Unhappy with Clarica fund

Question: I purchased some mutual funds from Mutual Life (now Clarica). Those funds (Premier Growth Fund) were purchased for $24.23 in 1997. Today they are worth $20.51. You stated today on CBC that for a 15% loss for one year it takes three to make it up. Considering there has been very little growth, I am considering pulling out and licking my wounds. What is more distressing is the fact that since there was name change they show only a loss of 6 or 7%. This should be illegal. Some Clarity eh?


First, I hope you understood when you purchased the units that Clarica Premier Growth is a small-cap fund. That means it is subject to above-average risk. If you aren’t comfortable with that, you should move to a more conservative fund.

Second, your actual return will depend on when you made the investment. However, this fund shows a two-year average annual compound rate of return of -3.4% to Jan. 31. This isn’t wonderful by any means, but it is not as bad as you suggest.

Third, the historical results don’t change because the name changes. The returns shown reflect the performance under the old Mutual name and the new Clarica name. This is stdard industry procedure.

Fourth, having said all that this is not a small-cap fund I would recommend on the basis of its performance so far. It shows a one year gain of 6.4%, which is way below the average for the category of 21.3%. There are many better small cap choices available. If it’s a small cap fund you want, look elsewhere and switch these assets into a Clarica fund that is doing better, such as Clarica MVP Equity.