WHAT WE'RE LOOKING AT
This week's cruncher series focuses on the largest fund families in Canada. How good are their most popular funds? Today we look at Investors Group, which also owns the Mackenzie family of funds.
The 25 largest IG and Mackenzie Funds are listed here along with quartile rankings over a variety of time frames. Quartiles are the best way to measure a fund's performance. They divide funds in a category into four groups according to their returns, with first quartile being most desirable and fourth the basement. Fees are another important factor in evaluating funds. Here, we've included management expense ratios for each fund, plus the category average. Note: big funds should be much lower than average because of economies of scale.
WHAT WE FOUND
If you're observant you've noticed that IG funds are mega-sized and mega-priced. In some cases, IG is delivering good to excellent returns despite the heavy fee load, most notably with Investors Canadian Large Cap Value. You have to hand it to the manager of this fund, Dom Grestoni. Despite a honking big MER of 2.85 per cent for the C version of this fund, he has regularly beaten the average returns of his peers in recent years.
An IG fund that seems handcuffed by its high fees is Investors Mutual of Canada, a balanced fund with a tilt toward stocks. Over several time frames, returns have come in a little below average. A lower MER would help that.
Investors Government Bond is an example of how high fees can work against you in bond funds. While the 10-year quartile ranking is fine, this fund's returns have been uniformly below average in recent years. Low interest rates are not a good match with high bond fund fees.
Several Mackenzie funds make the list and the ones that really stand out for solid returns are in the Cundill series.
|Top 25 Investors Group/Mackenzie Funds by Assets|
|(May 31,2010)||Latest||Cat. Avg||(Quartile May 31, 2010)|
|Investors Dividend-C||Canadian Equity Balanced||12,768.8||2.85||2.66||2||3||3||1|
|Mackenzie Cundill Value 'C'||Global Equity||4,680.3||2.43||2.76||1||1||1||1|
|Investors Income Plus Portfolio-C||Canadian Fixed Income Balanced||4,158.0||2.53||2.21||4||2||1||1|
|Investors Real Property-C||Miscellaneous||3,253.9||2.73||2.22||4||2||2||3|
|Investors Mortgage & Short Term Inc||Canadian Short Term Fixed Income||3,102.5||1.89||1.52||3||2||2||3|
|Investors Cdn Large Cap Value-C||Canadian Focused Equity||2,695.6||2.85||2.78||1||1||1||1|
|Investors Government Bond||Canadian Fixed Income||2,638.1||1.94||1.74||4||3||3||2|
|Investors Mutual of Canada-C||Canadian Equity Balanced||2,326.1||2.85||2.66||3||3||3||3|
|Investors Canadian Equity-C||Canadian Focused Equity||2,302.0||2.85||2.78||3||4||3||3|
|Mackenzie Ivy Foreign Equity||Global Equity||1,790.5||2.43||2.76||2||1||1||1|
|Investors U.S. Large Cap Value-C||U.S. Equity||1,777.2||2.86||2.61||3||2||2||1|
|Investors Canadian Balanced-C||Canadian Equity Balanced||1,612.8||2.85||2.66||1||2||2||2|
|Mackenzie Ivy Canadian||Canadian Focused Equity||1,590.2||2.38||2.78||2||2||4||4|
|IG FI Canadian Allocation-C||Canadian Equity Balanced||1,585.5||2.85||2.66||4||1||1|
|Mackenzie Ivy Growth & Income||Canadian Equity Balanced||1,514.9||2.11||2.66||2||3||4||3|
|Mackenzie Cundill Cdn Security 'C'||Canadian Focused Equity||1,466.4||2.38||2.78||1||1||3||1|
|Investors Canadian Bond||Canadian Fixed Income||1,452.3||1.94||1.74||4||1||2||2|
|Investors Global-C||Global Equity||1,440.9||2.87||2.76||4||1||1||1|
|Mackenzie Maxxum Dividend||Canadian Dividend & Income Equity||1,435.8||2.38||2.36||3||4||4||3|
|Mackenzie Cundill Recovery 'C'||Global Small/Mid Cap Equity||1,346.6||2.49||2.95||2||2||1||1|
|Mackenzie Univ Canadian Resource||Natural Resources Equity||1,332.5||2.43||2.71||3||3||3||2|
|Mackenzie Cundill Cdn Balanced 'C'||Global Neutral Balanced||1,312.7||2.38||2.48||1||1||1||1|
|Investors Retirement Plus Port.-C||Canadian Neutral Balanced||1,277.5||2.66||2.49||4||2||2||1|
|Allegro Moderate Portfolio-C||Global Equity Balanced||1,246.2||2.76||2.68||4||2||2|
|Mackenzie Sentinel Corporate Bond||High Yield Fixed Income||1,191.9||1.64||1.90||2||3||2||1|
|Source: Victor Tan, Globeinvestor.com|
© 2007 The Globe and Mail. All rights reserved.
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