As some investors worry that stocks in the U.S. and various asset classes in Canada run the risk of overheating, they’re looking to diversity geographically. For those faced with picking among unfamiliar names and unknown economic terrain, you could start your research with these actively managed solutions.
These mutual funds are all in the category of Canada Global Equity and are all Morningstar gold medalists. Here’s the list of five funds who've been at the top of their game:
|
Name |
MQR |
5-yr Returns |
3-yr Returns |
|
Gold |
24.87% |
18.64% |
|
|
Gold |
12.96% |
7.91% |
|
|
Gold |
14.68% |
13.63% |
|
|
Gold |
18.17% |
18.43% |
|
|
Gold |
15.67% |
15.98% |
Source: Morningstar Direct, as of May 18, 2021
First off, it’s impressive but certainly not surprising to see Noah Blackstein heading up the ‘growthiest’ global fund of the pack. Blackstein has been a five-star performer for a few years now, with his global mandate Dynamic Power Global Growth Class Series F posting the strongest five-year returns of the group. It also charges the highest fees, with a Management Expense Ratio (MER) for the F series fund of 3.81% (which includes a performance fee of 2.49% for Blackstein). In return, however, investors did gain 92.13% in 2020.
The fund has a growth focus that’s well beyond the global equity category with an allocation to technology stocks at over 50% as of February 28th, 2021. The fund has been swept up in the inflation/tech sell-off since the start of the year but has fared better than its North American counterpart.
The fund that’s fared the best since the start of the year is Edgepoint Global Portfolio Series F, with a lower turnover, lower fee (0.98% MER) approach that also leans more towards value. Half of the fund’s holdings are in consumer cyclicals and industrials as of January 31, 2021, with a similar weighting each. Edgepoint’s global mandate is a three-star fund, and while handily outperforming the global equity category until the pandemic, it dove alongside it in the depths of March. Since the beginning of this year, however, the fund seems to have taken off once again.
For investors seeking something that’s a little more international, CI Black Creek Global Leaders Class F is worth considering. Its international equity allocation is over 66% as of April 30, 2021, with around 27% in U.S. equities and only 5% in Canada. Performance-wise, the fund’s largely followed the index for the past decade and has a turnover rate that’s a small fraction of Dynamic’s global growth mandate. Investors get an approach that’s a little more middle of the road, along with average fees of around 1.36% (2.06% for Series D).
For a global equity growth approach that also leans ESG, the five-star RBC Vision Global Equity Fund F is another lower turnover strategy worth considering, with a lower fee at 0.99% (1.25% for Series D). It’s the second-‘growthiest’ of the pack, but with around only 17% in the technology sector as of April 30, 2021. Financial services stocks make up the largest holding at around 21% and the fund is close to the category for other sector weightings.
Lastly, a top global mandate from Dynamic without the performance fees (its MER is 1.19% for Series F), Dynamic Blue Chip Equity Fund has consistently outperformed the benchmark while maintaining a similar stock style to the index. A large-cap approach that leans toward growth, its international equity allocation is well beyond most peers at more than 71%. It’s also worth noting that the fund scores high on momentum and quality while sporting a low-to-medium risk rating.
As a special mention but not included in the table as it hadn’t yet completed a 5-year history is Dynamic Global Equity Income F. For our investors keen on yield, this one has a trailing twelve-month yield of 4.17% while maintaining a large-cap stock style that’s close to the global equity category, with a blend of value and growth. Interestingly, as of February 28, 2021, healthcare was the largest sector represented in the portfolio.
