S&P Releases Q1 2008 Index Versus Active Fund Scorecard for Canada

    Active Fund Managers Continue to Underperform Indices During Volatile

    TORONTO, June 24 /CNW/ - Standard & Poor's, the world's leading index
provider, announced today the latest results for the Standard & Poor's Indices
Versus Active Funds Scorecard (SPIVA) for Canada. For the first quarter of
2008, only 8.2% of Canadian equity active fund managers outperformed the
S&P/TSX Composite Index. Active managers in the Canadian Focused Equity
category fared better with 46.3% beating the blended S&P/TSX Composite
benchmark (comprised of 50% S&P/TSX Composite, 25% S&P 500, and 25%
S&P/Citigroup EPAC PMI). In the Canadian Small/Mid Cap Equity category only
24.1% of active managers outpaced the S&P/TSX Completion Index.
    "Even during turbulent market conditions we continue to see the majority
of active fund managers underperforming their relative S&P style benchmark,"
says Jasmit Bhandal, director at Standard & Poor's. "In addition, SPIVA
results continue to show that active fund managers lag their passive
counterparts on a one-, three-, and five-year period."
    SPIVA reports the performance of actively managed Canadian mutual funds
corrected for survivorship bias, and shows equal- and asset-weighted peer
averages. Over the past twelve months, actively managed Canadian Equity,
Canadian Focused Equity and Canadian Small/Mid Cap Equity equal weighted
returns are lower than their respective indices, the S&P/TSX Composite Index,
the blended S&P/TSX Composite benchmark index, and the S&P/TSX Completion
Index. Equal weighted returns of the aforementioned indices exceeded active
managers in these categories by 5.2%, 0.1% and 2.3% respectively.
    SPIVA results also show that, over the past twelve months, the equal- and
asset-weighted returns of active International, Global Equity, and U.S. Equity
funds have come in below the index returns for each category (the
S&P/Citigroup EPAC PMI, S&P/Citigroup World PMI and S&P 500 indices
respectively). Equal weighted return differentials for the last 12 months are
2.8%, 0.5% and 1.4% between the aforementioned indices and active managers.
    The majority of active funds have also underperformed their respective
S&P benchmark over one, three- and five-year periods. In the five-year period,
only 13.1%, 11.9%, and 10.3% of International Equity, Global Equity, and U.S.
Equity funds, respectively, have outperformed the S&P/Citigroup EPAC PMI,
S&P/Citigroup World PMI and the S&P 500 benchmarks.


    SPIVA reports also include a survivorship bias correction to account for
funds that may have merged or been liquidated during the period under study.
Survivorship over the past five-years is 38.8% for Canadian equity, 42% for
U.S. equity, 60.7% for international equity, and 42.2% for global equity. In
other words, a significant percentage of the funds in these four categories
has been merged or liquidated over the past five years.

    About SPIVA

    The SPIVA methodology is designed to provide an accurate and objective
apples-to-apples comparison of funds' performance versus their appropriate
style indices, correcting for factors that have skewed results in previous
index-versus-active analyses in the industry. SPIVA scorecards show both
asset- and equal-weighted averages and include survivorship bias correction to
account for funds that may have merged or been liquidated during the period
under study. Fund categorizations are as defined by the Canadian Investment
Funds Standards Committee (CIFSC), and fund data is drawn from Fundata's
mutual fund database.
    The complete Q1 2008 SPIVA scorecard for Canada is available on

    About Standard & Poor's

    Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:  MHP), is
the world's foremost provider of financial market intelligence, including
independent credit ratings, indices, risk evaluation, investment research and
data. With approximately 8,500 employees, including wholly owned affiliates,
located in 23 countries, Standard & Poor's is an essential part of the world's
financial infrastructure and has played a leading role for more than 140 years
in providing investors with the independent benchmarks they need to feel more
confident about their investment and financial decisions. For more
information, visit http://www.standardandpoors.com.

For further information:

For further information: Jasmit Bhandal, Standard & Poor's, (416)
507-3203, jasmit_bhandal@standardandpoors.com; David R. Guarino, Standard &
Poor's, (212) 438-1471, dave_guarino@standardandpoors.com

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