Canada’s top 3 mutual funds of the decade

These gold-rated actively managed approaches took top spots for long term performance

Andrew Willis 20 December, 2019 | 1:20AM
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Andrew Willis: When it comes to long term alpha – or outperformance – many investors prefer active management. So as we head into 2020, let’s look at the top performers of the past decade. These funds picked the most positive tailwinds out of the 2008 financial crisis.

First up, we have a fund that seized impressive small-cap opportunities while maintaining a below-average Morningstar risk rating.

Manulife Global Small Cap Fund has delivered a total annualized 10-year return of 16.16% through a significantly overweight international equity allocation. Portfolio manager Paul Moroz has been at the helm since 2008, earning the fund a high people pillar alongside a high process pillar.

The next fund has found a sweet spot for sustained performance.

Not too hot, not too cold, TD’s US Mid-Cap Growth Fund is average-risk but has delivered a well-above-average 10-year return of 17.38%. Portfolio managers Brian Berghuis and John Wakeman have been behind this performance since 1994, earning this fund a high people pillar rating andattracting a whopping $2.1 billion in assets under management.

Lastly, proving that high risk can come with high rewards, we have a sector fund.

Having rocketed above its benchmark index over the past ten years, TD’s Global Entertainment and Communications Fund has beat its category returns by more than 9% over 3, five and 10-year periods. The fund takes a decisively larger, ‘growthier’ investment approach than its peers, proving successful with a ten-year return of 18.66%.

These mutual funds cost more than a passive ETF investment option. However, they also prove that despite higher costs, some mutual funds pull far more than their weight.

For Morningstar, I’m Andrew Willis

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Manulife Global Small Cap F21.05 CAD-1.06Rating
TD Glbl Entertainment & Comm - F107.06 CAD-0.85Rating
TD US Mid-Cap Growth - F61.43 CAD-1.15Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar Canada. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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