WHAT ARE WE LOOKING FOR?
We're off today on one of our
periodic hunts for mutual fund bargains.
All funds with a 10-year history were the starting point. From there, we looked for funds that had results in the top 25 per cent of their category for the decade to Dec. 30, 2007 (that would be first quartile) and results that were below average for their category for the past 12 months (that would be third and fourth quartile).
The underlying thinking here is that a fund coming off a bad year might be of interest if it has 10 years of success under its belt.
SO WHAT DID WE TURN UP?
Much to chew on, starting with the first fund on our list, ABC American-Value. This fund for high net worth investors is run by the well respected Irwin Michael, who has generated 10-year returns that are well above the average for U.S. equity funds. More recent returns have been disappointing, however.
Several Trimark names appear on this list, which is notable because the company has lost several key people recently. Tye Bousada, who resigned earlier this month, was since 2004 the manager of the Trimark Fund, which has long-term numbers that humble the competition. More recently, the fund has struggled to stay above the competition for any length of time. The question investors have to ask themselves about this fund is how much relevance the excellent long-term numbers have today.
A similar question could be asked of Trimark Income Growth, which like the Trimark Fund holds several billion in assets. Income Growth's 10-year numbers are quite good, but results are below average for every time frame that Globefund.com measures over the past five years.
Mackenzie Cundill Canadian Security stands out on this list because it seems to be a fund that might hold up well in the wretched stock market conditions we've seen this year. This value fund - they like to say at Cundill that their mission is to buy a dollar for 50 cents - doesn't play the commodity game much, so its recent returns have been on the weak side.
Funds with 1st quartile for 10-year return, with 3rd & 4th quartile for 1-year return
(as of Dec. 31, 2007)
|Fund name||Asset class||MER's Effective date||MER||% 1-year return||% 10-year return|
|ABC American-Value||U.S. Small or Mid Cap Equity||-23.5||7.2|
|CI American Equity||U.S. Equity||31-Dec-2007||2.34||-14.1||3.1|
|BonaVista U.S. Equity||U.S. Equity||-13.3||5.5|
|Trimark Europlus||European Equity||31-Dec-2007||2.44||-13.1||8.0|
|Renaissance Global Health Care||Health Care Equity||30-Nov-2007||3.16||-12.9||14.0|
|CIBC International Small Companies||International Equity||31-Aug-2007||2.77||-12.8||10.7|
|AGF European Equity Class||European Equity||31-Dec-2007||2.91||-11.7||10.1|
|North Growth U.S. Equity||U.S. Equity||31-Dec-2007||1.25||-10.9||9.6|
|BonaVista International||International Equity||-10.0||9.0|
|Trimark Fund - SC||Global Equity||31-Dec-2007||1.61||-9.7||6.9|
|Trimark Income Growth - SC||Canadian Equity Balanced||31-Dec-2007||1.63||-8.1||7.4|
|Altamira Asia Pacific||Asia Pacific Equity||31-Dec-2007||2.70||-7.1||6.8|
|Dynamic Venture Opport Series I||Retail Venture Capital||29-Dec-2006||3.99||-6.5||6.8|
|Acuity High Income||Canadian Equity Balanced||31-Jan-2007||2.30||-6.0||9.0|
|GBC North American Growth||North American Equity||31-Dec-2007||1.79||-5.4||4.7|
|Mackenzie Cundill Cdn Security 'A'||Canadian Focused Equity||30-Jun-2006||2.14||-4.7||9.9|
|Acuity Pooled High Income||Canadian Equity Balanced||31-Jan-2007||0.10||-3.9||12.1|
|PH&N Dividend Income-A||Canadian Focused Equity||31-Dec-2007||1.14||-3.9||11.4|
|Bissett Microcap-F||Canadian Small or Mid Cap Equity||31-Dec-2007||2.32||-3.5||19.1|
|Goodwood Fund-A||Alternative Strategies||30-Dec-2005||2.49||-2.9||17.3|
|Acuity Pooled Conser Asset Alloc||Canadian Neutral Balanced||31-Jan-2007||0.10||-2.2||11.3|
|National Bank Dividend||Canadian Equity Balanced||31-Dec-2007||1.71||-1.6||7.7|
|Front Street Small Cap Canadian||Miscellaneous||29-Dec-2006||4.10||-1.3||20.1|
|MB Private Balanced||Canadian Neutral Balanced||-1.2||7.1|
|AIM Canadian First Class||Canadian Focused Equity||31-Dec-2007||2.40||-0.9||12.2|
|GWL Income (M) NL||Canadian Fixed Income Balanced||31-Dec-2007||2.45||-0.3||5.8|
|CIBC Canadian Small Companies||Canadian Small or Mid Cap Equity||31-Aug-2007||2.56||-0.1||12.8|
|TD Dividend Income||Canadian Equity Balanced||31-Dec-2007||1.94||0.1||9.7|
|CI Signature High Income||Canadian Equity Balanced||31-Dec-2007||1.54||0.1||10.2|
|Mackenzie Sentinel Income Class 'A'||Canadian Fixed Income Balanced||30-Jun-2006||1.87||0.3||6.6|
|Integra Diversified||Canadian Neutral Balanced||31-Dec-2002||2.01||0.5||7.6|
|McElvaine Investment Trust||Canadian Focused Small/Mid Cap Equity||0.6||16.1|
|Renaissance Canadian Core Value||Canadian Focused Equity||30-Nov-2007||2.39||0.7||10.1|
|Empire Asset Allocation - Class A||Tactical Balanced||31-Dec-2007||2.58||1.2||5.9|
|TD Dividend Growth||Canadian Dividend and Income Equity||31-Dec-2007||1.94||1.3||10.7|
|Mavrix Strategic Small Cap||Canadian Focused Small/Mid Cap Equity||31-Dec-2007||2.36||1.4||11.4|
© 2007 The Globe and Mail. All rights reserved.
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