WHAT ARE WE LOOKING FOR?
Long-term duds that have come to life in the past year.
We started with funds sporting a 10-year compound average annual returns that rank in the bottom 25 per cent of their respective categories. Fourth-quartile funds, in other words. We then discarded all but those funds with first-quartile results in the past 12 months (returns in the top 25 per cent for a category). Funds on our list are ranked by their one-year returns, and we've shown their 10-year average annual returns so you can assess how out-of-character the recent results are.
SO WHAT DID WE TURN UP?
A variety of sector funds, which isn't surprising because these funds often exhibit boom-bust characteristics. Smart investors should try to lock in their gains in these funds rather blindly holding on for the long term. Consider AGF Asian Growth Class, which has done exceptionally in the past year. The background here is that this fund is in the Asia ex-Japan category, where the average fund lost money in five of the past 10 years.
Ethical Growth offers an example of how a long-term wretch of a fund can be revived by a new manager. Robert Hammill of Guardian Capital has been running Ethical Growth for three years and returns since then have regularly been above average. This is great news for loyal unitholders, who received less than half of what the S&P/TSX composite index made in the past 10 years, dividends included.
Trimark Global Endeavour deserves a close look here because it's one of the largest funds on the list. This fund's one-year numbers are great, but the long-term performance is weak and returns over the past six months have been negative while the entire global equity fund sector has made money on average.
Check out a fund's long- and short-term numbers on Globefund, and be sure to look at the annual numbers as well. Regular fund reports go back to 2000 with their annual numbers, and you'll find more data in the site's 15-year review.
New life for old funds
|(As of July 2007)||Net Assets||Last Reported||1 year||10 year|
|Name||($-millions)||MER||Asset class||return (%)||return (%)|
|AGF Asian Growth Class||63.7||2.99||Asia Pacific ex-Japan||49.78||-1.63|
|Caldwell Canada||89.0||2.75||Canadian Small or Mid Cap||43.15||2.52|
|AGF Cdn Small Cap||375.9||2.73||Canadian Small or Mid Cap||34.27||3.92|
|CIBC Canadian Resource||112.0||2.48||Natural Resources||32.98||9.22|
|Altamira Special Growth||125.3||1.92||Canadian Small or Mid Cap||31.87||7.44|
|Mavrix Growth||13.4||3.18||Canadian Small or Mid Cap||31.11||-8.95|
|AGF Germany Class||15.1||3.19||Miscellaneous||29.61||1.33|
|AGF Aggressive Global Stock||81.5||3.12||Global Small/Mid Cap||29.16||6.36|
|Trimark Global Endeavour||1,913.3||2.39||Global Small/Mid Cap||28.71||6.81|
|Altamira Resource||161.3||2.65||Natural Resources||27.00||9.97|
|Acuity Clean Environment||92.9||2.85||Canadian Focused Small/Mid Cap||26.90||5.12|
|IA Clarington Canadian Growth||55.4||2.48||Canadian||26.71||4.19|
|AIC Advantage||1,142.9||2.47||Canadian Focused||23.73||4.9|
|Renaissance Canadian Growth||222.3||2.49||Canadian Focused||23.69||5.89|
|AIC Advantage II||835.3||2.73||Canadian Focused||23.27||4.91|
|GGOF Enterprise Mutual||156.3||2.75||Canadian Small or Mid Cap||22.46||7.61|
|Ethical Growth||440.2||2.37||Canadian Focused||20.60||4.24|
|Caldwell Balanced||48.8||2.75||Global Balanced||20.05||2.08|
|Altamira Equity||749.6||2.64||Canadian Focused||18.65||5.37|
Combined assets from all series
© 2007 The Globe and Mail. All rights reserved.
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