Monthly Recap
After posting strong gains in the first quarter of the year, equity markets retreated in April as investor concerns over the European debt crisis returned. The MSCI Europe Index dropped by nearly 3% after credit ratings agencies downgraded Spain’s debt with a negative outlook, hinting that further rating cuts may be coming. Spain paid a heavy price for this downgrade with the MSCI Spain Index plummeting by more than 13% in the month.
With the European debt crisis on the back burner in, global markets were relatively calm in the first quarter. As investor attention refocused on the crisis, markets were whipsawed in a way that was reminiscent of the volatility experienced in 2011.
Monthly Fund Ranking Report
Each month, we analyze more than 1200 mutual funds, pooled funds, and hedge funds putting them through our proprietary quantitative valuation model. We then prepare our Monthly Fund Ranking Report which rates and ranks each of the funds in our universe.
You can download our April 30, 2012 Investment Fund Ranking Report here.
Monthly Socially Responsible Investing Report
With environmental and human rights concerns becoming more important to people, interest in the Socially Responsible Investing segment has never been stronger. In an effort to help keep investors and advisors informed on the SRI funds available, we have created our monthly Socially Responsible Investing Fund Report, which will be published on a monthly basis.
You can download the April 30, 2012 Socially Responsible Investing Report here.
Monthly WRAP Report
Fund of Fund or WRAP funds have consistently led the mutual funds sales stats in the past few years. Investor and advisor interest in the products are at an all time high, given the unprecedented levels of market volatility and uncertainty that is prevalent in the markets today. To help you zero in on the best WRAP funds available, we have created our new Monthly WRAP Funds Report that will be published on a monthly basis. If there is a WRAP fund that you would like to see added to this report, please contact us and we will add it for our next edition.
You can download the April 30, 2012 WRAP Fund Report here.
Monthly Portfolio Review
April was not a particularly kind month to the portfolios as each portfolio lagged their respective benchmarks during the month. In all cases, this underperformance was a result of the Cundill Value Fund, which lost 6.2% during the month, underperforming the MSCI World Index by more than 4%.
On a positive note, the Canadian equity funds were strong relative performers, outpacing the S&P/TSX Composite Index. The Dynamic Global Real Estate Fund was the best performer on both an absolute and relative basis, gaining 3.9% during the month.
You can download our detailed Portfolio Review here.
Dividends – Are stocks better than funds?
With the recent levels of market volatility combined with the dismal yields on fixed income investments, interest in dividend stocks, mutual funds and ETFs has reached an all time high.
It’s not hard to see why. With the Bank of Canada holding overnight rates at 1 per cent, a 5-year government bond yielding 1.55 per cent and a 10-year government yielding 2.08 per cent, many high quality blue chip stocks are offering yields well in excess of those offered by bonds.