It was another positive month for the portfolios, with each finishing in positive territory, and modestly outpacing their benchmarks.
For a review of the portfolios’ performance, 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 the Growth Portfolio that had the strongest showing this month, gaining 0.6%, and outpacing its benchmark. It was the mid-cap focused Sentry Small Mid Cap Income Fund that was the biggest contributor to this outperformance, with a very solid 2.4% rise. CI Black Creek Global Leaders and Fidelity Canadian Large Cap Fund were also positive contributors. The biggest detractor was the conservatively positioned Mackenzie Ivy Foreign Equity Fund, which was the only fund to finish in negative territory, and lagged the MSCI World Index.
With a very modest 0.38% gain, the Conservative Portfolio had the best showing against its benchmark, thanks to the strong showing of the Sentry Small Mid Cap Equity Fund. Each of the fixed income holdings matched or bested the index, and the Ivy Foreign Equity was again the headwind to the portfolio.
As we enter what has historically been the most volatile period of the year, the portfolios remain well positioned. With the exception of the more growth focused TD U.S. Blue Chip Equity Fund, and the CI Black Creek Global Leaders, each of the funds tends to be more conservatively positioned than their peers. This is expected to result in better performance in volatile markets, but underperformance in rising markets.
I will continue to monitor the portfolios and their underlying funds for any erosion in the risk reward metrics and will make any changes as necessary.