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Value managers of Canadian funds back in sun

swon@globeandmail.com

WHAT ARE WE LOOKING FOR?

Fund managers who managed to shine through the volatility that hit the Canadian stock market in August.

With many investors still on vacation or gearing for up for their children's new school year, probably little attention was paid to the markets. That's just as well because there were some nail-biting days as resource stocks took a pummelling. And the S&P/TSX composite index essentially ended the month flat, eking out a 1.3-per-cent gain.

TODAY'S SEARCH

We checked out the returns from Canadian equity and Canadian focused equity funds (which can invest up to 50 per cent in foreign stocks). We also excluded other classes of the same fund.

SO WHAT DID WE TURN UP?

Value managers, whose funds have lagged in recent years in the face of a strong resource rally, seem to be having their day in the sun again. The AIC Advantage and AIC Advantage II funds head the pack, both gaining 7 per cent during the month. Their funds, heavily weighted in asset managers, are co-managed by Michael Lee-Chin and Robert Almeida.

The funds got a lift from holding stocks such as Invesco Ltd., IGM Financial Inc. (which owns Investors Group and Mackenzie Financial) and CI Financial Income Fund, and the fact they hold no resource stocks, Mr. Almeida said.

Canadian asset managers have been beaten up even though they are not affected by the U.S. subprime mortgage crisis. They have been suffering from pessimism about the stock markets, Mr. Almeida said.

The Mackenzie Cundill Canadian Security fund run by Wade Burton, meanwhile, gained 6.4 per cent last month, while Mackenzie Ivy Canadian fund run by Jerry Javasky rose 5.4 per cent.

The Trimark Canadian Endeavour fund rose 6.4 per cent, helped by consumer discretionary names such as Tempur-Pedic International Inc., Liz Claiborne Inc. and Pool Corp. The Trimark Canadian Fund rose 6.2 per cent, lifted by stocks such as Meritage Corp., Rona Inc. and Legg Mason Inc.

The RBC Canadian Diversified Income Trust fund gained 5.8 per cent in August, and also produced an 18.7-per-cent return over one year. Some of its holdings include trusts such as Canadian Oil Sands and Fording Canadian Coal.

Top 30 Canadian stock funds in August

As of Aug. '08Latest% return (as of Aug. 31, 2008)
Fund nameCategoryAssets ($-mil)MER1-monthYTD1-year3-year5-year
AIC AdvantageCdn. Focused Equity713.42.457.0-19.2-21.22.14.8
AIC Advantage IICdn. Focused Equity491.32.727.0-19.5-21.41.74.4
Mackenzie Cundill Cdn Security 'C'Cdn. Focused Equity1,948.92.356.4-3.7-9.41.46.0
Trimark Canadian EndeavourCdn. Focused Equity1,120.52.136.4-7.7-20.5-2.14.8
Trimark Canadian-SCCdn. Focused Equity753.51.656.2-1.3-9.12.06.0
Tmpltn Canadian StockCdn. Equity165.62.586.0-1.7-11.01.74.6
RBC Cdn Diversified Income TrustCdn. Equity24.52.045.815.118.7
Mackenzie Ivy CanadianCdn. Focused Equity2,607.62.355.4-0.8-3.10.94.6
AGF Canadian ValueCdn. Focused Equity222.12.405.1-5.9-8.34.57.3
Northwest Canadian EquityCdn. Focused Equity319.52.524.9-6.9-15.22.28.0
imaxx Canadian Equity ValueCdn. Focused Equity42.82.494.80.4-5.94.07.8
Mackenzie Univ Canadian GrowthCdn. Focused Equity1,036.72.364.84.23.77.910.4
Invesco Trimark Core Cdn Eqty ClCdn. Focused Equity101.52.214.1-2.4-5.45.110.8
Investors Quebec Enterprise-CCdn. Equity235.72.883.9-10.2-12.23.48.3
Trimark Canadian Focus Class ACdn. Equity7.82.613.9-2.7-6.3
Counsel Select CanadaCdn. Focused Equity20.92.873.9-4.3-7.04.58.8
Beutel Goodman Canadian IntrinsicCdn. Focused Equity2.31.443.90.9-2.58.08.0
Mackenzie Maxxum Canadian ValueCdn. Focused Equity218.72.363.8-5.0-10.71.86.0
Manulife Canadian Value FundCdn. Equity363.92.393.8-6.1-7.03.610.9
Social Housing Canadian EquityCdn. Equity64.31.093.5-3.7-6.87.311.7
Trimark Select Canadian GrowthCdn. Focused Equity2,667.92.313.5-4.1-7.63.17.5
Trimark Canadian Equity Private PlCdn. Focused Equity49.42.073.4-3.7-7.2
Optimum ActionsCdn. Equity19.92.643.4-2.3-2.66.610.4
PH&N Community Values Cdn Equ-ACdn. Equity25.21.403.4-1.6-4.97.912.3
Quadrus London Capital Cdn Dv EqCdn. Focused Equity2.563.4-2.1-5.16.39.7
RBC O'Shaughnessy Canadian EquityCdn. Focused Equity1,740.41.473.4-3.4-4.77.212.5
RBC O'Shaughnessy All-Can EquityCdn. Equity192.71.743.2-2.4-2.0
Integra EquityCdn. Equity131.12.133.2-4.9-8.44.810.3
National Bank Protected Cdn EquCdn. Equity9.03.383.1-2.6-4.85.99.0
Bissett Canadian Equity-FCdn. Equity297.31.253.1-3.7-7.14.810.7
S&P/TSX composite index 1.3 -0.4 0.8 8.9 12.9

SOURCE: GLOBEFUND

© 2007 The Globe and Mail. All rights reserved.

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