Performance since 2010 has been very strong, outpacing most of its peer group. So far this year, it has lagged, largely because of underperformance from some of its key financial names, and zero exposure to Encana, Suncor and Canadian Natural Resources. For the three years ending August 31, it has generated an annualized return of 12.07% per year. As with many of the funds I like, the volatility has been well below both the index and its peer group. Capital protection is also quite strong, with a stellar down capture ratio across all time periods.
Looking forward, I expect that this fund will continue to deliver. Many of the holdings continue to show nice gains based on the growing profitability of their underlying businesses. Further, the manager believes that in most cases, these companies are trading below what would be defined as their intrinsic value, providing strong upside potential.
Fund Company: Franklin Templeton Investments
Style: Growth at a Reasonable Price
Minimum Investment: $500
RRSP/RRIF Suitability: Excellent
Interactive Performance Chart