(April 8, 2003) "Taxes exceed management fees and brokerage commissions in their ability to erode long-term investment returns," write Amin Mawani and Moshe Milevsky, both professors at the Schulich School of Business at York University in Toronto, and Kamphol Panyagometh, a post-doctoral researcher working with Mawani and Milevsky. Their work, “The Impact of Personal Income Taxes on Returns and Rankings of Canadian Equity Mutual Funds,” analyzes the returns of 343 equity and balanced mutual funds over 10 years, from 1992 to 2001. Here are the top 50 tax-efficient mutual funds according to this research study:
| Fund Name |
Pre-Tax
Return Ranking |
Pre-liquidation
After-Tax Return Ranking |
Post-liquidation
After-Tax Return Ranking |
| Multiple Opportunities Fund |
1
|
16
|
4
|
| ABC Fundamental-Value Fund |
2
|
6
|
6
|
| Formula Growth Fund |
3
|
1
|
1
|
| AIC Advantage Fund |
4
|
2
|
2
|
| Maestral Quebec Growth Inc. |
5
|
3
|
3
|
| Signature American Small Companies |
6
|
11
|
9
|
| Quadrus Dividend Fund (MX) |
7
|
7
|
8
|
| Trimark Fund – SC |
8
|
17
|
13
|
| MAXXUM Dividend Fund |
9
|
8
|
10
|
| Forester Growth Funds – Equity |
10
|
4
|
5
|
| Investors U.S. Large Cap Value Fund |
11
|
5
|
7
|
| AGF International Value Fund |
12
|
25
|
22
|
| Chou Associates Fund |
13
|
23
|
19
|
| Northwest Specialty Equity Fund |
14
|
10
|
11
|
| Saxon Stock Fund |
15
|
18
|
17
|
| Dominion Equity Resource Fund Inc. |
16
|
19
|
15
|
| GBC Canadian Growth Fund |
17
|
9
|
12
|
| Altamira Select American Fund |
18
|
13
|
14
|
| Dynamic Power Canadian Growth Fund |
19
|
21
|
21
|
| Trimark Select Growth Fund |
20
|
22
|
24
|
| Spectrum American Growth Fund C$ |
21
|
36
|
25
|
| AIC Value Fund |
22
|
12
|
16
|
| McLean Budden American Equity Fund |
23
|
32
|
28
|
| ABC Fully-Managed Fund |
24
|
77
|
47
|
| Mawer New Canada Fund |
25
|
59
|
41
|
| BPI American Equity Fund |
26
|
93
|
63
|
| Saxon Small Cap |
27
|
44
|
35
|
| GBC North American Growth Fund Inc. |
28
|
14
|
18
|
| Trans Agent Plan |
29
|
15
|
20
|
| MAXXUM Dividend Growth Fund |
30
|
35
|
33
|
| Bissett Canadian Equity Fund Class F |
31
|
20
|
23
|
| AGF American Growth Class |
32
|
24
|
26
|
| Chou RRSP Fund |
33
|
40
|
36
|
| National Bank Small Capitalization Fund |
34
|
33
|
30
|
| Ethical North American Equity Fund |
35
|
47
|
39
|
| Royal Energy Fund |
36
|
26
|
27
|
| Fidelity Growth America Fund Series A |
37
|
67
|
53
|
| Mac Cundill Value Fund Series A |
38
|
62
|
45
|
| Renaissance Global Value Fund |
39
|
51
|
51
|
| Mac Unv Canadian Resource Fund |
40
|
29
|
32
|
| MD Growth Investment Limited |
41
|
39
|
38
|
| Saxon World Growth |
42
|
104
|
67
|
| Mac Unv Future Fund |
43
|
28
|
31
|
| Mac Cundill Canadian Security Fund Series A |
44
|
58
|
54
|
| Empire Equity Growth Fund |
45
|
27
|
29
|
| Tradex Equity Fund Limited |
46
|
68
|
48
|
| Batterymarch U.S. Equity Fund |
47
|
30
|
34
|
| GGOF Centurion American Value Ltd. Classic |
48
|
81
|
62
|
| Saxon Balanced Fund |
49
|
50
|
50
|
| GGOF Guardian Enterprise Classic |
50
|
45
|
46
|
• • •
For an executive summary of the report, click here.
• • •
To read the whole study, please click here.
Do you have any comments or questions about the results of this study? Special guest moderator Moshe Milevsky will be in the "Tax Time Tactics" forum of the Talvest Town Hall to answer your questions later this week. Post your message to your peers or to Milevsky himself in the “Tax Time Tactics” forum of the Talvest Town Hall on Advisor.ca.
|
|
|
(04/08/03)