Fundamental Index 2009 Performance Review
February 5th, 2010
By: Pro-Financial Asset Management
While many index-tracking ETFs performed well in 2009, Pro-Financial Asset Management’s Fundamental Index mutual funds outperformed them.
OAKVILLE, Feb. 5, 2010 / - Pro-Financial Asset Management’s lineup of FTSE RAFI® Fundamental Index mutual funds outperformed their ETF competitors in 2009 by between 4.16% to 11.38%.
The 2009 F-class unit performance for each of the mutual funds offered by Pro-Financial Asset Management is compared to the predominant market capitalization weighted ETF for each geographic area.
Canada
PRO FTSE RAFI Canadian Index Fund Class F +42.86%
iShares S&P/TSX Capped Composite Index ETF (XIC) +31.97%
Outperformance +10.89%
United States
PRO FTSE RAFI US Index Fund Class F +15.53%
iShares S&P 500 ETF (IVV) C$ +6.54%
Outperformance +8.99%
International Developed Markets excluding US
PRO FTSE RAFI Global Index Fund Class F +16.70%
iShares MSCI EAFE Index ETF (EFA) C$ +5.32%
Outperformance +11.38%
Emerging Markets
PRO FTSE RAFI Emerging Markets Index Fund Class F +48.38%
iShares MSCI Emerging Markets Index ETF (EEM) C$ +42.04%
Outperformance +6.34%
Hong Kong China
PRO FTSE RAFI Hong Kong China Index Fund Class F +33.22%
iShares MSCI Hong Kong Index ETF (EWH) C$ +29.06%
Outperformance +4.16%
"Pro-Financial has been a leader in the distribution of Fundamental Index mutual funds in Canada for nearly three years." says Stuart McKinnon, President and CEO of Pro-Financial Asset Management. “A Fundamental Index has traditionally outperformed when stock prices revert towards fairer values after periods of irrationality. I think it’s fair to say there was some irrational pricing of stocks in 2008 and 2009. While no one knows what the absolute fair prices are, we are probably closer to fair values now than since the depths of the credit crisis.”
Preet Banerjee, Senior Vice President adds, “We feel that the specific type of index we track, the Fundamental Index, is more investor friendly than capitaliation weighted indices. The Fundamental Index avoids the return drag of a cap-weighted index which will assign the most weight to the highest priced stocks – best exemplified by what is commonly referred to as the ‘Nortel Effect’ in the Canadian indexing world. The Fundamental Index methodology selects and weight securities based on four fundamental factors of company size: Sales, Dividends, Cash Flow and Book Value. Unlike a cap-weighted index, you won’t find companies dominating a Fundamental Index based on hype and pure speculation.”
For more information, please visit www.pro-financial.ca.
About Pro-Financial Asset Management
Pro-Financial Asset Management was founded in 2002. Located on the grounds of the Glen Abbey Golf Course, Pro-Financial was established first as an industry leader in providing Canadians access to alternative investment strategies and solutions before successfully expanding its investment line up to include the revolutionary FTSE RAFI Fundamental Index mutual funds.
About FTSE Group
FTSE Group (“FTSE”) is a world-leader in the creation and management of indexes. With offices in Boston, Beijing, London, Frankfurt, Hong Kong, Madrid, New York, Paris, San Francisco, Sydney, Shanghai and Tokyo, FTSE works with investors in 77 countries globally. It calculates and manages a comprehensive range of equity, fixed income, real estate and investment strategy indices, on both a standard and custom basis. The company has collaborative arrangements with a number of stock exchanges, trade bodies and asset class specialists around the world.
FTSE indexes are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds.
The FTSE RAFI Index Series is calculated by FTSE International Limited ("FTSE") in conjunction with Research Affiliates LLC ("RA"). Neither FTSE nor RA sponsor, endorse or promote this product and are not in any way connected to it, and do not accept any liability in relation to its issue, operation and trading. All intellectual property rights in the index values and constituent list vest in FTSE.
Fundamental Index and RAFI trade names and patent concept are the exclusive property of Research Affiliates, LLC. Fundamental Index and RAFI trade names, patented and patent-pending concepts are the exclusive property of Research Affiliates, LLC. US Patent Number 7,620,577. Patent pending: US-20050171884-A1, US-2006-0149645-A1, US-2007-0055598-A1.
Pro-Financial Asset Management has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.
For further information: Preet Banerjee, Senior Vice President
Tel: (647) 224-0623
preetb@pro-financial.ca
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Any indicated rates of return are historical annual compounded total returns, including changes in share or unit values and reinvestment of all dividends or distributions, and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government insurer. Mutual funds are not guaranteed and their values may change frequently. Past performance may not be repeated.
