As described in more detail in this section, the Fundamental Index® approach corrects the structural problem of all cap-weighted indices. A cap-weighted index will overweight overpriced stocks and underweight underpriced stocks. This is exactly the opposite behaviour to what a rational investor would desire.
Our offerings, including the Fundamental Index Mutual Funds, are structured as open-ended trust units. We currently manage five FTSE RAFI® mandated funds, allowing a globally diversified FTSE RAFI portfolio. For those seeking monthly income, we also offer a FTSE dividend fund. The money market fund completes our line-up by providing a convenient place to park short-term money. You can learn more about each below.
PRO FTSE NA Dividend Index FundThe PRO FTSE NA Dividend Index Fund is designed to replicate the performance results of the FTSE Custom North American Dividend Index (net of expenses), which selects the top 35 forecasted dividend yielding companies from the FTSE RAFI Canada Index and the top 15 forecasted dividend yielding companies from the FTSE RAFI US 1000 Index (excluding REITS and closed end investment trusts). The Index is reconstituted and rebalanced annually with each security receiving an equal weight of 2% in the Index on the annual rebalance date. A targeted annual return of 5% will be paid through monthly distributions which will consist of dividend income, capital gains, and return of capital in proportions that may vary each month. To minimize currency risk, the fund will regularly review and hedge its US dollar exposure.
Download the latest Fund Update Sheets here:
PRO FTSE RAFI Canadian Index FundThe PRO FTSE RAFI Canadian Index Fund is designed to replicate the performance results of the FTSE RAFI Canada Index (net of expenses), which ranks and weights companies, not by market capitalization, but instead by the four fundamental financial data points (cash flow, dividends, book value and sales). The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Download the latest Fund Update Sheets here:
PRO FTSE RAFI US Index FundThe PRO FTSE RAFI US Index Fund is designed to replicate the performance results of the FTSE RAFI US Index (net of expenses), which ranks and weights companies, not by market capitalization, but instead by the four fundamental financial data points (cash flow, dividends, book value and sales). The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Download the latest Fund Update Sheets here:
PRO FTSE RAFI Global Index FundThe PRO FTSE RAFI Global Index Fund is designed to replicate the performance results of the FTSE RAFI Global ex US Index (net of expenses), which ranks and weights companies, not by market capitalization, but instead by the four fundamental financial data points (cash flow, dividends, book value and sales). The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Download the latest Fund Update Sheets here:
PRO FTSE RAFI Emerging Markets Index FundThe PRO FTSE RAFI Emerging Markets Index Fund is designed to replicate the performance results of the FTSE RAFI Emerging Markets Index(net of expenses), which ranks and weights companies, not by market capitalization, but instead by the four fundamental financial data points (cash flow, dividends, book value and sales). The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Download the latest Fund Update Sheets here:
PRO FTSE RAFI Hong Kong China Index FundThe PRO FTSE RAFI Hong Kong China Index Fund is designed to replicate the performance results of the FTSE RAFI Hong Kong China Index (net of expenses), which ranks and weights companies, not by market capitalization, but instead by the four fundamental financial data points (cash flow, dividends, book value and sales). The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Download the latest Fund Update Sheets here:
PRO Money Market Fund
The investment objective of the Pro Money Market Fund is to provide investors maximum protection of capital while providing a competitive short-term rate of return.
The Fund invests in high quality money market instruments, including commercial paper issued by corporations, short-term notes, treasury bills and other money market instruments, floating-rate notes, term deposits at Canadian banks, bonds and debentures including treasury bills issued by the Government of Canada or by the government of a province of Canada, and certain corporations. The weighted average term to maturity of the Fund’s investments must be no more than 90 days. The Fund aims to maintain a constant net asset value of $10.00 per unit.
This fund is available in both A and F class units.
