It was a tough month for the portfolios, with each finishing the month of April in negative territory, and each lagging their respective benchmarks.
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.
Global equity markets were largely mixed, with the S&P 500 gaining 0.4% in U.S. dollar terms, while the MSCI EAFE Index gained 3.0%. Unfortunately for Canadian investors, a rebound in commodities, namely oil and gold, saw a sharp appreciation in the Canadian dollar relative to the U.S. greenback. With the Canadian dollar gaining strength, many of the investment gains turned to losses once the currency effect was taken into account. The S&P/TSX Composite rallied, gaining nearly 3.7%, with energy and materials leading the way. The materials sector gained more than 20%, and energy rose by nearly 9%.
Turning to the portfolios, our underweight exposure to Canada, and specifically the energy and materials sector was the key reason for the underperformance. The Canadian equity funds dramatically lagged the Canadian markets. Also hurting was the Mackenzie Ivy Foreign Equity Fund, which lagged on its conservative positioning, including a very high cash balance.
Despite the poor showing in April, I continue to believe the portfolios are well positioned for the environment. They provide a nice balance between growth potential and managing risk and have asset mixes and fund choices that are solid. I will continue to monitor the funds for any meaningful erosion in the risk reward metrics.