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A rough and tumble year for Dynamic Value

What are we looking for?

Fund research firm Morningstar Canada recently held its Canadian Investment Awards night to name the 2011 winners. Given that these high-profile funds can spur investors to invest in them, let's look at how some of the 2010 winners have fared this year.

The screen

Because there are many awards, we limited the winners to 13 of the most popular fund categories, and ones whose performance could be impacted by the euro-zone debt crisis. We looked at returns for the first 11 months of 2011.

What did we find?

One of the winners is mired in a double-digit loss, and its long-time manager has gone.

Dynamic Value Fund of Canada, which won the award for best fund in the Canadian equity category, has had a rough year, shedding over 19 per cent.

And David Taylor, who ran that fund with a contrarian value approach to investing, is no longer on the job. He quit the Dynamic fund family and Goodman & Co. Investment Counsel Ltd. in October. He left eight months after Bank of Nova Scotia acquired DundeeWealth Management Inc., which runs the Dynamic fund family. While he tried to negotiate a deal to run Dynamic funds as an external adviser instead of working in a bank culture, that did not work out. He plans to set up his own shop next year.

Despite having a solid track record since 2003, Dynamic Value Fund of Canada struggled this year because of a heavy weighting in hard-hit resource stocks. The fund is now under the wing of Cecilia Mo, who jumped ship from Fidelity Investments Canada, where she ran dividend income funds. Her investment style is more conservative than her predecessor.

The lesson for investors is that there are no guarantees about the future performance of award-winning funds, or that a fund manager will even be around a year later.



Last reportedYTD to1 year to3 years toAnnual returns (Jan. 1 - Dec. 31)
FundAward categories - BestMERassets in $millionsNov. 30, 2011Oct 31, 2011Oct 31, 201120102009200820072006
TD Monthly IncomeCanadian Balanced1.485455.61.87%3.63%9.90% 9.82%30.67%-23.40%3.12%11.43%
Dynamic DividendCanadian Dividend and Income Equity1.58512.64.40%5.13%9.63%10.85%18.08%-24.96%6.30%10.53%
Dynamic Value Fund of CanadaCanadian Equity2.442061.0-19.08%-10.73%9.24%14.70%43.05%-28.15%4.53%26.47%
TD Canadian BondCanadian Fixed Income1.1110017.36.69%4.67%8.60%6.25%9.76%2.56%1.78%2.55%
Dynamic Small BusinessCanadian Small/Mid Cap Equity2.77493.60.33%5.55%21.04%27.26%38.84%-18.05%18.53%17.93%
AGF Emerging MarketsEmerging Markets Equity3.071348.9-12.37%-9.68%20.51%15.33%60.28%-35.25%12.43%40.41%
Mackenzie Ivy European FundEuropean Equity2.4896.12.33%-4.03%-0.66%-12.09%9.86%-37.41%-5.54%29.12%
CI Signature High IncomeGlobal Balanced1.602912.93.32%3.76%13.37%15.31%30.57%-21.46%0.13%6.72%
Dynamic Power Global Growth ClGlobal Equity3.81572.42.00%1.86%13.62%22.29%29.96%-47.21%45.02%11.45%
Invesco International Growth ClassInternational Equity2.74101.2-4.56%-5.39%6.07%7.03%17.32%-35.20%-2.71%31.50%
Dynamic Focus+ ResourceNatural Resources Equity4.78764.8-13.31%-0.16%36.94%35.52%113.00%-50.68%14.33%58.68%
Dynamic American ValueU.S. Equity2.49583.4-2.35%2.27%7.70%10.12%16.70%-24.68%5.10%16.27%
Mackenzie Univ. Am Gwth (Unhgd) ClU.S. Small/Mid Cap Equity2.78166.91.84%5.62%7.16%11.74%11.24%-0.54%-0.40%14.78%
S&P/TSX Total Return-7.13%-0.83%11.09%17.61%35.06%-33.00%9.83%17.26%
S&P/TSX Small Cap Total Return-14.61%-3.15%22.24%35.10%62.38%-50.04%0.44%21.89%
S&P 500 Composite ($ Cdn)3.29%1.85%7.18%5.51%-23.76%-12.21%13.56%
Source: Globe Investor, Morningstar Canada

© 2007 The Globe and Mail. All rights reserved.

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