News and resources for Canada's top financial advisors
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
For instance, under the new rules funds the Asia ex-Japan category must have 90% equities and must have 85% in the region identified, versus the previous test which only required that funds have 50% of their total assets and 70% of their non-cash assets in that region.
Under the CIFSC, funds are classified based on their investment mandates and three-year median holdings data. About 300 funds will be impacted by the change takes effect at the end of the quarter. Fund companies will be given advance warning if a fund is moving categories.
Although the loss of Morningstar was a bit of a blow to the CIFSC, the organization is not about to wither away. The Canadian Life and Health Insurance Association recently joined the committee and Lipper, a global provider of mutual fund information, analytical tools, and commentary, has also agreed to come on board.
The committee is still looking to broaden its categories further. “We would like to get a little more input from the individual investor, but we don’t know how to do that exactly,” Hensel says.
CIFSC’s new categories
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
 |
Just a few months after Morningstar Canada left the Canadian Investment Funds Standards Committee, citing concerns about the body’s slow pace to change, the committee has completely revamped its fund categories.
Starting July 3, investors and advisors will have access to 38 revamped categories, up from 34. Aside from redefining existing categories, CIFSC is also introducing four new fund classifications.
In one instance, two new categories were created from the broad Canadian Balanced fund category, which includes about 800 funds, to form the Canadian Balanced Equity Focus, Canadian Balance Fixed Income Focus groups. Another new category includes Canadian Focus Equity to compare funds that still have more 50%, but have less than 70% of their funds invested in Canada with the balance invested elsewhere in the world.
Out of the Global Balanced category a new category has been added called Global Equity Balanced. A global fixed income category was considered but the CIFSC determined there were not enough funds in this group to warrant its own category at this time.
In some ways the changes being introduced by CIFSC were similar to those proposed by Morningstar Canada, which recently updated its fund categories. It’s not a coincidence. “We thought there was some merit to what they were saying and some of the things we actually said these are good ideas that we can implement,” says Ralf Hensel, chair of the CIFSC. The problem was that many of the Morningstar’s suggestions relied on proprietary systems which conflict with the CIFSC’s mandate to use a transparent methodology to create its fund categories.
Morningstar is currently shopping around 46 new categories of its own design, not including 15 proposed hedge fund groupings, and hopes to finalize them sometime later this year.
Most of Morningstar’s new categories are the result of breaking up some of the current CIFSC categories like the Canadian Balanced fund group into more specific elements.
From the CIFSC’s perspective, the value-added work that Morningstar does to analyze funds should come secondary, says Hensel, similar to what companies like Globefund and Cannex do.
Several of the tests used to determine what category each fund should belong to have also been updated to provide greater clarity. “We’ve gone for a greater purity in the sector and the region,” says Hensel.
For instance, under the new rules funds the Asia ex-Japan category must have 90% equities and must have 85% in the region identified, versus the previous test which only required that funds have 50% of their total assets and 70% of their non-cash assets in that region.
Under the CIFSC, funds are classified based on their investment mandates and three-year median holdings data. About 300 funds will be impacted by the change takes effect at the end of the quarter. Fund companies will be given advance warning if a fund is moving categories.
Although the loss of Morningstar was a bit of a blow to the CIFSC, the organization is not about to wither away. The Canadian Life and Health Insurance Association recently joined the committee and Lipper, a global provider of mutual fund information, analytical tools, and commentary, has also agreed to come on board.
The committee is still looking to broaden its categories further. “We would like to get a little more input from the individual investor, but we don’t know how to do that exactly,” Hensel says.
CIFSC’s new categories
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
|
Just a few months after Morningstar Canada left the Canadian Investment Funds Standards Committee, citing concerns about the body’s slow pace to change, the committee has completely revamped its fund categories.
Starting July 3, investors and advisors will have access to 38 revamped categories, up from 34. Aside from redefining existing categories, CIFSC is also introducing four new fund classifications.
In one instance, two new categories were created from the broad Canadian Balanced fund category, which includes about 800 funds, to form the Canadian Balanced Equity Focus, Canadian Balance Fixed Income Focus groups. Another new category includes Canadian Focus Equity to compare funds that still have more 50%, but have less than 70% of their funds invested in Canada with the balance invested elsewhere in the world.
Out of the Global Balanced category a new category has been added called Global Equity Balanced. A global fixed income category was considered but the CIFSC determined there were not enough funds in this group to warrant its own category at this time.
In some ways the changes being introduced by CIFSC were similar to those proposed by Morningstar Canada, which recently updated its fund categories. It’s not a coincidence. “We thought there was some merit to what they were saying and some of the things we actually said these are good ideas that we can implement,” says Ralf Hensel, chair of the CIFSC. The problem was that many of the Morningstar’s suggestions relied on proprietary systems which conflict with the CIFSC’s mandate to use a transparent methodology to create its fund categories.
Morningstar is currently shopping around 46 new categories of its own design, not including 15 proposed hedge fund groupings, and hopes to finalize them sometime later this year.
Most of Morningstar’s new categories are the result of breaking up some of the current CIFSC categories like the Canadian Balanced fund group into more specific elements.
From the CIFSC’s perspective, the value-added work that Morningstar does to analyze funds should come secondary, says Hensel, similar to what companies like Globefund and Cannex do.
Several of the tests used to determine what category each fund should belong to have also been updated to provide greater clarity. “We’ve gone for a greater purity in the sector and the region,” says Hensel.
For instance, under the new rules funds the Asia ex-Japan category must have 90% equities and must have 85% in the region identified, versus the previous test which only required that funds have 50% of their total assets and 70% of their non-cash assets in that region.
Under the CIFSC, funds are classified based on their investment mandates and three-year median holdings data. About 300 funds will be impacted by the change takes effect at the end of the quarter. Fund companies will be given advance warning if a fund is moving categories.
Although the loss of Morningstar was a bit of a blow to the CIFSC, the organization is not about to wither away. The Canadian Life and Health Insurance Association recently joined the committee and Lipper, a global provider of mutual fund information, analytical tools, and commentary, has also agreed to come on board.
The committee is still looking to broaden its categories further. “We would like to get a little more input from the individual investor, but we don’t know how to do that exactly,” Hensel says.
CIFSC’s new categories
Filed by Mark Brown, Advisor.ca, mark.brown@advisor.rogers.com
(06/05/06)
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