Best Canadian Mutual Funds for 2013 Rated By Morning Star Inc

 The mutual funds in Canada have a history that dates back to 60 years before. It is believed that the business of mutual fund was invented by the Dutch merchants since around 1774. The growing popularity of mutual funds has resulted increase both in numbers and types of mutual funds in Canada. There are over 100 mutual funds companies in Canada and many more money managers and investment firms managing thousands of independent similar or mutual fund type works. It is an industry that is worth over 750 billion Canadian dollars.

The following are the different classes of mutual funds available in Canada.

1.     Fixed income mutual funds consisting fixed income securities like government bonds and corporate bonds

  1. Money Market Mutual Funds consisting short-term fixed income money market securities like treasury bills
  2. Growth/Equity Mutual Funds
  3. Balanced Funds comprising combination of equities and fixed income securities
  4. Global Foreign Equities or Dividend Mutual Funds consisting securities with fixed income
  5. Specialty fund in a specific sector (for example, information technology, mining, etc) or region (for example, Europe, Asia, etc)
  6. Funds of funds that invest in other good performing mutual funds.
  7. Index funds that follow a specific index, such as the S&P/TSX Composite Index

Morningstar, Inc., headquartered in Chicago, is an investment research firm founded in 1982. They offer awards based on sound quantitative methodologies that are designed to help investors to identify the most outstanding mutual funds across Asia, Africa, Europe and North America. Their assessments emphasize on the performance of the mutual funds over short term (1 month, 2 months, etc) and long term such as 1 year to 10 years activities. The funds with maximum long term returns (10 years/ 5 years) have been awarded with the higher ranks.

Morning Star Inc Award 2012 to Top 10 Canadian Mutual Funds

Name of the Mutual Fund Awards Total AssetsIn (CAD) NAVAs on May 17, 2013 (In CAD)
Phillips Hager & North Absolute Ret Sr A  Best Bond Fund Group (Multi-strategy) $805.8 million $12.87
Mawer New Canada, Mawer Investment Management Ltd. (1) Best Canadian Small/Mid-Cap Equity Fund, (2) Best International Equity Fund 

(3) Best Global Small/Mid-Cap Equity Fund

(4) Best Canadian Equity Fund



$919.8 million $ 53.28
RBC Global High Yield Bond, RBC Global Asset Management Inc (1) Best High Yield Fixed-Income Fund(2) Best Global Fixed-Income Fund  $1.48 billion  $10.91
Sentry Canadian Income, Sentry Investments Best Canadian Dividend & Income Equity Fund $3.3 billion $17.74
Mackenzie Universal Emerging Markets, Mackenzie Investments Best Emerging Markets Equity Fund $403.5 million $27.50
CI Signature High Income, CI Investments Inc Best Global Balanced Fund $8.6 billion $ 14.77
Trimark Us Small Companies, Invesco Canada Ltd Best US Small/Mid-Cap Equity Fund $85.7 million $22.68
Td Health Sciences, Td Mutual Funds Best Specialty Equity Fund $286.0 million $29.05
Steadyhand Income, Steadyhand Investment Fund Best Canadian Balanced Fund (Fixed Income fund)

$82.8 million

Capital International Global Equity, Capital International Asset Management Best Global Equity Fund  $1.8 billion $18.35


Growth of 10,000  in (Canadian Dollars)
1 Yr 3 Yr  5 Yr 10 Yr
11185 13984 23294 39977
10421 15809 15881 39,141
11196 13394 15361 Not Available;Fund Inception 17 July 2003
11271 15007 14780 36105
11841 11452 9400 26877
11475 14031 14045 25715




13774 18480 19227 22660
10921 12863 14763 Not Available;Fund Inception 13 February 2007
13071 14856 12058 19955

 The yardsticks used by Morning star while assessing the performance of the mutual funds include:

  • Risk- returns profile (with reference to a peer group or benchmark)
  • Actual performances and as per plan
  • Consistency in style
  • Price
  • Constrains

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