What we're looking at
Thanks to our strong dollar and our heavy commodity exposure, the Canadian stock market has been a much better spot for investors in the past decade than global markets. In 2011, however, the tables have turned and global markets are stronger. Let's look at some funds you can investigate if you're looking for exposure to stock markets outside Canada.
All funds in the global and international equity categories have been ranked by their 10-year returns to April 30. We've also provided one-year results so you can see how these funds have been doing lately. The quartile numbers tell you how a fund's one-year returns have done in comparison with others in the category. First quartile is best, fourth is worst. Note that global equity funds may include all countries, including a sliver of Canada in some cases, while international equity funds invest outside North America.
What we found
First off, it should be noted that the average global and international equity funds lost 0.3 per cent and 0.6 per cent, respectively, on an annual basis over the 10 years to April 30. The returns for most of the funds in today's screen aren't spectacular when viewed on their own, but in the context of what global funds have done in general, they're good. It's also worth noting how many of the top 10-year global and international equity funds are big players in the recent global stock market rally.
An important question to ask before buying a global or international equity fund is whether it uses currency hedging to limit the effect of currency volatility on returns. An example of a fund that has used hedging: Dynamic Global Discovery. An example of a fund that has not used it: Mawer World Investment.
Hedging was a big help to global fund returns as the Canadian dollar soared in the past decade. But with our dollar now at high levels versus the U.S. dollar and other currencies, it's reasonable to expect some slippage in the years ahead. That would give global funds that aren't using hedging an advantage.
LONG-TERM TOP PERFORMERS IN THE GLOBAL AND INT'L EQUITY FUND CATEGORIES
|Fund Name||Category||Assets ($-mil)||MER (%)||10-yr % rtn (Apr. 30)||1-yr % rtn (Apr. 30)||1-yr Quartile|
|Dynamic Global Discovery||Global Equity||827.5||2.63||6.89||11.46||2|
|Dynamic Power Global Growth Cl||Global Equity||652.3||2.45||6.71||41.42||1|
|Mackenzie Cundill Value 'A'||Global Equity||209.2||2.16||4.73||10.75||2|
|Mackenzie Cundill Value Class||Global Equity||571.5||2.49||4.47||10.26||2|
|TD Entertainment & Communications||Global Equity||136.0||2.75||4.44||18.96||1|
|Mackenzie Cundill Value 'C'||Global Equity||5,287.8||2.46||4.37||10.39||2|
|GBC International Growth||International Equity||109.4||1.95||3.69||20.80||1|
|Mawer World Investment||International Equity||363.2||1.47||3.65||16.93||1|
|Primerica Aggressive Growth||Global Equity||707.8||2.69||3.51||11.26||2|
|Dynamic Global Value Fund||Global Equity||944.1||2.39||3.21||4.76||4|
|Mackenzie Ivy Foreign Equity-A||Global Equity||1,941.4||2.47||2.60||8.12||3|
|Invesco International Growth Class||International Equity||122.0||2.64||2.08||12.90||2|
|CIBC International Small Companies||International Equity||66.2||2.87||1.78||14.99||1|
|Tradex Global Equity||Global Equity||9.2||2.49||1.68||13.15||1|
|Mackenzie Focus International Class||International Equity||22.1||2.76||1.42||7.91||3|
|Acadian Core International Equity||International Equity||176.5||1.33||1.35||13.69||1|
|Integra International Equity||International Equity||48.0||1.31||1.13||10.89||2|
|Trimark Fund-SC||Global Equity||959.6||1.62||1.12||7.32||3|
|Investors Global-C||Global Equity||n/a||2.90||1.10||3.99||4|
|AGF Global Equity Class||Global Equity||363.7||2.83||0.96||11.88||2|
|CI International Value||International Equity||91.8||2.44||0.55||9.04||3|
|Renaissance International Equity||International Equity||71.5||2.69||0.47||7.07||4|
|Renaissance Global Focus||Global Equity||64.4||2.74||0.45||12.70||1|
© 2007 The Globe and Mail. All rights reserved.
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.