Wasatch to Reopen Funds

According to Morningstar.com, small-cap specialist Wasatch is to opened several closed funds on January 31st, 2007. If you are looking to add small-cap funds to your portfolio, this may be a chance. However, there are restrictions. Wasatch Fund website says the following three funds will be available to existing investors:

  • Wasatch Small Cap Value Fund (WAAEX) – Style: Small blend, ER: 1.18%, 5-year return: 7.74%
  • Wasatch Small Cap Growth Fund (WMCVX) – Style: Small blend, ER: 1.68%, 5-year return: 13.87%
  • Wasatch Core Growth Fund (WGROX) – Style: Mid growth, ER: 1.17%, 5-year return: 8.81%

Meanwhile, Wasatch Ultra Growth Fund (WAMCX) (Small growth, 1.48%, 5.90%) will be open to all investors. 

I used to own WAAEX for several years until I sold all my shares early last year. The main reason was the close of the fund since 2001 so I wasn't able to make any contribution in the past five years. My decision also has something to do with the relatively high expense (ER) ratio, now at 1.18%. Actually, the Wasatch funds all have high ERs, partly because they are all most small- and mid-cap funds, which usually have high ERs due to their investment objective as compared to large-cap funds. Also the close of the funds had the sizes of the funds under control, but didn't help to bring down the ERs. 

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