Last-minute ETF picks for
RRSP portfolios
RRSP portfolios
SHIRLEY
WON
WON
We
asked experts to suggest ETFs that would be suitable in an RRSP for both
conservative and aggressive investors.
asked experts to suggest ETFs that would be suitable in an RRSP for both
conservative and aggressive investors.
Daniel Straus, ETF analyst with National Bank Financial, Toronto
Recommendation: BMO Low Volatility U.S. Equity ETF (conservative, ZLU-TSX),
with a management expense ratio (MER) of 0.35 per cent
with a management expense ratio (MER) of 0.35 per cent
This
ETF, which tracks 100 of the least market-sensitive U.S. stocks, is a way to tap into
the world’s largest economy, Mr. Straus says. “We like this one for its low MER
… and its simplicity. It does not hedge its U.S. dollar currency exposure. As
the U.S. dollar strengthens versus the Canadian dollar, currency movements
should help its performance.” By holding this ETF in an RRSP, Canadians can
avoid the U.S.
withholding tax on dividends. During periods of volatility, it can outperform
market-capitalization-weighted indexes. Last year, the ETF posted a total
return of 35 per cent in Canadian dollar terms, compared with 24 per cent for
the S&P 500 Index.
ETF, which tracks 100 of the least market-sensitive U.S. stocks, is a way to tap into
the world’s largest economy, Mr. Straus says. “We like this one for its low MER
… and its simplicity. It does not hedge its U.S. dollar currency exposure. As
the U.S. dollar strengthens versus the Canadian dollar, currency movements
should help its performance.” By holding this ETF in an RRSP, Canadians can
avoid the U.S.
withholding tax on dividends. During periods of volatility, it can outperform
market-capitalization-weighted indexes. Last year, the ETF posted a total
return of 35 per cent in Canadian dollar terms, compared with 24 per cent for
the S&P 500 Index.
Recommendation: iShares MSCI Europe IMI Index ETF (aggressive, XEH-TSX),
MER not yet available but management-fee portion is 0.25 per cent
MER not yet available but management-fee portion is 0.25 per cent
This
ETF, which tracks 1,000 companies, is a play on a European economic rebound
that could be triggered by recent economic stimuli, Mr. Straus says. The fund
is the currency-hedged version of the TSX-listed ETF known as XEU. “We opted
for the hedged version to mitigate unwanted currency-related volatility.”
Launched in early 2014, the ETF’s largest country exposures are Britain, Switzerland,
France and Germany.
Because of the ETF’s regional concentration, it is likely to be more volatile
than a broader international equity offering, and is more suitable for
investors with higher risk tolerances, he noted.
ETF, which tracks 1,000 companies, is a play on a European economic rebound
that could be triggered by recent economic stimuli, Mr. Straus says. The fund
is the currency-hedged version of the TSX-listed ETF known as XEU. “We opted
for the hedged version to mitigate unwanted currency-related volatility.”
Launched in early 2014, the ETF’s largest country exposures are Britain, Switzerland,
France and Germany.
Because of the ETF’s regional concentration, it is likely to be more volatile
than a broader international equity offering, and is more suitable for
investors with higher risk tolerances, he noted.
Tyler Mordy, co-chief investment officer for Hahn Investment Stewards,
Toronto
Toronto
Recommendation: Vanguard Dividend Appreciation ETF (conservative, VIG-NYSE),
MER of 0.10 per cent
MER of 0.10 per cent
This
U.S.-listed ETF tracks American companies that have increased their dividends
for 10 consecutive years or more. Mr. Mordy likes it “because it is dominated
by a number of high-quality multinational corporations. Like all Vanguard ETFs,
it is very reasonably priced.” Inside an RRSP, its dividends avoid being hit by
U.S.
withholding taxes. Canadian investors benefit from a rising U.S. dollar when
returns are converted back to domestic currency, and “we continue to forecast
further strengthening [of the greenback],” he says. The ETF has returned an
annualized 13.8 per cent for the five years ending Jan. 31.
U.S.-listed ETF tracks American companies that have increased their dividends
for 10 consecutive years or more. Mr. Mordy likes it “because it is dominated
by a number of high-quality multinational corporations. Like all Vanguard ETFs,
it is very reasonably priced.” Inside an RRSP, its dividends avoid being hit by
U.S.
withholding taxes. Canadian investors benefit from a rising U.S. dollar when
returns are converted back to domestic currency, and “we continue to forecast
further strengthening [of the greenback],” he says. The ETF has returned an
annualized 13.8 per cent for the five years ending Jan. 31.
Recommendation: iShares MSCI India (aggressive, INDA-BATS), MER of
0.68 per cent
0.68 per cent
This
U.S. ETF, which trades on BATS Global Markets, tracks about 85 per cent of the
Indian equity market. “Indian companies have a significant growth potential,”
Mr. Mordy says. “The country’s resurgent economic optimism has been ramped up
by a belief that newly elected ‘pro-business’ Prime Minister Narendra Modi can
return India to its high growth path of the mid-2000s.” India should
benefit from a growing middle class, falling interest rates and disinflationary
pressures driven primarily by lower oil prices. This ETF’s fee is
“competitively priced,” given costs associated with trading on India’s
National Exchange, Mr. Mordy added.
U.S. ETF, which trades on BATS Global Markets, tracks about 85 per cent of the
Indian equity market. “Indian companies have a significant growth potential,”
Mr. Mordy says. “The country’s resurgent economic optimism has been ramped up
by a belief that newly elected ‘pro-business’ Prime Minister Narendra Modi can
return India to its high growth path of the mid-2000s.” India should
benefit from a growing middle class, falling interest rates and disinflationary
pressures driven primarily by lower oil prices. This ETF’s fee is
“competitively priced,” given costs associated with trading on India’s
National Exchange, Mr. Mordy added.
John Gabriel, ETF strategist at Morningstar Inc., Chicago
Recommendation: Vanguard FTSE Developed Markets ETF (conservative, VEA-NYSE),
MER of 0.09 per cent
MER of 0.09 per cent
This
U.S.-listed ETF, which holds companies in developed foreign markets, is a good
way for Canadian investors to diversify if they have a lot of North American
equity exposure, Mr. Gabriel says. With the U.S. market near all-time highs, it
may be a good time to reduce exposure to fully valued American stocks and put
some money into out-of-favour international stocks, he says. “The fund is one
of the cheapest international ETFs.” European stocks represent about 62 per
cent of the ETF. Holding this fund within an RRSP avoids U.S.
withholding taxes, while the strengthening of the U.S. dollar against the
loonie benefits Canadian investors, he added.
U.S.-listed ETF, which holds companies in developed foreign markets, is a good
way for Canadian investors to diversify if they have a lot of North American
equity exposure, Mr. Gabriel says. With the U.S. market near all-time highs, it
may be a good time to reduce exposure to fully valued American stocks and put
some money into out-of-favour international stocks, he says. “The fund is one
of the cheapest international ETFs.” European stocks represent about 62 per
cent of the ETF. Holding this fund within an RRSP avoids U.S.
withholding taxes, while the strengthening of the U.S. dollar against the
loonie benefits Canadian investors, he added.
Recommendation: WisdomTree Emerging Markets SmallCap Dividend ETF (aggressive, DGS-NYSE),
MER of 0.63 per cent
MER of 0.63 per cent
With
this ETF, investors can tap into growth trends in the developing world, while
its dividend criteria help screen for higher-quality firms, Mr. Gabriel says.
Smaller emerging-markets companies, which typically serve domestic customers,
can outperform larger-cap peers that tend to be skewed toward multinationals
and/or state-owned enterprises, he says. Over the five years ending Jan. 31,
this ETF has posted an annualized return of 4.58 per cent, compared with 2.29
per cent for the MSCI Emerging Markets Index. The fee for this ETF is in line
with similar, smaller-cap emerging markets ETFs, he says.
this ETF, investors can tap into growth trends in the developing world, while
its dividend criteria help screen for higher-quality firms, Mr. Gabriel says.
Smaller emerging-markets companies, which typically serve domestic customers,
can outperform larger-cap peers that tend to be skewed toward multinationals
and/or state-owned enterprises, he says. Over the five years ending Jan. 31,
this ETF has posted an annualized return of 4.58 per cent, compared with 2.29
per cent for the MSCI Emerging Markets Index. The fee for this ETF is in line
with similar, smaller-cap emerging markets ETFs, he says.
John Hood, president and portfolio manager at J.C. Hood Investment
Counsel Inc., Pickering, Ont.
Counsel Inc., Pickering, Ont.
Recommendation: iShares Core S&P 500 ETF (conservative, XSP-TSX),
MER: 0.10 per cent
MER: 0.10 per cent
This
ETF, which tracks 500 of the largest U.S.
stocks, is a play on a growing U.S.
economy that is “in full recovery mode,” Mr. Hood says. While some people may
suggest that U.S.
stocks have gotten pricey, “my response is that the economy will grow into
those valuations,” he says. The ETF is also hedged against currency risk. Mr.
Hood is not worried about a declining U.S. dollar against the loonie, but
rather the likelihood of the Canadian dollar rising once battered oil prices
start bouncing back. The fee for this ETF is a bargain after being slashed from
0.25 per cent last year, he noted.
ETF, which tracks 500 of the largest U.S.
stocks, is a play on a growing U.S.
economy that is “in full recovery mode,” Mr. Hood says. While some people may
suggest that U.S.
stocks have gotten pricey, “my response is that the economy will grow into
those valuations,” he says. The ETF is also hedged against currency risk. Mr.
Hood is not worried about a declining U.S. dollar against the loonie, but
rather the likelihood of the Canadian dollar rising once battered oil prices
start bouncing back. The fee for this ETF is a bargain after being slashed from
0.25 per cent last year, he noted.
Recommendation: BMO S&P/TSX Equal Weight Oil & Gas Index ETF (aggressive, ZEO-TSX), MER of 0.62 per
cent
cent
This
ETF makes an equal bet on each of its energy stocks, as opposed to allowing
firms with larger market values to dominate. The price of this ETF’s units have
“come off dramatically” as the price of crude oil has plunged in recent months,
says Mr. Hood. “It’s the old story. Buy when others are selling.” A lot of stocks
could bounce back by 50 per cent by year end, although some companies may have
to cut their dividends, he suggested. The fee for the BMO ETF is just a tad
higher than that of the iShares S&P/TSX Capped Energy Index ETF, but it
also includes exposure to pipeline firms Enbridge Inc. and TransCanada Corp.,
he adds.
ETF makes an equal bet on each of its energy stocks, as opposed to allowing
firms with larger market values to dominate. The price of this ETF’s units have
“come off dramatically” as the price of crude oil has plunged in recent months,
says Mr. Hood. “It’s the old story. Buy when others are selling.” A lot of stocks
could bounce back by 50 per cent by year end, although some companies may have
to cut their dividends, he suggested. The fee for the BMO ETF is just a tad
higher than that of the iShares S&P/TSX Capped Energy Index ETF, but it
also includes exposure to pipeline firms Enbridge Inc. and TransCanada Corp.,
he adds.
INVESTING
Six conservative
mutual-fund picks for an RRSP Add to ...
mutual-fund picks for an RRSP Add to ...
SHIRLEY
WON
WON
Special to The Globe and Mail
Published Friday, Jan. 23
2015, 5:00 AM EST
2015, 5:00 AM EST
Global
equity funds can also reduce risk by diversifying away from one stock market.
Just be mindful of fees: They can eat away at returns over time.
equity funds can also reduce risk by diversifying away from one stock market.
Just be mindful of fees: They can eat away at returns over time.
We
asked analysts to suggest two conservative fund picks for an RRSP.
asked analysts to suggest two conservative fund picks for an RRSP.
Dan Hallett, director of asset management at HighView Financial Group
- Steadyhand Founders Fund
- Fund category: Tactical balanced
- MER (management expense ratio): 1.34 per cent for a
$10,000-minimum investment, or even less with higher minimums
This
fund is invested in other Steadyhand equity and income funds managed by firms
with good track records.
fund is invested in other Steadyhand equity and income funds managed by firms
with good track records.
It
also offers investors unique fee breaks, Mr. Hallett says. Fee discounts for
larger investments, along with rebates for owning the fund for more than five
years, could quickly take the cost below 1 per cent annually, he noted.
also offers investors unique fee breaks, Mr. Hallett says. Fee discounts for
larger investments, along with rebates for owning the fund for more than five
years, could quickly take the cost below 1 per cent annually, he noted.
“This
[approach] encourages longer holding periods, which my research and others have
linked to higher investor returns,” he says.
[approach] encourages longer holding periods, which my research and others have
linked to higher investor returns,” he says.
Balanced
funds are ideally suited to conservative investors, he said. This fund, whose
asset mix is determined by Steadyhand Investment Funds founder Tom Bradley,
held 17 per cent in cash at the end of 2014. The cash will be “useful when we
get a more serious market decline,” Mr. Hallett said. Launched in early 2012,
the fund has gained an annualized 11.06 per cent for the two years ending Dec.
31.
funds are ideally suited to conservative investors, he said. This fund, whose
asset mix is determined by Steadyhand Investment Funds founder Tom Bradley,
held 17 per cent in cash at the end of 2014. The cash will be “useful when we
get a more serious market decline,” Mr. Hallett said. Launched in early 2012,
the fund has gained an annualized 11.06 per cent for the two years ending Dec.
31.
- CI Signature High Income
- Fund category: Global neutral balanced
- MER: 1.6 per cent
This
$10-billion global stock-and-bond fund has maintained “strong performance
despite attracting a boatload of new money from investors,” Mr. Hallett says.
$10-billion global stock-and-bond fund has maintained “strong performance
despite attracting a boatload of new money from investors,” Mr. Hallett says.
The
fund, which has returned an annualized 10.32 per cent over the 15 years ending
Dec. 31, is run by a team overseen by Eric Bushell, chief investment officer of
CI Investment’s Signature unit. Launched as a Canadian-focused offering
emphasizing income trusts, real estate investments trusts and high-yield bonds,
the fund later took on a more global approach.
fund, which has returned an annualized 10.32 per cent over the 15 years ending
Dec. 31, is run by a team overseen by Eric Bushell, chief investment officer of
CI Investment’s Signature unit. Launched as a Canadian-focused offering
emphasizing income trusts, real estate investments trusts and high-yield bonds,
the fund later took on a more global approach.
“It
is no stodgy balanced fund,” Mr. Hallett says. With its fixed-income portion in
corporate and high yield bonds, “it takes on more credit risk … but investors
have been nicely rewarded,” he notes. The fund’s lower fee makes it a bargain
compared with many similar funds, and that certainly has been a “material
factor” in its long-term returns, he said.
is no stodgy balanced fund,” Mr. Hallett says. With its fixed-income portion in
corporate and high yield bonds, “it takes on more credit risk … but investors
have been nicely rewarded,” he notes. The fund’s lower fee makes it a bargain
compared with many similar funds, and that certainly has been a “material
factor” in its long-term returns, he said.
James Gauthier, head of investment fund research at HollisWealth Inc.
- EdgePoint Global Growth & Income
Portfolio - Fund category: Global equity balanced
- MER: 2.12 per cent with a minimum investment
of $15,000
This
global stock-and-bond fund is ideal for an RRSP because it is managed by
“excellent stock pickers,” while the fixed-income exposure provides a bit of
buffer in falling markets, Mr. Gauthier says. “It also charges a very
attractive fee.”
global stock-and-bond fund is ideal for an RRSP because it is managed by
“excellent stock pickers,” while the fixed-income exposure provides a bit of
buffer in falling markets, Mr. Gauthier says. “It also charges a very
attractive fee.”
The
fund is run by a team led by Tye Bousada and Geoff MacDonald, who helped
co-found EdgePoint Wealth Management Inc. in 2008 after leaving Invesco Canada
Ltd. The team looks for stocks from companies with margins of safety, strong
barriers to entry and strong management teams that can build their businesses
regardless of the economic environment, Mr. Gauther said.
fund is run by a team led by Tye Bousada and Geoff MacDonald, who helped
co-found EdgePoint Wealth Management Inc. in 2008 after leaving Invesco Canada
Ltd. The team looks for stocks from companies with margins of safety, strong
barriers to entry and strong management teams that can build their businesses
regardless of the economic environment, Mr. Gauther said.
Top
holdings include Microsoft, Wells Fargo, Alere and WABCO Holdings. The fund,
which recently held nearly 30 per cent in corporate bonds and 10 per cent in
cash, has posted an annualized 12.28-per-cent return for the five years ending
Dec. 31.
holdings include Microsoft, Wells Fargo, Alere and WABCO Holdings. The fund,
which recently held nearly 30 per cent in corporate bonds and 10 per cent in
cash, has posted an annualized 12.28-per-cent return for the five years ending
Dec. 31.
- Cambridge Canadian Asset Allocation
- Fund category: Tactical balanced
- MER: 2.45 per cent
The
managers of this Canadian stock-and-bond fund will change the portfolio’s asset
mix depending on economic conditions, Mr. Gauthier says.
managers of this Canadian stock-and-bond fund will change the portfolio’s asset
mix depending on economic conditions, Mr. Gauthier says.
“The
fund’s equity exposure has been as low as about 50 per cent to as high as 93
per cent,” he says. More recently, it held 65 per cent in stocks and 26 per
cent in cash.
fund’s equity exposure has been as low as about 50 per cent to as high as 93
per cent,” he says. More recently, it held 65 per cent in stocks and 26 per
cent in cash.
The
fund is overseen by Alan Radlo and Brandon Snow, who are co-chief investment
officers of CI Investment’s Cambridge
unit, while Robert Swanson determines the asset mix. The team has done a good
job of adding value, but big shocks to the stock market can “rock this fund a
bit more than the typical balanced fund,” Mr. Gauthier said. “The fee is not
the lowest in the category, but reasonable,” he adds.
fund is overseen by Alan Radlo and Brandon Snow, who are co-chief investment
officers of CI Investment’s Cambridge
unit, while Robert Swanson determines the asset mix. The team has done a good
job of adding value, but big shocks to the stock market can “rock this fund a
bit more than the typical balanced fund,” Mr. Gauthier said. “The fee is not
the lowest in the category, but reasonable,” he adds.
The
fund has returned an annualized 8.73 per cent for the five years ending Dec.
31.
fund has returned an annualized 8.73 per cent for the five years ending Dec.
31.
Christopher Davis, director of manager research at Morningstar Canada
- Mawer Global Equity
- Fund category: Global equity
- MER: 1.45 per cent with minimum investment of
$5,000
Canadian
investors are generally heavily into domestic stocks, so a global stock fund
may be a good addition to an RRSP, Mr. Davis says. “I don’t think investors
should put all their chips on a country that represents less than five per cent
of the global stock market.”
investors are generally heavily into domestic stocks, so a global stock fund
may be a good addition to an RRSP, Mr. Davis says. “I don’t think investors
should put all their chips on a country that represents less than five per cent
of the global stock market.”
Slumping
resource stocks represent a big chunk of Canada’s market, including energy
names battered recently by plunging oil prices, he said. “It highlights the
risk of betting too much on Canada.”
resource stocks represent a big chunk of Canada’s market, including energy
names battered recently by plunging oil prices, he said. “It highlights the
risk of betting too much on Canada.”
Mawer
Global Equity, which is overseen by Paul Moroz of Mawer Investment Management
Ltd., takes a “relatively conservative approach” and focuses on quality
companies, Mr. Davis said. “It has been less volatile in down markets, while
doing relatively well in up markets.”
Global Equity, which is overseen by Paul Moroz of Mawer Investment Management
Ltd., takes a “relatively conservative approach” and focuses on quality
companies, Mr. Davis said. “It has been less volatile in down markets, while
doing relatively well in up markets.”
For
the five years ending 2014, the fund has posted an average annual return of
14.53 per cent.
the five years ending 2014, the fund has posted an average annual return of
14.53 per cent.
- PH&N Bond Fund
- Fund category: Canadian fixed income
- MER: 1.16 per cent for C series; 0.60 per
cent for D series with a minimum of $25,000
Investors
should have some bond exposure despite concerns over rising interest rates, Mr.
Davis says. The PH&N Bond Fund, which is overseen by the PH&N
fixed-income unit at RBC Global Asset Management, gained more than 8 per cent
last year.
should have some bond exposure despite concerns over rising interest rates, Mr.
Davis says. The PH&N Bond Fund, which is overseen by the PH&N
fixed-income unit at RBC Global Asset Management, gained more than 8 per cent
last year.
“Any
bond fund doing well last year was pretty surprising,” he said. “Nobody
expected bond yields to go down because they were so low already. … It’s just
an example of the potential peril of trying to time the market.”
bond fund doing well last year was pretty surprising,” he said. “Nobody
expected bond yields to go down because they were so low already. … It’s just
an example of the potential peril of trying to time the market.”
The
fund, which invests in Canadian government and corporate bonds, also benefits
from reasonable fees, he noted. The younger C series posted an annualized gain
of 4.56 per cent over the five years ending Dec. 31. The D series returned an
annualized 6.91 per cent over 20 years.
fund, which invests in Canadian government and corporate bonds, also benefits
from reasonable fees, he noted. The younger C series posted an annualized gain
of 4.56 per cent over the five years ending Dec. 31. The D series returned an
annualized 6.91 per cent over 20 years.
“Bonds
are also a good fit for an RRSP since income is taxed more heavily than capital
gains [outside a retirement plan],” he said.
are also a good fit for an RRSP since income is taxed more heavily than capital
gains [outside a retirement plan],” he said.
RRSP Picks
The best mutual funds for
growth
growth
TIM
SHUFELT - INVESTMENT REPORTER
SHUFELT - INVESTMENT REPORTER
The Globe and Mail
Published Sunday, Feb. 23
2014, 7:58 PM EST
2014, 7:58 PM EST
Last updated Monday, Feb.
24 2014, 7:08 AM EST
24 2014, 7:08 AM EST
Last
year was a stellar one for stocks, particularly U.S. stocks, and the mutual funds
invested in them.
year was a stellar one for stocks, particularly U.S. stocks, and the mutual funds
invested in them.
Now,
investors might need to look a little harder for top prospects.
investors might need to look a little harder for top prospects.
With
the RRSP deadline in mind, we asked investing professionals for their top
mutual fund picks for growth investing.
the RRSP deadline in mind, we asked investing professionals for their top
mutual fund picks for growth investing.
Greg
Newman
Newman
Senior
wealth adviser, The Newman Group, a ScotiaMcLeod affiliate
wealth adviser, The Newman Group, a ScotiaMcLeod affiliate
1. Dynamic Power American Growth Fund Based on the idea that gains are to be made
through concentrated holdings, this fund consists of a portfolio of 20 to 40
stocks. “As a pure bottom-up stock picker, [portfolio manager Noah] Blackstein
focuses on identifying companies that have the propensity to become
dramatically larger companies,” Mr. Newman said.
through concentrated holdings, this fund consists of a portfolio of 20 to 40
stocks. “As a pure bottom-up stock picker, [portfolio manager Noah] Blackstein
focuses on identifying companies that have the propensity to become
dramatically larger companies,” Mr. Newman said.
2. Trimark Europlus Evidently on the mend, Europe has
suddenly caught the attention of the world’s investors. This fund also runs a
concentrated portfolio, focusing on high-quality European stocks with
substantial growth potential.
suddenly caught the attention of the world’s investors. This fund also runs a
concentrated portfolio, focusing on high-quality European stocks with
substantial growth potential.
3. Trimark Global Small Companies “As economies around the world recover, the
growth prospects for small and mid-cap companies are quite positive,” Mr.
Newman said.
growth prospects for small and mid-cap companies are quite positive,” Mr.
Newman said.
This
fund aims to identify smaller companies with proven growth potential that may
have been overlooked by investors.
fund aims to identify smaller companies with proven growth potential that may
have been overlooked by investors.
=====
Dave
Paterson
Paterson
Fund
analyst, D.A. Paterson & Associates
analyst, D.A. Paterson & Associates
1. Fidelity Canadian Large Cap Fund This fund managed to dramatically outperform
the S&P/TSX over the last year by avoiding materials, limiting exposure to
energy and financial stocks and betting heavily on technology, consumer
defensive and health-care sectors, Mr. Paterson said.
the S&P/TSX over the last year by avoiding materials, limiting exposure to
energy and financial stocks and betting heavily on technology, consumer
defensive and health-care sectors, Mr. Paterson said.
“This
is a great core holding for most investors,” he said, although he expects more
modest returns this year.
is a great core holding for most investors,” he said, although he expects more
modest returns this year.
2. Black Creek Global Leaders Fund This fund has a “go anywhere mandate,”
scouring for high quality companies in markets across the world, Mr. Paterson
said.
scouring for high quality companies in markets across the world, Mr. Paterson
said.
“They
focus on companies that have the ability to grow by taking market share,
introducing new products or expanding into new markets.”
focus on companies that have the ability to grow by taking market share,
introducing new products or expanding into new markets.”
The
fund’s focus is long-term, and it makes no attempt to time the market, so
expect relatively high volatility.
fund’s focus is long-term, and it makes no attempt to time the market, so
expect relatively high volatility.
3. EdgePoint Global Portfolio Primarily focused on U.S. stocks,
this fund seeks to identify high-quality companies trading below fair value.
this fund seeks to identify high-quality companies trading below fair value.
“If
you have a longer-term time horizon and can stomach some short-term
underperformance in exchange for the probability of outperformance over the
longer term, then this is a great fund to consider,” Mr. Paterson said.
you have a longer-term time horizon and can stomach some short-term
underperformance in exchange for the probability of outperformance over the
longer term, then this is a great fund to consider,” Mr. Paterson said.
=====
Dan
Hallett
Hallett
Director
of asset management, HighView Financial Group
of asset management, HighView Financial Group
1. Mackenzie Cundill Recovery This fund, which tries to identify global
stocks due for a turnaround, has underperformed global stocks recently, mostly
due to investments in emerging markets and real estate.
stocks due for a turnaround, has underperformed global stocks recently, mostly
due to investments in emerging markets and real estate.
That
could change, however, considering the fund manager’s estimate that the
portfolio’s stocks “trade at a composite discount of almost 50 per cent of the
companies’ composite values,” Mr. Hallett said.
could change, however, considering the fund manager’s estimate that the
portfolio’s stocks “trade at a composite discount of almost 50 per cent of the
companies’ composite values,” Mr. Hallett said.
2. Trimark Canadian Fund Having weathered the market crash relatively
well compared to its benchmark and its competitors, this fund also staged a
strong recovery on the upswing.
well compared to its benchmark and its competitors, this fund also staged a
strong recovery on the upswing.
But
the fund still saw big outflows, and at half the size it was a decade ago,
“it’s one of the most under-appreciated funds that I can think of,” Mr. Hallett
said.
the fund still saw big outflows, and at half the size it was a decade ago,
“it’s one of the most under-appreciated funds that I can think of,” Mr. Hallett
said.
