Top 50 tax-efficient mutual funds in Canada

(April 8, 2003) "Taxes exceed management fees and brokerage commissions in their ability to erode long-term investment returns," write Amin Mawani and Moshe Milevsky, both professors at the Schulich School of Business at York University in Toronto, and Kamphol Panyagometh, a post-doctoral researcher working with Mawani and Milevsky. Their work, “The Impact of Personal Income Taxes on Returns and Rankings of Canadian Equity Mutual Funds,” analyzes the returns of 343 equity and balanced mutual funds over 10 years, from 1992 to 2001. Here are the top 50 tax-efficient mutual funds according to this research study:

Fund Name	Pre-Tax Return Ranking	Pre-liquidation After-Tax Return Ranking	Post-liquidation After-Tax Return Ranking
Multiple Opportunities Fund	1	16	4
ABC Fundamental-Value Fund	2	6	6
Formula Growth Fund	3	1	1
AIC Advantage Fund	4	2	2
Maestral Quebec Growth Inc.	5	3	3
Signature American Small Companies	6	11	9
Quadrus Dividend Fund (MX)	7	7	8
Trimark Fund – SC	8	17	13
MAXXUM Dividend Fund	9	8	10
Forester Growth Funds – Equity	10	4	5
Investors U.S. Large Cap Value Fund	11	5	7
AGF International Value Fund	12	25	22
Chou Associates Fund	13	23	19
Northwest Specialty Equity Fund	14	10	11
Saxon Stock Fund	15	18	17
Dominion Equity Resource Fund Inc.	16	19	15
GBC Canadian Growth Fund	17	9	12
Altamira Select American Fund	18	13	14
Dynamic Power Canadian Growth Fund	19	21	21
Trimark Select Growth Fund	20	22	24
Spectrum American Growth Fund C$	21	36	25
AIC Value Fund	22	12	16
McLean Budden American Equity Fund	23	32	28
ABC Fully-Managed Fund	24	77	47
Mawer New Canada Fund	25	59	41
BPI American Equity Fund	26	93	63
Saxon Small Cap	27	44	35
GBC North American Growth Fund Inc.	28	14	18
Trans Agent Plan	29	15	20
MAXXUM Dividend Growth Fund	30	35	33
Bissett Canadian Equity Fund Class F	31	20	23
AGF American Growth Class	32	24	26
Chou RRSP Fund	33	40	36
National Bank Small Capitalization Fund	34	33	30
Ethical North American Equity Fund	35	47	39
Royal Energy Fund	36	26	27
Fidelity Growth America Fund Series A	37	67	53
Mac Cundill Value Fund Series A	38	62	45
Renaissance Global Value Fund	39	51	51
Mac Unv Canadian Resource Fund	40	29	32
MD Growth Investment Limited	41	39	38
Saxon World Growth	42	104	67
Mac Unv Future Fund	43	28	31
Mac Cundill Canadian Security Fund Series A	44	58	54
Empire Equity Growth Fund	45	27	29
Tradex Equity Fund Limited	46	68	48
Batterymarch U.S. Equity Fund	47	30	34
GGOF Centurion American Value Ltd. Classic	48	81	62
Saxon Balanced Fund	49	50	50
GGOF Guardian Enterprise Classic	50	45	46

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For an executive summary of the report, click here.

• • •

To read the whole study, please click here.

Do you have any comments or questions about the results of this study? Special guest moderator Moshe Milevsky will be in the "Tax Time Tactics" forum of the Talvest Town Hall to answer your questions later this week. Post your message to your peers or to Milevsky himself in the “Tax Time Tactics” forum of the Talvest Town Hall on Advisor.ca.

(04/08/03)

Scot Blythe

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