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Fidelity Canadian Large Cap Fund
For the longest time this has been one of the strongest Canadian focused equity funds around. So far this year it has lagged considerably, gaining 6.5%, which is about half what the S&P/TSX Composite Index earned. The reason is the fund’s lack of exposure to materials, a significant under-weight in energy, and no bank holdings. Unfortunately for investors, these were the best performing sectors in the quarter. Despite a lackluster six months, I’m not ready to pull the fund from the list. The manager continues to stick with his disciplined...
read moreAGF Monthly High Income
This was the strongest performing balanced fund on my recommended list in the second quarter due to its overweight position in equities. The managers are becoming increasingly concerned about the health of the equity markets, causing them to pare back their exposure over the quarter. The equity weight was cut from 63% to 58%, while the fixed income increased from 28% to 34%. While it is still one of the more aggressively positioned balanced funds, these moves are expected to help to protect capital if we see a meaningful pullback in the...
read moreChou Associates Fund
I’m starting to get a bit concerned about this concentrated value fund managed by Francis Chou. After stellar years in 2012 and 2013 performance appears to be slowing. It struggled in the second quarter largely the result of its holdings in three stocks; Resolute Forest Products, Sears Holdings, and MBIA Inc. Combined, these three names make up 24% of the fund. This highlights the dangers of a concentrated portfolio in that there is nowhere to hide if the markets want to punish a few of your holdings. Short term, there may be some more pain...
read moreRenaissance Global Markets Fund
Fund Company CIBC Asset Management Fund Type Global Equity Rating D Style Blend Risk Level Medium Load Status Optional RRSP/RRIF Suitability Good TFSA Suitability Good Manager David Winters since October 2006 MER 2.62% Code ATL 1029 – Front End Units ATL 1873 – DSC Units Minimum Investment $500 Analysis: Despite dramatically underperforming the MSCI World Index in 2012 and 2013, I still believe this go anywhere global equity fund can be a great core holding for most investors. Manager David Winters uses a value tilted approach, looking for...
read moreDynamic Power American Growth Fund
Fund Company Dynamic Funds Fund Type U.S. Equity Rating B Style Large Cap Growth Risk Level High Load Status Optional RRSP/RRIF Suitability Fair TFSA Suitability Fair Manager Noah Blackstein since July 1998 MER 2.46% Code DYN 004 – Front End Units DYN 704 – DSC Units Minimum Investment $500 Analysis: Like most of the other funds under the Power banner, this is not for the faint of heart. Manager Noah Blackstein uses a very concentrated, growth approach in managing this fund. Because of this, it tends to be considerably more volatile than...
read moreSentry Canadian Income Fund
Fund Company Sentry Investments Fund Type Canadian Dividend & Income Equity Rating A Style Large Cap Blend Risk Level Medium Load Status Optional RRSP/RRIF Suitability Excellent TFSA Suitability Excellent Manager Michael Simpson since February 2002 Aubrey Hearn since January 2012 MER 2.67% Code NCE 717 – Front End Units NCE 317 – DSC Units Minimum Investment $500 Analysis: Managed by the team of Michael Simpson and Aubrey Hearn, this fund invests in a mix of large and mid-cap income producing securities like common equity, fixed income...
read moreMawer International Equity Fund
Fund Company Mawer Investment Management Fund Type International Equity Rating B Style Large Cap Blend Risk Level Medium Load Status No Load RRSP/RRIF Suitability Excellent TFSA Suitability Excellent Manager David Ragan since November 2007 Jim Hall since March 2010 MER 1.49% Code TDB 645 – No Load Units Minimum Investment $5,000 Analysis: This has been one of the “go to” international equity funds for as long as I been in the investment business and then some. It is managed using a “growth at a reasonable price” approach that looks for wealth...
read moreMawer Balanced Fund
In January, I had named this the one fund to own for 2014, and I’m adding it to the list of those funds I believe will be strong performers in the second half of the year. So far this year, it’s done well, gaining 6.5%. But where this fund really shines is over the long term with performance numbers that leave its peers in the dust. To achieve this, the fund invests in other funds that are offered by Mawer. Each of the underlying Mawer funds are top notch, except for maybe the U.S. equity fund, which has struggled to differentiate itself from...
read moreMackenzie Ivy Foreign Equity Fund
This is another one of my favourite global equity funds, particularly for periods of higher than normal volatility. When volatility returns, and mark my words, it will, this is the global equity fund you will want to be holding. In a down market, it holds up significantly better than other global equity offerings. For example, in 2008 when the average fund was down 30%, it was down only 6.7%, and in 2011, the average fund was down 6.7%, yet this fund was higher by 3.2%. The tradeoff, of course, is that you will lag behind in a sharply rising...
read moreMackenzie Ivy Canadian Fund
Like all Ivy branded funds, the Canadian equity offering is well regarded for its ability to withstand market selloffs better than most. It used to be the biggest knock on this fund was that you would be left way behind when equity markets were rallying. That still holdstosomeextent, but it is much better than it used to be. If I look at its upside capture ratio, which measures how well a fund performs when markets are rising, it has been improving dramatically over the past few years. For the past three years, it has participated in roughly...
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