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Large funds that deliver over-sized returns


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.


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)LatestCat. Avg(Quartile May 31, 2010)
NameCategoryAssets ($Mil)MERMER1-yr3-yr5-yr10-yr
Investors Dividend-CCanadian Equity Balanced12,768.82.852.662331
Mackenzie Cundill Value 'C'Global Equity4,680.32.432.761111
Investors Income Plus Portfolio-CCanadian Fixed Income Balanced4,158.02.532.214211
Investors Real Property-CMiscellaneous3,253.92.732.224223
Investors Mortgage & Short Term IncCanadian Short Term Fixed Income3,102.51.891.523223
Investors Cdn Large Cap Value-CCanadian Focused Equity2,695.62.852.781111
Investors Government BondCanadian Fixed Income2,638.11.941.744332
Investors Mutual of Canada-CCanadian Equity Balanced2,326.12.852.663333
Investors Canadian Equity-CCanadian Focused Equity2,302.02.852.783433
Mackenzie Ivy Foreign EquityGlobal Equity1,790.52.432.762111
Investors U.S. Large Cap Value-CU.S. Equity1,777.22.862.613221
Investors Canadian Balanced-CCanadian Equity Balanced1,612.82.852.661222
Mackenzie Ivy CanadianCanadian Focused Equity1,590.22.382.782244
IG FI Canadian Allocation-CCanadian Equity Balanced1,585.52.852.66411
Mackenzie Ivy Growth & IncomeCanadian Equity Balanced1,514.92.112.662343
Mackenzie Cundill Cdn Security 'C'Canadian Focused Equity1,466.42.382.781131
Investors Canadian BondCanadian Fixed Income1,452.31.941.744122
Investors Global-CGlobal Equity1,440.92.872.764111
Mackenzie Maxxum DividendCanadian Dividend & Income Equity1,435.82.382.363443
Mackenzie Cundill Recovery 'C'Global Small/Mid Cap Equity1,346.62.492.952211
Mackenzie Univ Canadian ResourceNatural Resources Equity1,332.52.432.713332
Mackenzie Cundill Cdn Balanced 'C'Global Neutral Balanced1,312.72.382.481111
Investors Retirement Plus Port.-CCanadian Neutral Balanced1,277.52.662.494221
Allegro Moderate Portfolio-CGlobal Equity Balanced1,246.22.762.68422
Mackenzie Sentinel Corporate BondHigh Yield Fixed Income1,191.91.641.902321
Source: Victor Tan,

© 2007 The Globe and Mail. All rights reserved.

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