What are we looking for?
The leaders and laggards over a decade among Canadian stock funds sold by the Big Six banks.
We screened for the best and worst eight funds in the Canadian equity, Canadian focused equity and Canadian dividend and income categories for the 10 years ended July 31. U.S. dollar, segregated, pooled, fund of funds and duplicate versions were excluded.
What did we find?
Canadian dividend and income funds, which focus on dividend-paying stocks and income trusts, dominated the bank leaders. And CIBC's Renaissance Millennium High Income was the best performer with an average annual gain of 9 per cent over a decade.
While bank funds invested in the Canadian market are often run in-house, this one has been managed externally since inception in 1997 by Barry Morrison of Toronto-based Morrison Williams Investment Management. This fund, interestingly, is the top performer despite charging a higher management expense ratio (MER) of 2.41 per cent compared with less than 2 per cent for its peers that made it to the top of the chart.
All eight bank-fund stars, including RBC Canadian Dividend and TD Dividend Growth, which each posted an average annual gain of 8.5 per cent, were index beaters. All outpaced the performance of the S&P/TSX Total Return index and its 3.5 per cent over 10 years.
Among the laggards, CIBC Canadian Equity Value topped the list with an average annual loss of 0.10 per cent. Over the years, it has had different managers. Colum McKinley is the latest.
National Bank's Altamira Canadian Equity Growth gained a meagre average annual 0.10 per cent over the period. The bank acquired the fund in 2002.
|Top and bottom Canadian Equity Funds - 10-yr, as of July 31|
|Name||Category||As of July 31Assets ($ mil)||LatestMER||July 31||Calendar Year (% Returns)|
|Renaissance Millennium Hi Incm||Cdn Div & Incm Equity||479.1||2.42||9.0||3.6||21.9||-31.5||5.3||2.9||24.6|
|RBC Canadian Dividend||Cdn Div & Incm Equity||10,941.4||1.70||8.5||2.6||27.3||-27.0||3.0||15.1||21.1|
|TD Dividend Growth||Cdn Div & Incm Equity||4,265.3||1.92||8.5||2.7||32.8||-29.9||1.3||15.9||23.8|
|BMO Dividend||Cdn Div & Incm Equity||3,948.6||1.70||7.6||0.5||19.8||-26.3||1.8||12.9||20.9|
|Scotia Canadian Dividend||Cdn Div & Incm Equity||2,479.4||1.65||7.5||0.9||26.0||-27.7||6.5||12.8||19.4|
|PH&N Dividend Income-D||Cdn Div & Incm Equity||1,965.2||1.11||7.0||1.1||33.0||-32.5||-3.9||16.5||13.6|
|RBC O'Shaughnessy Cdn Equity||Cdn Focused Equity||1,094.0||1.47||6.9||0.9||27.3||-37.3||8.3||12.3||14.3|
|CIBC Dividend Growth||Cdn Div & Incm Equity||929.1||1.97||6.3||1.9||28.1||-29.1||6.4||12.1||20.3|
|CIBC Canadian Equity Value||Cdn Equity||254.3||2.02||-0.1||2.5||21.7||-25.8||3.4||8.6||9.6|
|Altamira Canadian Equity Growth||Cdn Focused Equity||628.5||2.27||0.1||-0.8||36.2||-34.6||10.8||15.6||22.5|
|CIBC Canadian Equity||Cdn Equity||380.5||2.29||0.5||-0.5||27.9||-37.9||6.4||16.5||17.3|
|National Bank Canadian Equity||Cdn Equity||493.8||2.30||0.6||-2.2||22.7||-29.4||4.8||14.2||17.0|
|PH&N Canadian Growth-D||Cdn Focused Equity||186.0||1.16||1.1||2.6||34.4||-38.3||-5.1||12.8||16.2|
|Scotia Canadian Growth||Cdn Focused Equity||398.9||2.13||1.1||-1.0||29.5||-38.2||9.2||14.8||20.4|
|Renaissance Canadian Growth||Cdn Focused Equity||167.1||2.52||1.3||-3.3||28.4||-35.7||4.8||18.7||15.4|
|Scotia Canadian Blue Chip||Cdn Focused Equity||296.3||2.10||1.7||-1.9||24.0||-30.8||4.9||15.3||19.0|
|S&P/TSX Total Return||3.5||1.3||35.1||-33.0||9.8||17.3||24.1|
|Source: Globe Investor|
© 2007 The Globe and Mail. All rights reserved.
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