You can download our 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.
Despite Canadian and international equity markets finishing down in December, the portfolios managed to post very modest positive returns.
The Conservative Portfolio rose by 0.1%, but failed to keep pace with its benchmark. The main detractor from this performance was the 45% weighting in the PH&N Short Term Bond & Mortgage Fund. There are no short term bonds in the benchmark. So while the fund was positive, it lagged the stronger gains posted by the broader Canadian bond market. The other detractor was the Dynamic Advantage Bond Fund which lagged because of its much shorter duration positioning compared with the broader market.
The biggest contributor was the Fidelity Canadian Large Cap which has substantial underweight position in energy and financials, two sectors that have been hit pretty hard of late. Its U.S. exposure was also a key contributor to its outperformance.
The other portfolios all followed a similar pattern, posting modest gains, but slightly lagging their respective benchmark because of their defensive positioning.
One of the biggest detractors from the relative performance was the TD U.S. Blue Chip Fund, which trailed the S&P 500 on the month.
Despite lagging their respective benchmarks, I believe the portfolios are well positioned to deliver above average risk adjusted returns. I will continue to monitor each of the portfolio and their respective holdings to make sure they remain well positioned.