WHAT WE'RE UP TO
Two of the biggest drivers of the Canadian stock market in the past 12 months have been Potash Corp. of Saskatchewan and Research In Motion. Let's see which mutual funds have benefited most from the rise of these two stocks.
Funds in all categories were ranked according to their combined portfolio weighting of Potash Corp. and RIM, as of their most recent reporting dates. To see how well this investment decision has worked out, each fund's quartile ranking for the past year is included. Quartiles divide funds in a category into four groups according to their returns. First quartile is best, fourth quartile is the bottom.
SO WHAT DID WE TURN UP?
Lots of funds that have feasted off Potash Corp., up 169 per cent in the 12 months to May 22, and RIM, up 129 per cent over that period. In fact, 15 of the 25 funds with the heaviest concentration in these two stocks have been first quartile in the past year.
Credit the managers of these funds with shrewd and gutsy calls in loading up on RIM and Potash Corp. Hundreds of funds own these stocks, but the vast majority have played it cautious and kept their exposure low. Of course, emphasizing particular stocks brings risks as well as rewards. Almost a decade ago, many funds were loading up on Nortel Networks. You know how well that worked out in the end.
Possibly the most notable fund on the list is TD Canadian Equity. It's rare to see a giant fund of any kind, never mind a bank fund, make such a big bet on stocks that have speculative aspects to them. So far, the managers of TD Canadian Equity are looking good on this call. The fund is top quartile in the past year, and the average three-year return of 20 per cent beats both its peer Canadian equity funds and the S&P/TSX composite index.
Speaking of indexes, you'll notice a few index-tracking exchange-traded funds on our list. They're a reminder that stocks on the rise will account for a growing chunk of their respective stock indexes. Example: RIM alone accounts for 27.4 per cent of the iShares Cdn Tech Sector Index Fund.
Funds with RIM/POT Exposure
|Assets||Last reported||Last reported||RIM/POT||1-year|
|Fund name||Category||('000)||MER date||MER||holding date||exposure||quartile|
|iShares CDN Tech Sector Index||Sci. & Tech. Equity||84,424||3/31/2008||0.55||4/30/2008||25.46%||1|
|iShares CDN Growth Index||Canadian Equity||43,276||3/31/2008||0.50||3/31/2008||21.28%||1|
|Desjardins Environment||Canadian Equity||132,700||1/31/2007||2.35||4/30/2008||14.54%||1|
|Manulife Canadian Equity Fund - A||Cdn. Focused Equity||474,267||12/29/2006||2.23||4/30/2008||11.38%||1|
|TD Canadian Equity||Canadian Equity||3,293,079||4/30/2008||2.09||4/30/2008||11.36%||1|
|Manulife Canadian Equity Class||Cdn. Focused Equity||15,184||4/30/2007||2.49||4/30/2008||11.14%||1|
|Putnam Canadian Equity-A||Canadian Equity||26,196||12/31/2007||2.62||3/31/2008||10.64%||3|
|Manulife Canadian Core Fund||Canadian Equity||320,868||12/29/2006||2.48||4/30/2008||10.23%||1|
|Manulife Canadian Core Class||Canadian Equity||41,473||4/30/2007||2.74||4/30/2008||10.17%||1|
|iShares CDN LargeCap 60 Index||Canadian Equity||8,717,860||3/31/2008||0.17||3/31/2008||9.85%||1|
|Altamira Capital Growth||Canadian Equity||87,321||4/30/2008||2.13||3/31/2008||9.74%||1|
|GGOF Canadian Equity Fund Ltd. Mut||Canadian Equity||57,998||12/31/2007||2.47||3/31/2008||9.47%||2|
|TD Diversified Monthly Income - A||Cdn. Equity Balanced||4/30/2008||2.21||4/30/2008||9.40%||3|
|National Bank Strategic Yield Class||Miscellaneous||70,064||4/30/2008||0.76||3/31/2008||9.39%||2|
|National Bank Canadian Index||Canadian Equity||18,514||4/30/2008||1.13||3/31/2008||9.33%||1|
|Altamira Precision Cdn Index||Canadian Equity||199,119||4/30/2008||0.53||3/31/2008||9.25%||1|
|Standard Life Cdn Equity Focus - A||Canadian Equity||5,111||4/30/2008||2.46||4/30/2008||9.11%||1|
|United-Cdn Equity Growth Pool Cl W||Cdn. Focused Equity||135,989||4/30/2008||0.20||4/30/2008||9.05%||1|
|BMO Canadian Equity Class||Canadian Equity||16,672||9/28/2007||2.45||1/31/2008||9.05%||1|
|Hartford Canadian Stock D||Canadian Equity||20,638||4/30/2008||2.00||12/31/2007||8.98%||2|
|BMO Equity||Canadian Equity||2,136,784||9/28/2007||2.30||1/31/2008||8.95%||2|
|IA Clarington Canadian Growth||Canadian Equity||49,601||4/30/2008||2.49||4/30/2008||8.92%||4|
|Manulife Sector Rotation Fund||Canadian Equity||116,238||12/29/2006||2.69||4/30/2008||8.81%||2|
|Middlefield Global Growth Class||Global Equity||344||4/30/2008||2.79||3/31/2008||8.65%|
|Sceptre Canadian Equity - A||Canadian Equity||30,079||12/29/2006||1.69||1/31/2008||8.60%||3|
|imaxx Canadian Equity Growth||Canadian Equity||24,702||4/30/2008||2.68||3/31/2008||8.32%||2|
|Dynamic Power American Gwth Cl||U.S. Equity||91,067||6/29/2007||2.59||2/29/2008||8.01%||1|
|TD Canadian Index||Canadian Equity||867,886||4/30/2008||0.85||4/30/2008||8.01%||2|
|IA Clarington Canadian Leaders||Canadian Equity||81,598||4/30/2008||2.40||4/30/2008||7.98%||1|
|Dynamic Power American Growth||U.S. Equity||216,480||6/29/2007||2.55||2/29/2008||7.98%||1|
|Desjardins Canadian Equity||Canadian Equity||497,489||1/31/2007||2.19||3/31/2008||7.93%||4|
|SEI Canadian Equity-O||Canadian Equity||2,365,018||4/30/2008||0.09||3/31/2008||7.81%||1|
|Altamira Equity||Cdn. Focused Equity||737,962||4/30/2008||2.63||3/31/2008||7.66%||1|
|Quadrus GWLIM Cdn Growth||Canadian Equity||17,190||6/29/2007||2.65||3/31/2008||7.59%||2|
|iShares CDN Composite Index||Canadian Equity||486,264||3/31/2008||0.25||3/31/2008||7.52%||2|
|Dynamic Power Global Growth Cl||Global Equity||223,391||6/29/2007||2.67||2/29/2008||7.50%||1|
|iShares CDN Jantzi Social Index||Canadian Equity||31,493||3/31/2008||0.50||3/31/2008||7.49%|
© 2007 The Globe and Mail. All rights reserved.
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