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 rough month for investors, as all major market indices finished in negative territory on worries that the slowdown in China will be worse than expected. Asian markets were understandably the hardest hit, with the MSCI Pacific ex-Japan Index dropping nearly 11% in Canadian dollar terms. Developed markets were also hard hit, falling between 4% and 6%. Even bonds, which traditionally move opposite stocks, were hit with losses as worries over the U.S. Federal Reserve pushing rates up in the fall weighed on investors.
The portfolios were not immune, each ending August lower, with the more aggressive portfolios the biggest losers. The Growth Portfolio was down 4.3%, the Balanced Portfolio lost 2.5%, and the Conservative Portfolio was lower by 1.6%. As disappointing as these numbers are, each portfolio managed to outpace its benchmark. The reason for this is the funds in the portfolios are more conservatively positioned than the broader markets, and I have placed an emphasis on risk management and capital preservation within each mandate.
Even with the disappointing absolute performance numbers, the portfolios continue to perform 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.