Pro-Financial Asset Management's Fundamental Index Funds Outperform Four out of Five Index Benchmarks in 2008, Increase in Asset Base of 25% Year over Year.
Pro-Financial Asset Management (Pro-Financial) is pleased to report that their lineup of low cost index mutual funds that track the FTSE RAFI Fundamental Indices outperformed their benchmark marketcapitalization weighted indices in four out of five markets in 2008 on an AFTERFEE basis for the F class units of the funds.
The index mutual funds, which are among the first in Canada to offer financial advisors traditional compensation options for passive investment strategies and competes directly with Exchange Traded Funds, had net positive sales for 2008 a rarity for mutual funds and a testament to the rising popularity of the innovative indexing methodology. The five funds are the PRO FTSE RAFI Canadian Index Fund; the PRO FTSE RAFI US Index Fund; PRO FTSE RAFI Global Index Fund; PRO FTSE RAFI Emerging Markets Fund and the PRO FTSE RAFI Hong Kong China Index Fund.
Outperformance of the F Class units (NET of fees) versus their Benchmark Indices:
Canada 1.90% Over S&P/TSX Composite Index
Global 0.30% Over MSCI EAFE & Canada Index
Emerging Markets 3.63% Over MSCI Emerging Markets Index
Hong Kong China 2.61% Over MSCI Hong Kong Index
Preet Banerjee, Senior Vice President of Pro-Financial Asset Management comments, The Fundamental Index methodology avoids one major flaw of market capitalization indices: it doesn't systematically overweight overvalued stocks and under weight under valued stocks whereas a market capitalization index will do precisely that. It's a very simple concept, but very powerful. For example, when Nortel was almost one third of the cap weightindex in 2001, it was less than 10% in the fundamental index. It avoids getting caught up in the mania that many investors dislike about cap weight index tracking ETFs
Stuart McKinnon, CEO and President further adds, Passive investment strategies are gaining popularity with investors. Until now, ETFs had been the only real choice for financial advisors who wished to harness the power ofindexation, but less than one third of all financial advisors in Canada are licensed to trade ETFs. Our lineup of Fundamental Index Mutual Funds allows almost all advisors in Canada to harness the power of low cost indexation strategies. Our total asset growth for 2008 has been +25% compared to the 25% for the mutual fund industry as a whole in Canada* watch this Space"
About Pro-Financial Asset ManagementPro-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 GroupFTSE 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 fund
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-A
Pro-Financial Asset Management has obtained full licence from FTSE to use such intellectual property rights in the creation of this product.
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.
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