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Trimark U.S. Small Companies Class
Not surprisingly, the fund lagged both the benchmark and its peer group in the first quarter of the year. This was because of the drag caused by the nearly 30% currently in cash. This high cash balance is the byproduct of the managers’ struggle to find opportunities that are trading at valuations they believe make them strong investment candidates. In a recent commentary, they expressed continued concern over the valuations in the U.S. small cap space, where the Russell 2000 is trading at 25 times earnings. They say their holdings are trading...
read moreFidelity Small Cap America Fund
Manager Steve MacMillan has done a stellar job with this small cap offering since taking it over in 2011. In the past three years, it has gained more than 33%, outpacing both the index and peer group by a wide margin. This outperformance continued in the first quarter, gaining an impressive 18.9%, thanks to a strong showing from its consumer and technology names, combined with a falling Canadian dollar. The investment process is a fundamental, bottom up approach that looks for companies with strong management, sustainable competitive...
read moreIA Clarington Canadian Conservative Equity Fund
Low volatility and excellent downside protection have been why this has been one of my favourite Canadian equity funds for the past few years. However, a recent uptick volatility has me a bit concerned. According to the managers, the reason for the higher volatility has been the fund’s significant weighting in the energy sector. Because of this, it has been un-characteristically dragged lower in lockstep with the market during the recent selloff. They believe this was an anomaly and that we should see a return to its previous risk reward...
read moreMackenzie Cundill Canadian Balanced Fund
This is another fund that I’ve been concerned about for a while. The main reason is it’s higher than average volatility. While, I do believe that investors will see strong returns over the long term, the level of volatility has remained very high for some time. Considering the management team and the process used, I expect it to deliver returns that are in line with its peer group in up markets. However, it is likely to be hit harder in down markets. Given this, I believe there are a number of other funds that offer a more compelling risk...
read moreAGF Monthly High Income Fund
I have had some concerns about this fund for the past few quarters, given its spotty performance. I believe it has struggled against other balanced funds for a few reasons – first, it has been one of the more aggressively positioned balanced funds and has been underweight fixed income. That has hurt relative performance as Canadian yields dropped in Q1. Second, its equity exposure is concentrated in energy and financials, which have struggled of late. Third, they have about 75% of their USD exposure hedged, which has dragged the CAD...
read moreTD Short Term Bond Fund
It’s not that there is necessarily anything wrong with this fund, it is just that in the current rate environment, I believe it will be tough for it to generate any level of meaningful return with its 1.34% MER. Instead, I would suggest the PowerShares 1-5 Year Laddered Bond Fund or the PH&N Short Term Bond & Mortgage Fund, but only if you can access the low cost D or F series. If not, you’re better off with the PowerShares offering.
read morePH&N Short Term Bond and Mortgage Fund
This has long been one of my favourite short term funds available. It is run by a strong management team, and has delivered decent risk adjusted returns over the long term. At the end of March, its duration was 2.7 years, and it offered a 1.5% yield to maturity. However, with an MER of 1.16% for the advisor sold units, the cost was making the fund uncompetitive, particularly if there are no further rate cuts coming from the Bank of Canada. If you can buy the Series D or Series F units, this is still a great pick, but if you are using the...
read moreFidelity Canadian Growth Company Fund
Fund Company Fidelity Investments Canada Fund Type Canadian Focused Equity Rating A Style Large Cap Growth Risk Level Medium High Load Status Optional RRSP/RRIF Suitability Good Manager Mark Schmehl since March ’11 MER 2.29% Fund Code FID 265 – Front End Units FID 565 – DSC Units Minimum Investment $500 Analysis: Since stepping into the manager’s chair in March 2011, Mark Schmehl has done an excellent job. For the four years ending March 31, it gained an annualized 17.4%, handily outpacing the fund’s benchmark. This puts it firmly in the top...
read moreCambridge Pure Canadian Equity Fund
Fund Company CI Investments Fund Type Cdn Small / Mid Cap Equity Rating A Style Mid Cap Blend Risk Level Medium Load Status Optional RRSP/RRIF Suitability Good Manager Greg Dean since August 2012 Stephen Groff since Aug. 2012 MER 2.42% Fund Code CIG 11109 – Front End Units CIG 11159 – DSC Units Minimum Investment $500 Analysis: This offering is managed by the team of Stephen Groff and Greg Dean, using the same investment process used on other Cambridge managed funds. Their process is driven by a few key beliefs, including a strong commitment...
read moreSentry Diversified Equity Fund
Fund Company Sentry Investments Fund Type Canadian Focused Equity Rating A Style All Cap Blend Risk Level Medium Load Status Optional RRSP/RRIF Suitability Excellent Manager Michael Simpson since Jan. ‘13 MER 2.80% Fund Code NCE 722 – Front End Units NCE 322 – DSC Units Minimum Investment $500 Analysis: This is a fund that is tough to classify. I see it almost as a blend between the large cap focused Sentry Canadian Income Fund and the Sentry Small and Mid Cap Income Fund. It is managed using the same investment process that looks for...
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