S&P Releases Q2 2008 Index Versus Active Fund Scorecard for Canada

    Small/Mid Cap Equity Funds Make a Comeback

    TORONTO, Sept. 3 /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 second quarter of
2008, only 31.2% of Canadian equity active fund managers outperformed the
S&P/TSX Composite Index. Active managers in the Small/Mid Cap Equity category
fared better with 57.7% beating the S&P/TSX Completion Index. Similarly, in
the Canadian Focused Equity category 51.7% of active funds outperformed the
blended benchmark of 50% S&P/TSX Composite + 25% S&P 500 + 25% S&P/Citigroup
    "This latest SPIVA results highlight the volatility of shorter-term
outperformance for active funds," says Jasmit Bhandal, director at Standard &
Poor's. "When compared to Q1 2008, some active funds fared better than their
respective benchmark during the second quarter; however, a review of
performance over the long-term indicates that a majority of active funds
continue to underperform their respective benchmarks."
    SPIVA reports the performance of actively managed Canadian mutual funds
corrected for survivorship bias, and shows equal- and asset-weighted peer
    SPIVA results for the second quarter of 2008 showed mixed results in
mutual funds investing outside of Canada. 51.2% of active U.S. Equity funds
outperformed the S&P 500, only 31.8% of International Equity funds
outperformed the S&P/Citigroup EPAC PMI Index and 55.9% of Global Equity funds
outperformed the S&P/Citigroup World PMI Index.
    The majority of active funds underperformed their respective S&P
benchmark over one, three- and five-year periods. Only 15.2%, 11.6% and 6%
respectively, of active Canadian Equity funds were able to outperform the
S&P/TSX Composite Index over these periods respectively. For active funds in
the Canadian Focused Equity category 47.8%, 41.7% and 49.4% of funds outpaced
the blended S&P/TSX Composite benchmark index over the one, three- and
five-year periods respectively.


    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 39.7% for Canadian equity, 42% for
U.S. equity, 60.3% for international equity, and 41.5% 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 Q2 2008 SPIVA scorecard for Canada is
available on www.spiva.standardandpoors.com.

    About Standard & Poor's Index Services

    Standard & Poor's Index Services, the world's leading index provider,
maintains a wide variety of investable and benchmark indices to meet an array
of investor needs. Its family of indices includes the S&P 500, an index with
$1.5 trillion invested and $4.85 trillion benchmarked, and the S&P Global
1200, a composite index comprised of seven regional and country headline
indices. For more information, please visit www.standardandpoors.com/indices.

    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 and markets, 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 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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Standard & Poor's Canadian Index Operations

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