WHAT ARE WE LOOKING FOR?
Alcoa's announcement that it wants to buy Canada's Alcan Inc. confirms that the frenzy of
mergers and acquisitions is still going in full force in the materials sector of the stock market. This got us curious about what mutual funds have the most exposure to materials stocks, which include mining companies, gold producers, forest products companies and steel makers.
All the various Canadian equity fund categories were scanned for their exposure to the materials sector, as were global, international and U.S. equity funds. For reference, materials stocks
account for about 16.5 per cent of the S&P/TSX composite index.
SO WHAT DID WE TURN UP?
Materials stocks are cyclical, which means they have their ups and downs. But with the sector on a long-term roll right now, there's a clear trend linking heavy exposure to materials with excellent returns. Sprott Canadian
Equity is the king of materials, with a 73-per-cent weighting
according to the numbers most recently filed with Globefund.com. Has this big bet worked out? Well, the fund made 17.7 per cent in the 12 months to April 30, compared with 10.9 per cent on average for its peers.
Dynamic Power Canadian Growth is another materials-heavy stock with strong numbers - its one-year return is 15.6 per cent. Heavy exposure to materials doesn't guarantee you big returns, though. CIBC Capital Appreciation had almost 27 per cent of its assets in materials and its one-year return was well below average at 6.6 per cent, while Acker Finley Canada Focus generated a return of 4.8 per cent with a
materials weighting of 34.5 per cent.
Materials stocks are a performance enhancer right now, but they'll be a hindrance if commodity prices slump.
Monitor your own materials
exposure using the fund profiles on ReportonBusiness.com's Globefund.
|Fund||(May 10)||Asset Class||($-bil)||(May 10)||(Apr. 30)||(Apr. 30)||Reported||Materials|
|Sprott Canadian Equity||43.60||Canadian Equity||1.89||13.2||17.7||31.1||31-Dec-06||73.00|
|Acker Finley Select Cda Focus-A||10.88||Cdn. Div. & Equity Incm||0.05||6.7||6.6||19.8||30-Mar-07||35.21|
|Acker Finley Canada Focus||21.65||Canadian Equity (Pure)||0.02||6.2||4.8||18.1||30-Mar-07||34.52|
|Bissett All Cdn Focus F||16.91||Canadian Equity (Pure)||0||9.7||16.3||n-a||29-Dec-06||34.07|
|Dynamic Power Cdn Gwth||27.60||Canadian Equity||1.49||12.0||15.6||28.5||28-Feb-07||32.53|
|Dynamic Power Cdn Gwth Class||11.92||Canadian Equity||0.05||12.0||13.5||27.6||28-Feb-07||31.90|
|AGF Canadian Growth Equity||71.05||Canadian Equity||1.08||12.0||9.0||20.0||29-Dec-06||29.98|
|IG AGF Cdn Divers. Gwth-A||21.58||Canadian Equity||0.26||12.3||9.6||20.0||29-Dec-06||29.93|
|IG AGF Cdn Divers. Gro Class-A||20.65||Canadian Equity||0.02||11.7||8.9||18.6||29-Dec-06||29.23|
|Lakeview Disp Leader. Cdn Eq-A||13.28||Canadian Equity||0.11||5.8||1.5||n-a||28-Feb-07||28.90|
|CI Alpine Growth Equity||21.51||Canadian Equity (Pure)||0.08||8.4||2.0||16.7||30-Mar-07||28.01|
|Norrep Q Class-A||18.47||Canadian Equity (Pure)||0.09||14.7||12.1||25.6||30-Apr-07||27.00|
|CIBC Capital Appreciation||33.52||Canadian Equity (Pure)||0.34||9.3||6.6||17.5||30-Mar-07||26.76|
|MIX E&P Growth Oppor. Class||22.94||Canadian Equity (Pure)||0.06||8.3||2.1||16.7||30-Apr-07||26.38|
|Acuity All Cap 30 Cdn. Equity||28.34||Canadian Equity||0.24||12.6||15.4||18.0||30-Apr-07||26.24|
|Elliott & Page Growth Oppor.||38.91||Canadian Equity (Pure)||0.83||7.8||2.0||16.3||30-Apr-07||25.50|
|NexGen Canadian Growth - CG||10.64||Canadian Equity||n-a||15.0||n-a||n-a||31-Mar-07||25.48|
|Dynamic FocusPlus Equity||13.19||Global Equity||0.37||4.4||5.0||9.2||28-Feb-07||24.00|
|Standard Life Cdn Eq. Focus - A||12.06||Cdn. Div. & Equity Incm||0||5.9||4.2||n-a||30-Mar-07||23.32|
|MIX Global Oppor. Class||9.95||Global Equity||0||n-a||n-a||30-Apr-07||23.17|
|imaxx Cdn. Equity Growth||21.48||Canadian Equity||0.02||18.5||19.5||19.1||30-Mar-07||23.10|
|Mavrix Sierra Equity||5.23||Canadian Equity||0.01||12.5||11.1||19.6||30-Apr-07||23.06|
|TD Canadian Equity||31.98||Cdn. Div. & Equity Incm||2.98||6.7||12.6||22.9||30-Mar-07||22.33|
|Elliott & Page Cdn. Equity-Cl A||38.29||Canadian Equity||0.33||9.0||14.1||19.7||30-Apr-07||21.39|
|Middlefield U.S. Equity Class||9.30||U.S. Equity||0||4.6||8.3||5.0||29-Dec-06||21.18|
|MIX Cdn. Large Cap Gwth Class||21.21||Canadian Equity (Pure)||0.01||8.8||13.8||19.2||30-Apr-07||21.09|
|Desjardins Cdn. Equity Value||20.56||Canadian Equity (Pure)||0.56||7.8||10.2||19.1||30-Mar-07||20.94|
|iShares CDN MidCap Index||95.62||Canadian Equity (Pure)||0.24||10.9||16.0||20.6||30-Mar-07||20.78|
|National Bank Cdn Oppor.||13.60||Canadian Equity||0.24||4.5||9.1||9.6||30-Apr-07||20.58|
© 2007 The Globe and Mail. All rights reserved.
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