What we're up to
Another in a continuing series of Number Crunchers designed to present some opportunities for doing something that people don't do often enough, which is buy good mutual funds when they're down in price.
How do we know a fund is a good product? Here, we'll judge by looking only at those with a first-quartile ranking over the past 10 years. Quartiles divide funds in a category into four groups, with the first being tops and the fourth being the dregs. To find the quality funds that are now on sale, we looked only at those top quartile funds over the past 10 years that have fallen 15 per cent or more in the 12 months to July 31.
So what did we turn up?
An interesting mix of big, small and obscure funds in just about all categories. What they all share is a record of beating the competition in the long term, even while they've struggled in the near term.
Looking for some non-North American exposure for your portfolio? Mawer World Investment is an outstanding name that, even while losing 15.1 per cent in the past year, has been above average. If that 10-year compound average annual return of 5 per cent doesn't impress, then consider that the average international equity fund made just 0.9 per cent. Need some U.S. market exposure? North Growth U.S. Equity and RBC O'Shaughnessy U.S. Value have 10-year results that are vastly better than the category's average annual loss of 1.6 per cent.
Small and mid-sized companies have been treated especially roughly in the past year or so. If you can stand the risks of buying in now, then our list offers several possibilities. Forget about the Norrep Fund, though. It's closed to new clients.
High net worth investors, your attention is directed to a pair of funds on the list, McElvaine Investment Trust B, which requires a minimum upfront investment of $25,000, and ABC American-Value, which requires $150,000 to get in. The former fund is run by Tim McElvaine, who is known to savvy investors for a value investing style that has produced far above average 10-year numbers. The ABC fund is run by Irwin Michael, another of the value school's ace bargain hunters.
10-year 1st Quartile Rank with Loss greater than 15%
|Fund Name||Category||(as of July '08) Assets ($-mil)||Latest MER||% return (as of July 31 '08): 1-year||% return (as of July 31 '08): 10-year|
|Mawer World Investment||International Equity||352.5||1.43||-15.1||5.0|
|Investors U.S. Large Cap Value-C||U.S. Equity||2,057.3||2.87||-16.3||0.0|
|Sceptre Equity Growth-A||Canadian Small or Mid Cap Equity||524.4||1.58||-16.3||14.7|
|BMO North American Dividend||North American Equity||82.2||2.35||-16.5||3.3|
|GBC International Growth||International Equity||146.2||1.91||-17.2||3.4|
|TD Asian Growth||Asia Pacific ex-Japan Equity||169.4||2.76||-17.2||9.6|
|Norrep Fund||Canadian Small or Mid Cap Equity||121.2||2.49||-17.4||22.6|
|Dynamic Global Value Fund||Global Equity||499.9||2.56||-17.6||4.0|
|Trimark Fund-SC||Global Equity||1,943.4||1.62||-18.4||5.0|
|GGOF American Equity Fund Ltd Class||U.S. Equity||14.5||2.21||-18.5||0.4|
|North Growth U.S. Equity||U.S. Equity||221.2||1.20||-19.1||7.3|
|TD Entertainment & Communications||Global Equity||117.7||2.70||-19.7||6.1|
|RBC O'Shaughnessy U.S. Value||U.S. Equity||1,111.5||1.47||-20.2||4.7|
|Trimark Europlus||European Equity||316.8||2.44||-22.2||4.7|
|AGF International Stock Class||International Equity||1,328.3||2.85||-22.7||5.4|
|Dynamic Far East Value||Asia Pacific Equity||55.5||3.02||-23.2||5.3|
|CIBC International Small Companies||International Equity||126.5||2.77||-23.4||6.7|
|AGF European Equity Class||European Equity||1,195.5||2.95||-24.7||4.6|
|Trimark Canadian Small Companies||Canadian Focused Small/Mid Cap Equity||160.7||2.43||-24.9||10.4|
|McElvaine Investment Trust-B||Canadian Focused Small/Mid Cap Equity||67.8||0.60||-26.1||11.0|
|Dynamic Venture Opport Series I||Retail Venture Capital||45.0||3.99||-26.2||4.6|
|ABC American-Value||U.S. Small or Mid Cap Equity||72.0||2.00||-27.0||6.0|
© 2007 The Globe and Mail. All rights reserved.
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.