/R E P E A T -- Fundamental Index Mutual Funds Fire Warning Shot to ETFs/



    
    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
    

    OAKVILLE, ON, Jan. 30 /CNW/ - 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 market-capitalization weighted indices in four out of five markets
in 2008 on an AFTER-FEE 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 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
over-valued 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-weight index 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 of
indexation, 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."

    
    (*) refers to long term fund assets as defined by the Investment Funds
        Institute of Canada (IFIC)
    

    About Pro-Financial Asset Management

    Pro-Financial Asset Management was founded in 2002 in response to the
rapidly changing needs of Canadian investors and the industry professionals
who service them. 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 traditional equity
based offerings with an innovative twist. Pro-Financial offers both actively
managed and passively managed investment solutions for Canadian investors.





For further information:

For further information: Preet Banerjee, B.Sc., FMA, DMS, Senior Vice
President, Pro-Financial Asset Management, (647) 224-0623,
preetb@pro-financial.ca, http://www.pro-financial.ca

Organization Profile

PRO-FINANCIAL ASSET MANAGEMENT

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890