What We're Looking At
A collection of some of the oldest mutual funds in the Canadian market.
The mutual fund industry really took off in the mid-1980s and has been pumping out new products since then at a tremendous rate. But there are a small number of funds that have been around for 40 to 50 years or more. We gathered up these funds and then asked the question: Does age equal wisdom, or at least good returns? To find out, we included the return since inception for the funds on our list (it wasn't available for some funds), as well as the 10-year quartile ranking. To see how our funds are doing lately, we included one-year quartile data as well. Quartile rankings compare returns for a particular category and then break the results down into four groups. First quartile is best, fourth is worst.
What We Found
Mutual fund managers come and go, fund mandates change, and fund companies get bought out and restructured. So read the long-term performance data here with caution. That said, there do seem to be some consistently good results here.
Take Dynamic Value Fund of Canada, for example. Its compound average annual return of 11.5 per cent since it opened for business in 1957 is outstanding, and so is its consistency. Over virtually all measured time frames, it has delivered far better than average returns.
Be wary of funds with great returns since inception that seem to have been fuelled by glory years long past. Templeton Growth is one. The annualized 12-per-cent return since the fund opened is brilliant, but its 10-year compound average annual loss of 1.5 per cent reflects the general hideousness of global equity funds in general.
Note: Some old funds may not be on this list because they have changed ownership many times and their original inception date is no longer used to calculate historical returns. An example is IA Clarington Canadian Conservative Equity, which has a very respectable 20-year compound average annual return of 8.5 per cent.
|Old-Timer Mutual Funds (Data as of July, 2009)|
|Fund Name||Asset Class||Net Assets ($millions)||Inception Date||Return Since Launch||10-Yr Quartile Ranking||1-Yr Quartile Ranking|
|Investors Mutual of Canada-C||Canadian Equity Balanced||1,979.8||1/31/1950||8.3%||2||3|
|Templeton Growth Fund Ltd.||Global Equity||2,073.8||11/29/1954||12.0%||2||2|
|Desjardins Canadian Equity||Canadian Equity||476.3||10/30/1956||n/a||4||2|
|AGF American Growth Class||U.S. Equity||468.4||6/28/1957||7.8%||4||3|
|Investors North American Equity-C||North American Equity||1,031.7||10/24/1957||8.2%||3||2|
|Dynamic Value Fund of Canada||Canadian Focused Equity||1,166.9||10/31/1957||11.5%||1||2|
|Scotia Canadian Income||Canadian Fixed Income||1,016.0||11/1/1957||n/a||2||4|
|Desjardins Canadian Bond||Canadian Fixed Income||1,136.0||11/12/1959||n/a||3||3|
|Desjardins Global Equity Value||Global Equity||262.6||11/12/1959||n/a||4||4|
|Tradex Equity Fund Limited||Canadian Focused Equity||79.2||4/1/1960||n/a||4||4|
|AGF Canadian Resources||Natural Resources Equity||249.6||6/30/1960||8.7%||3||2|
|Formula Growth Fund||Alternative Strategies||150.5||6/30/1960||12.4%||4||2|
|Scotia Canadian Growth||Canadian Focused Equity||394.5||2/20/1961||n/a||3||4|
|Investors U.S. Large Cap Value-C||U.S. Equity||2,117.3||1/27/1962||7.2%||1||2|
|Investors Dividend-C||Canadian Equity Balanced||6,415.6||3/30/1962||7.7%||1||1|
|AGF Canadian Bond||Canadian Fixed Income||897.2||11/30/1962||8.3%||3||3|
|PH&N U.S. Equity-D||U.S. Equity||197.7||9/1/1964||8.6%||3||2|
|Scotia Global Growth||Global Equity||73.6||12/31/1964||5.4%||4||3|
|AGF Canadian Growth Equity||Cdn. Small/Mid Cap Equity||613.6||4/30/1965||9.3%||3||4|
|Desjardins Short-Term Income||Cdn. Short Term Fixed Income||601.2||6/15/1965||3||3|
|MD Equity||Canadian Focused Equity||1,783.6||3/1/1966||n/a||2||2|
|National Bank Bond||Canadian Fixed Income||1,019.6||11/18/1966||8.1%||2||2|
|Ethical Income||Canadian Fixed Income||227.4||4/1/1967||n/a||2||2|
|RBC Cdn Equity||Canadian Equity||4,246.7||4/18/1967||9.3%||2||3|
|Mackenzie Growth||Canadian Focused Equity||296.0||12/31/1967||10.0%||4||4|
|Investors U.S. Large Cap Growth-C||U.S. Equity||212.4||1/12/1968||4.7%||4||1|
|Ethical American Multi-Strategy||U.S. Equity||40.2||9/30/1968||n/a||4||1|
|GGOF Canadian Equity Fund Ltd. Mut||Canadian Equity||44.5||7/8/1969||n/a||1||2|
|MD Growth||Global Equity||2,136.1||11/1/1969||n/a||2||2|
© 2007 The Globe and Mail. All rights reserved.
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