This is for Oberweis International Opportunities (OBIOX) Determine the actual re

Question

This is for Oberweis International Opportunities (OBIOX)

Determine the actual return for the fund over the 12 months ending October 2013. (This requires you to obtain prices and cash distributions from a source such as Yahoo Finance.) If an investor invested $10,000 at the end of October 2012, how much would his or her investment be worth by the end of October 2013? What is the level of management fees charged by the fund? Is this reflected in your assessment of return? Finally, what is the appropriate benchmark this fund should be compared to? Would this investor have been better off if they had been able to invest in the benchmark?

Please show how you calcuated the answer and the cite. Thanks for your help!!

Explanation / Answer

Value of $10,000 on 31st October 2012 = 12,852.37

Value of $10,000 on 31st October 2013 = 19,020.13

(This data has been obtained from Oberweies website, which gives the growth of $10,000 from 2007 to 2015)

source - http://oberweisfunds.com/solutions/international-opportunties-fund/

So, % growth or % return = (19,020.13 - 12,852.37)/12,852.37 = 6167.76/12,852.37 = 47.99%

Value of $10,000 on October 2013 = value on october 2012*(1+growth rate)

= 10,000*(1+0.4799) = 14,799

OBIOX is a no load fund. Expense ratio is 1.89% gross and 1.60% net. There is a 2% redemption fee, if redemption is done before 3 months.

As my investment was held for a perios of 1 year, no redemption fee is applicable. No load is chargeable. The expense ratio is already getting reflected in my return.

As per Oberweiss website, the appropriate benchmark will be MSCI World ex-US small cap growth index.

As per Oberweiss website, the fund has outperformed the index. So the investor would not have been better off by investing in benchmark.

Please see the chart on - http://oberweisfunds.com/solutions/international-opportunties-fund/

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