Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

What are we looking for?

Global stock markets gyrated last week on concerns about the implications of Standard & Poor's downgrade of U.S. debt and continued euro-zone debt problems. Given the increased market volatility this year, let's see which Canadian stock funds have managed to stay in positive territory.

The screen

Story continues below advertisement

We looked for the 15 top performers among Canadian stock funds this year to Aug. 15. We included Canadian equity, Canadian dividend and income and also Canadian focused equity funds, which can invest up to nearly 50 per cent in foreign stocks. U.S. dollar, segregated and duplicate versions of the funds were excluded.

What did we find?

Canadian stock funds that invested in preferred shares were sitting pretty, while the S&P/TSX Total Return Index was off 12 per cent.

Within this niche, Omega Preferred Equity emerged at the top of the heap with a 2.9 per cent gain followed by Manulife Preferred Income, up 2.7 per cent and Claymore S&P/TSX Preferred Share exchange-traded fund, up 2.3 per cent.

Preferred shares, unlike their common-share cousins, have the characteristics of both a stock and bond. Investors make money from preferred shares mainly through dividends, and have a greater claim on a company's assets and earnings in the event of bankruptcy. But preferred shares are also like fixed-income investments because they are sensitive to swings in interest rates.

Omega Preferred Equity is run by the asset management arm of insurer Intact Financial Corp., formerly ING Insurance Co. of Canada. Intact, which has run a portfolio of preferred shares since the late 1980s, was tapped to run this mutual fund for National Bank of Canada in 2007.

Among common share funds, Value Contrarian Canadian Equity and Standard Life Diversified Income outpaced peers, respectively, gaining 0.41 per cent and 0.17 per cent.

Story continues below advertisement

Value Contrarian Canadian Equity got some help during the recent downturn by having just over 20 per cent in cash built up from the sale of "fully valued positions," and having a lack of exposure to battered commodity stocks except for a few oil names, said Benjamin Horwood, president of Value Contrarian Asset Management. Winners in his fund this year have included Paladin Labs Inc. and, until recently, Exxon Mobil Corp.

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies