| |
|
During another difficult quarter for equities, the Munder Mid-Cap Value Fund lagged its Russell Midcap® Value benchmark. The relative underperformance of the Fund was due primarily to the performance of certain stocks in the consumer discretionary, materials, industrials and utilities sectors. There was a common theme to the weakness in the materials, industrials and utilities stocks holdings. Many of these stocks had been strong performers over the past year, benefitting from the increase in commodities prices and/or the rapid growth that has been occurring in emerging economies. With more evidence during the quarter that the global economy was slowing, these stocks corrected significantly. Among the factors that were positive for the Fund's relative performance were its underweight in the energy sector, and the strong relative performance of the health care, technology and consumer staples sector of the Fund.
The Fund's consumer staples sector had a positive return, compared to the negative return for the consumer staples stocks in the Russell Midcap® Value benchmark. Strong performers among the consumer staples stocks were Campbell Soup Company (1.5% of the Fund), General Mills Inc. (1.0%) and Clorox Company (1.2%), all of which were up by double digits for the quarter. The decline in commodity inflation helped the outlook for the profit margins of these food and consumer product companies. An underweighted position in the energy sector also helped to boost the Fund's relative performance.
In contrast to these favorable factors, the industrials, materials, utilities and consumer discretionary sectors of the Fund had a negative impact on relative performance. In the industrials sector, General Cable Corporation (1.3%) was weak because of concerns about eroding fundamentals in Europe and the implications of a global slowdown for emerging markets. We believe that the demand for General Cable's products is more secular than cyclical and anticipate that the stock should recover once the credit scare passes. Terex Corp. (1.4%) was down after the company cut earnings expectations, citing slowing non-residential construction demand. We believe the shares are attractive at current levels. In the materials sector, Allegany Technologies Inc. (1.2%) and Reliance Steel & Aluminum Co. (1.4%) were both down significantly due to a sharp decline in commodity prices and weakening global demand. In the utilities sector, the Fund's gas utility holdings were negatively impacted by the sharp decline in natural gas prices. Finally, in the consumer discretionary segment, BorgWarner Inc. (1.9%), an auto supplier, and Penske Automotive Group Inc. (1.5%), an auto retailer, were hurt by economic weakness in North America and Europe.
The Fund's focus on high return on capital and strong balance sheets tends to give the Fund a higher quality bias. Combined with our focus on low valuations, we believe the Fund is well positioned for the current environment.
|
|
| |
Past performance does not guarantee future results.
An investor should consider the Fund's investment objectives, risks, and charges and expenses carefully before sending money. This and other important information about the investment company can be found in the Fund's prospectus. To obtain a prospectus, please click here. Please read the prospectus carefully before investing.
RISKS
Smaller and medium-sized company stocks are more volatile and less liquid than larger more established company securities. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. This Fund invests in foreign securities, which involve additional risks due to currency fluctuations, economic and political conditions, and differences in financial reporting standards.
Fund holdings mentioned in the manager commentary are as of 9/30/08. The portfolio holding information provided should not be considered as a recommendation to purchase or sell a particular security. There is no assurance that the securities mentioned remain in the Fund's portfolio or that securities sold have not been repurchased.
The statements and opinions expressed are those of the author(s) and do not necessarily represent the views of Munder Capital Management as a firm or the Munder Funds. While the information and statistical data contained in this material are based on sources believed to be reliable, it is current as of the time made and is subject to change without notice. Further, the information presented is general in nature and is not intended to provide personal investment advice or as an endorsement of any specific investment. The information does not take into account the specific investment objectives, financial situation and particular needs of any specific person who may receive it.
Munder Funds distributed by Funds Distributor, LLC.
|
|
| |
 |
| |
Robert E. Crosby, CFA
|
| Senior Portfolio Manager |
| BA in Economics from the University of Missouri |
| MS in Economics and Finance from Murray State University |
| Joined Munder Capital Management in 1993 |
| Years of Experience:15 |
| Focus:Co-manages the Munder Small-Cap Value, Mid-Cap Value, Micro-Cap, Small-Mid Cap and Small-Mid Cap 130/30 funds, as well as separately managed accounts in Munder Capital’s Small-Capitalization Value, Mid-Capitalization Value, Micro-Cap, Mid-Cap/Small-Cap Blend and Real Estate (REIT) disciplines. |
|
 |
| |
Julie R. Hollinshead, CFA
|
| Senior Portfolio Manager |
| BA (Cum Laude) in French from Tufts University |
| MA in International Economics & International Relations from Johns Hopkins University |
| Started with Comerica Bank in 1985. Joined Munder Capital in 1995 as a result of the merger with Comerica and its investment subsidiaries. |
| Years of Experience:14 |
| Focus:Co-manages separately managed accounts in Munder Capital’s Small-Capitalization Value, Mid-Capitalization Value, Mid-Cap/Small-Cap Blend and Micro-Cap disciplines and their associated mutual funds. |
|
 |
| |
John F. Kreiter, CFA
|
| Senior Portfolio Manager |
| BBA in Business Administration from Northwood University |
| MBA in Finance from Wayne State University |
| |
| Joined Munder Capital Management in 1995 |
| Years of Experience:18 |
| Focus:Member of Munder Capital's Large-Capitalization Value, Mid-Capitalization Value and Multi-Cap Value portfolio management teams, and co-manages the Munder Large-Cap Value Fund, the Munder Mid-Cap Value Fund and the Munder Energy Fund. Focuses on security analysis and selection with an emphasis on the energy, industrials, basic materials, telecommunication services and the consumer discretionary sectors and participates in portfolio strategy and administration. |
|
 |
| |
John P. Richardson, CFA
|
| Director, Small-Cap Equity and Senior Portfolio Manager |
| BBA in Finance from Western Michigan University |
| MBA from Wayne State University |
| Joined Munder Capital Management in 1985 |
| Years of Experience:33 |
| Focus:Co-manages all mutual funds and separately managed accounts in Munder Capital's Small-Capitalization Value, Mid-Capitalization Value, Micro-Cap and Mid-Cap/Small-Cap Blend investment disciplines. |
|
 |
| |
Joseph W. Skornicka, CFA
|
| Senior Portfolio Manager |
| BA in Financial Administration from Michigan State University
|
| MBA from the University of Michigan |
| Started with Comerica, Inc. in 1988. Joined Munder Capital in 1995 as a result of the merger with Comerica and its investment subsidiaries. Left Munder in 2001; rejoined firm in 2004.
|
| Years of Experience:20 |
| Focus:Member of the team responsible for managing the Large-Capitalization Value, Mid-Capitalization Value and Multi-Cap Value investment disciplines at Munder Capital, including the Large-Cap Value Fund and the Munder Mid-Cap Value Fund. Provides idea generation and research support in the financial services sector for other equity disciplines at Munder Capital. |
|
| Munder Funds distributed by Funds Distributor, LLC. |
|
|
Mutual Funds |
Investment Professionals |
Retirement Services |
