The Allianz AGIC Ultra Micro Cap Fund (MUTF: AUMIX) is an IRA for heavy hitters with at least $1 million to invest and a little patience. The fund’s total asset base makes it look much like a mini investment club or private equity fund in that it seeks out ultra small capitalization companies with huge growth potential. The fund may invest in securities issued in initial public offerings (IPOs), and may utilize foreign currency exchange contracts, options, stock index futures contracts and other derivative instruments to achieve its goals.
Here are the specifics for the Allianz AGIC Ultra Micro Cap Fund for today’s mutual fund spotlight:
Investing Strategy: The portfolio managers look for companies they believe offer the best risk-reward opportunities based on companies’ fundamental performance, expectations and expansion plans. Some 95.5% of the fund’s assets are in stocks and the remainder is held in cash.
Expense Ratio: With a 2.23% expense ratio and $75 transaction fee, the Allianz AGIC Ultra Micro Cap Fund is expensive but it has a Morningstar rating of five stars.
Top 5 Holdings: The top five stocks in the Allianz AGIC Ultra Micro Cap Fund include interactive multi-media retailer Value Vision Media, Inc. A (NASDAQ: VVTV) at 1.94%, chemical bulk tank truck network operator Quality Distribution, Inc. (NASDAQ: QLTY) at 1.85%, Internet-based healthcare learning and research solutions provider HealthStream, Inc. (NASDAQ: HSTM) at 1.83%, alternators and starters remanufacturer Motorcar Parts of America, Inc. (NASDAQ: MPAA) at 1.81%, and OEM sensors and sensor-based systems developer Measurement Specialties (NASDAQ: MEAS) at 1.77%.
Returns: The fund’s year-to-date return as of July 11 was 14.7%, almost double the Dow Jones Industrial Average’s return of about 8% and almost triple the S&P 500 Index’s 5% return so far in 2011. Its three-year return is about 20% also outperformed the Dow Jones Industrial Average’s 13% return and the S&P 500’s 7% return during the period.
Other Fund Statistics
- Total Assets: $6.57 million (as of 6/16/11)
- Minimum Investment: $1 million
- Fund manager:John C. McCraw, Mathew K. Axline, Robert S. Marren
- Manager’s Tenure: McCraw and Marren since January 2008 and Axline since May 2010
Editor’s note: A previous version of this story incorrectly reported the returns of the Allianz fund. That section was corrected on July 12, 2011.