Real estate equity funds on top when looking at 15-year returns

Mark Raes, vice-president and head of product for BMO Exchange Traded Funds, cautions that investors need to look at mutual fund performance on a year-by-year basis.

The past decade and a half appear to have been quite unkind to many Canadian equity fund investors, as well as worse to people invested elsewhere. Actually, performance figures for that 15-year period through December 2015 show fixed-income funds fared nearly as well and in some cases better than their stock-driven kin.

Overall, Canadian equity funds averaged a substance annual yield of five percent through 2015, as the Canadian equity category itself averaged 4.3 percent; Canadian fixed-income funds overall averaged 3.8 per cent as the category itself averaged 4.1 per cent. Those all compare well to the returns from U.S. (1.8 percent), European (two percent), global (2.3 per cent) and international (0.8 per cent) equity funds. Only 13 funds in neuro-scientific a lot more than 1,100 with 15-year histories managed double-digit average annual returns.

Granted, there is an component of bias in those equity figures – the S&P/TSX Composite Index, for instance, continues to be bouncing round the 12-13,000 range within the last couple of months, rich its August 2014 peak of 15,625. With both ends of the yardstick moving, the yield relationship can change quickly and Mark Raes, head of product at BMO Global Asset Management in Toronto, cautions against drawing conclusions from such long time frames.


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