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.
It was a pretty rough month for the portfolios as all were firmly in the red and all but the Conservative model lagged their respective benchmarks.
The bright spots within the portfolios were the fixed income funds, namely the Dynamic Advantage Bond Fund which outpaced the FTSE/TMX Universe Bond Index by a wide margin, thanks to its more conservative, short duration positioning. With bond yields backing up, the shorter duration bonds held up better, helping to provide some downside protection for the portfolios.
The biggest drag on the relative performance within the portfolios was the Fidelity Canadian Large Cap Fund, which lost 0.86% in the month. In comparison, the S&P/TSX Composite was up by 2.4%. This underperformance can be attributed to two key factors. First, it is dramatically underweight energy names, which were one of the key drivers of return for equities in April. Second, it has nearly half the fund in U.S. stocks, which were lower in Canadian dollar terms thanks to a strengthening Canadian dollar.
With respect to overall performance, it was the Mackenzie Ivy Foreign Equity Fund that was the largest detractor. The fund was positive on the month, gaining 0.7% in U.S. dollar terms, but was dragged down by currency, finishing the month 4% lower. Still, it underperformed the MSCI World because of its overweight exposure to consumer and industrial names, which struggled in the month.
Despite the disappointing month, the portfolios are still performing within expectations. I have no immediate concerns surrounding any of the funds in the portfolios, and continue to monitor them closely. I believe they remain well positioned to deliver above average risk adjusted returns over the long term.