Skip navigation

Mutual Fund News

Ranking the stock funds of the Big Six banks

What are we looking for?

The leaders and laggards over a decade among Canadian stock funds sold by the Big Six banks.

The search

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)
10-yr YTD 2009 2008 2007 2006 2005
Top 8
Renaissance Millennium Hi IncmCdn Div & Incm Equity479.12.429.03.621.9-
RBC Canadian DividendCdn Div & Incm Equity10,941.41.708.52.627.3-
TD Dividend GrowthCdn Div & Incm Equity4,265.31.928.52.732.8-29.91.315.923.8
BMO DividendCdn Div & Incm Equity3,948.61.707.60.519.8-26.31.812.920.9
Scotia Canadian DividendCdn Div & Incm Equity2,479.41.657.50.926.0-27.76.512.819.4
PH&N Dividend Income-DCdn Div & Incm Equity1,965.
RBC O'Shaughnessy Cdn EquityCdn Focused Equity1,094.01.476.90.927.3-37.38.312.314.3
CIBC Dividend GrowthCdn Div & Incm Equity929.11.976.31.928.1-29.16.412.120.3
Bottom 8
CIBC Canadian Equity ValueCdn Equity254.32.02-0.12.521.7-
Altamira Canadian Equity GrowthCdn Focused Equity628.52.270.1-0.836.2-34.610.815.622.5
CIBC Canadian EquityCdn Equity380.52.290.5-0.527.9-37.96.416.517.3
National Bank Canadian EquityCdn Equity493.82.300.6-2.222.7-29.44.814.217.0
PH&N Canadian Growth-DCdn Focused Equity186.
Scotia Canadian GrowthCdn Focused Equity398.92.131.1-1.029.5-
Renaissance Canadian GrowthCdn Focused Equity167.12.521.3-3.328.4-35.74.818.715.4
Scotia Canadian Blue ChipCdn Focused Equity296.32.101.7-1.924.0-30.84.915.319.0
S&P/TSX Total Return3.51.335.1-33.09.817.324.1
Source: Globe Investor

© 2007 The Globe and Mail. All rights reserved.

Search Fund News

Advanced Search

Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.

Discover a wealth of investment information and and exclusive features.

Free E-Mail Newsletters

  • Morning news headlines
  • Morning business headlines
  • Financial highlights
  • Tech alert
  • Leisure

Sign-up for our free newsletters

Back to top