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Mutual funds

Mutual Fund Companies Expand International Reach

Strategic Insights

— 1 min read

Canada's mutual fund companies are expanding their international offerings, with several recent launches in the Asia and European markets. The industry is encouraging Canadians to explore these markets for growth and diversification opportunities. Canada Trust Co. has added two new funds to its Everest no-load family, the AsiaGrowth Fund and EuroGrowth Fund, which will track major stock indexes in Asian and European markets.

Key Takeaways:

  • Canada Trust Co. launched the AsiaGrowth Fund and EuroGrowth Fund, adding to its Everest no-load family.
  • The AsiaGrowth Fund will initially track Japanese and Hong Kong stock indexes, with plans to expand into other Asian markets as futures markets develop.
  • The EuroGrowth Fund will focus on London, Paris, Frankfurt, Switzerland, and Amsterdam.
  • The funds use derivatives, such as futures contracts on foreign stock indexes, to achieve foreign exposure.
  • The funds retain RRSP eligibility due to the investment of most assets in Canadian government treasury bills.
  • The AsiaGrowth and EuroGrowth Funds are similar in design to Canada Trust's Everest AmeriGrowth Fund, introduced in February.
  • The AmeriGrowth fund follows the daily movement of U.S. stocks by buying futures contracts on the Standard & Poor's 500 index.
  • 20/20 Group Financial Inc. launched the RSP Aggressive Equity Fund, designed for investors seeking capital appreciation.
  • The RSP Aggressive Equity Fund invests in small and medium-sized Canadian companies, with a maximum 20-per-cent foreign content limit.
  • Another 20/20 new entry is the RSP International Equity Allocation Fund, managed by Wells Fargo Nikko, investing in major world markets using derivatives.

Statistics:

  • $75 million: the size of the Everest AmeriGrowth Fund.
  • 20-per-cent: the maximum foreign content limit for the RSP Aggressive Equity Fund.
  • 3: the number of funds launched by 20/20 Group Financial Inc. in the past year.
  • 2: the number of new funds added to the Everest no-load family by Canada Trust Co.

Sources:

  • "Mutual fund companies expand reach" by Dennis Slocum, The Globe and Mail.
  • Canada Trust Co.
  • Newcastle Capital Management Inc.
  • 20/20 Group Financial Inc.
  • Driehaus Capital Management Inc.
  • Wells Fargo Nikko.

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