You can download our standard monthly portfolio report here. For those looking for even more detail, I am also providing additional reports generated from Morningstar which show even more detail regarding the portfolios. A summary report can be downloaded here, while the more detailed report can be downloaded here.
The positive momentum of January continued into February, with each of the portfolios firmly in positive territory. The Conservative Portfolio gained more than 1%, the Balanced was higher by nearly 2%, and the Growth Portfolio gained an impressive 3.35%.
While performance was positive in all portfolios, they lagged their respective benchmarks. There were two funds that were the main contributors to this underperformance; the Fidelity Canadian Large Cap and the Mackenzie Ivy Foreign Equity. The conservative positioning of these funds caused them to lag.
Last time around, I had expressed some concern regarding the shorter duration of the Dynamic Advantage Bond Fund. This month, that shorter positioning paid off, as the fund posted positive returns while the FTSE TMX Bond Universe Index was down.
After speaking with management, they believe that lower rates have largely been priced into bond prices and higher volatility is expected from here. That being the case, they believe the lower duration positioning is warranted. Given my focus is always on managing risk, I am willing to forgo potential upside in return for stronger downside protection. This is especially true when the risks are so clearly to the downside, as they are with bonds. Therefore, I will continue to keep the fund in the portfolios, but will continue to monitor the situation closely.
I believe the portfolios remain well positioned to deliver above average risk adjusted returns. I will continue to monitor them and their respective holdings to make sure they remain well positioned.