception. More recently, the fund has generated a total return of -5.27% in the last five years, -20.59% in the last three years, and -18.17% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 8% of them. It has also outpaced 5% of its competitors on a three year basis and 5% of them over the last year for the period ending 11/30/2014. On a year to date basis, CEF has returned -16.00%.
Downside risk has been above average. CEF has a draw down risk of -53.30%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 27.0%. This fund has experienced excessive volatility in its monthly performance over the last 36 months. As of 11/30/2014, the fund was trading at a price of $11.12, which is 6.2% below its 52-week high of $11.85 and 2.0% above its 52-week low of $10.90.
Low expense ratio helps performance. On total assets of $3.98 billion, CEF maintains a low expense ratio compared to its Sector - Precious Metals peers of just 0.32% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As CEF is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Central Fund of Canada has been managed by Philip M. Spicer for the last 9 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 20% of other fund managers.
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