Global equity markets were mixed, with the S&P 500 gaining a modest 0.3% in U.S. dollar terms. However, thanks to a further rise in the U.S. dollar, the return was 2.4% in Canadian dollar terms. The MSCI EAFE Index was in the red in local currency terms, but managed to eke out a 0.4% rise in Canadian dollar terms. With China continuing to struggle, the MSCI Emerging Markets Index lost nearly 4%. Closer to home, the S&P/TSX Composite was down 0.2% on weakness in oil, and more uncertainty around former index heavyweight Valeant Pharmaceuticals.
Despite this, the portfolios had a decent month, with all finishing in positive territory.
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.
The Conservative Portfolio rose by 0.5%, modestly outpacing its benchmark. Most of this outperformance can be attributed to the Canadian equity holdings; Fidelity Canadian Large Cap, and Sentry Small Mid Cap Income Fund, both of which gained more than 1% on strong stock selection and unhedged foreign equity exposure.
The Balanced Portfolio gained 1.0%, doubling the 0.5% gain of its benchmark. Again, it was the equity exposure that contributed to this outperformance, with all funds contributing positively.
Our most aggressive portfolio, the Growth Portfolio lived up to its name, gaining nearly 2%, handily beating the benchmark. All the equity funds contributed to the outperformance, except for TD U.S. Blue Chip, which slightly lagged its S&P 500 bogey.
I continue to be comfortable with the portfolios and their underlying holdings. They continue to deliver returns and a level of volatility that is within expectations. I will continue to monitor them, looking for any erosion in the key risk reward metrics.