Investors Group Zombie Fund Apocalypse

Have some brains.  Don't feed the IG zombie funds either !
Investors Group is having a special meeting to gobble up their poor performing funds.  Gone (like the last Twinkie in Zombieland) are Investors Real Return Bond Fund, European Dividend Growth Fund, Summa Global SRI Fund, Summa Global SRI Class, Mergers & Aquisitions Fund, Mergers & Aquisitions Class, and Mackenzie Universal Global Growth Class.

When IG "double-taps" their zombie funds, rolling them up into similar viable funds, it creates a survivor bias in the returns - the performance of the zombies is deep-sixed forever while that of the continuing fund lives on.

What is the impact of this? A Zero Alpha Group news release stated it simply as this:

According to the Savant Capital/ZAG study, when the little-understood “survivor bias” factor is taken into account, actively managed mutual funds in all nine of the Morningstar Principia “style boxes” lagged their related indexes for the 10-year period. In all but one of the 42 narrower Morningstar fund categories, the survivor bias effect worked to inflate fund returns. The Savant Capital/ZAG analysis also shows that the purging of the weakest funds from the Morningstar database boosted apparent returns on average by 1.6 percent per year from 1995-2004.

I don't know what the big deal is.  IG doesn't even show fund return on my statements.  Just like in Zombieland Rule #22,  you have to know your way out .. of Investors Group funds that is.  Wait for those sky-high redemption penalties (deferred sales charges) to wind down, work on your cardio, and run away into some index ETFs that can mimic the return of the increasingly bigger and bigger IG survivor / continuing funds.


P3 Guaranteed Investment Return - Pizza Ponzi Pyramid !!!

See this guy for a scheme that doesn't work.
Where can you get a guaranteed 50% return on investment in one month.  Yes - one month with no risk.

It is possible if you consider P3 projects - no, not those old school Public Private Partnerships.  I mean Pizza Ponzi Pyramid schemes.  This is the best example I have found.  It's great for the pocket book but tough on the waistline.  Best of all, there are gluten free and Halal options in some markets.

See these guys for a tasty 50% return !
Feast your eyes on the tried and taste-tested analysis below.  You'll need a cash-back credit card, on internet connection for the online survey and an appetite since the questionnaire 'prize' is valid for thirty days.

The return is 50% on in investment and you could earn that in as little as a few days and in two visits if you are on your second or greater iteration of the scheme (and have the fee item in hand at the first visit).

CareVest MIC Capital Loss on Converted Shares

If you are redeeming CareVest MIC shares this year, you may have to consider the capital loss considerations with the conversion and reevaluation of shares.

For example, Series 2 First Preferred shares bought a few years ago at $1.00 per share would have been converted to amalgamated corporation shares that were converted to Class A shares.  My statements show a conversion of 0.09517 meaning 1000 original shares with a purchase valued of $1000 gets you 95.17 new shares.  At $9.90 each, the value of the new shares is $942.18.  That's a loss of 5.7% or most of one years'returns from the MIC before the conversion.

The current distribution rate for Class A shares is cited as 0.036400 per month, or about 4.4% per year.


Pizza Pizza Investor Smiles

Even the pizza is smiling !
Investors who put their dough into Pizza Pizza certainly have something to smile about.  The royalty corps (TSX:PZA) has risen over $1 a share to over $12 over this past month.

It has been a strong run over the past few years as well and up a not-too-crusty 20% since the last post recommending it here in January.  That capital growth is on top of the baked-in 6.2% dividend you get at today's price.

Recently the company announced a 4% increase to its monthly shareholder dividend (up from $0.0625 to $0.065 per share).  As an eligible Canadian dividend, that return is equivalent to interest earnings of over 8% after tax.  Investors looking for yield should consider this as part of a diversified income producing portfolio.


CareVest MIC back to Carecana from Valiant

Longest-running, strong
 performing MIC
Pucker up to Carecana again.  Shareholder transfer agent duties are going back to Carecana from  Valiant Trust.  All inquiries and administrative requirements will be handled by Carecana Investor Relations - 1 800 278 3611.

Let's hope those CareVest MIC Class A share redemption cheques keep coming, and there is no interruption of staged payments for retracted shares.

Some MICs just keep rolling and rolling!