Navigating the Complex World of Mutual Funds

Strategic Insights -

With thousands of Canadian mutual funds to choose from, even the most sophisticated investors can struggle to separate the wizards from the wannabes. The lack of unbiased information and timely data has left many investors in the dark, with Frank Mersch, vice-president of equities at Altamira Investment Services Inc., highlighting the need for better information and correct information. However, for active investors who are adept with computers, a number of data products are now available or coming soon, providing a level of detail that can be difficult to find in newspaper listings.

Key Takeaways:

  • **HySales for Windows**: A detailed analytical tool that enables fund distributors to select and compare mutual funds according to a wide range of criteria, available for a subscription of $500 plus tax.
  • **Southam Mutual Fund SourceDisk**: A product that has been around for a decade, covering over 900 mutual funds, with information on financial ratios, investment objectives, and portfolio managers, available for a one-year subscription of $350 plus GST.
  • **Financial Times Bell Charts**: A product that lets investors compare, sort, and rank funds by performance, size, expense ratios, or sales fees, available for a single monthly disk of $39.05 or a one-year subscription of $413.95.
  • **Portfolio Analytics Ltd.**: Offers two products, FundTrak and PALTrakPro, with FundTrak geared towards retail investors and PALTrakPro for sophisticated investors, with prices ranging from $27.95 to $289.95.
  • **Morningstar Inc.**: A top-ranked U.S. fund monitoring company planning to launch products in Canada, although no official announcement has been made.

Statistics:

  • Over 1,000 Canadian mutual funds are available to investors.
  • The cost of HySales for Windows is $500 plus tax.
  • Southam Mutual Fund SourceDisk's one-year subscription cost is $350 plus GST.
  • Financial Times Bell Charts costs $39.05 per month or $413.95 per year for a single subscription.
  • Portfolio Analytics Ltd. charges between $27.95 and $289.95 for its products.
  • Morningstar Inc. plans to launch products in Canada without specifying a timeline.

Sources:

  • Globe Information Services
  • Southam Business Communications Inc.
  • BellCharts Inc.
  • Portfolio Analytics Ltd.
  • Morningstar Inc.