Mutual Fund Updates

CI Signature Canadian Resources Fund

Over the past couple of years, higher levels of volatility have become the norm. This has also been true in the natural resources sector, which has seen levels of volatility that have been significantly higher than the broader market indices. The Signature Canadian Resource Fund is one fund that has done a good job managing this volatility, with the lowest standard deviation of all of the resource funds in our coverage universe.

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Dynamic Power Canadian Growth Fund

2011 was not exactly kind to Rohit Sehgal and the Dynamic Power Canadian Growth Fund, which dropped by more than 26% during the year. According to the manager, this underperformance was the result of their overweight exposure in Canada’s growth oriented sectors, an underweight position in defensive names and an underweight in the U.S. market.

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Dynamic Power Balanced Fund

Like other funds that carry Dynamic’s Power label, this Canadian neutral balanced fund is not for the faint of heart. It carries a target asset mix of 50% equities and 50% bonds, although the managers have some flexibility around that. As of January 31, the fund was nearly 60% stocks, 38% bonds and 2% in cash.

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CI Global Small Companies Fund

Managed by the same firm as the CI American Value Fund, it’s not surprising the process is very similar. They are looking for well managed companies with a demonstrated history of increasing shareholder yield through dividends, share buybacks or debt repayments.

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TD Canadian Bond Index

For cost conscious investors seeking exposure to the Canadian bond market, this mutual fund is a good choice. The fund is designed to track the DEX Universe Bond Index, after fees.

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Templeton Global Smaller Companies Fund

In March 2011, Brad Radin, long time manager of the Templeton Global Smaller Companies Fund left the company. He was replaced by Martin Cobb, who has been with Templeton since 2003 and has been in the industry for the past 18 years.

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