A run for the money

Many consumers see value in investing in mutual funds no matter how bad the economy is, organizers of a unique road race have found.
Since 1994, the top three runners in the annual FAM 5K Fund run/walk for charity, held each September in Cobleskill, N.Y., have competed for an unusual prize of mutual fund shares in one of two FAM Funds managed by Fenimore Asset Management Inc.
The winners can also opt to take cash.
In addition to the overall winners, the top three runners in more than a dozen age categories also win fund shares or cash. Participants have to be 18 or older.
The majority of winners opt for the fund shares each year, said Pete Sweetser, a retirement specialist at the firm and the race’s director.
Even amid last year’s market downturn and the last bear market, in 2003, about 70% of the winners took the mutual fund shares, he said.
“Neither the economy or the market has had any impact on people’s decision of whether they want shares or cash; it’s been consistent,” Mr. Sweetser said.
“They know it’s a good idea to be invested in something. I think they see this as an opportunity to save for the future.”
Overall winners of the race receive 10 shares in the $630 million FAM Value Fund (FAMVX) for first place, five shares for second place and three shares for third place. Winners among the age group categories compete for shares in the $70 million FAM Equity-Income Fund (FAMEX).
Last year, a record 859 runners participated, and the firm expects to set records at this year’s race, which will be held Sept. 26, Mr. Sweetser said.
Proceeds from the race, which last year totaled $22,000, are donated to one of five local charities on a rotating basis. This year’s charity is the Schoharie County ARC, a resource for individuals with developmental or intellectual disabilities.