Confusion about advertised performance numbers
Question: I have been a holder of the AGF Canadian Large Cap Dividend Fund since Aug 2007. My purchase price was $11.56. It closed on May 31 at $8.70. This represents a loss of about 25% to me. Can you please explain how this fund manages to advertise that it’s losses over 5 years is only -1.7%? How can my 25% loss be explained as a -1.7% average annual compound return? Answer: ...
Read MoreCouch Potato Portfolio Posts Modest Gains
Performance continues to improve but still lags more active strategies Our couch potato portfolio posted a modest 0.33% gain in the three month period ending April 30. Since its January 2008 launch, the portfolio has risen by a mere 1.03% per year on an annualized compounded basis, or a total return of 4.52%. It was once again the iShares S&P 500 Index Fund (CAD Hedged) (TSX: XSP) leading...
Read MoreETF Recommended List Review
With volatility returning to the markets, caution is warranted with a renewed focus on quality As we entered into 2012, our expectation was that markets would remain volatile for a number of reasons including the ongoing uncertainty coming out of Europe, worries over the health of the U.S. economy and concerns of an economic slowdown in China and other emerging markets. During the first quarter,...
Read MoreSteadyhand Turns Five
Client focused firm working to make clients better investors After having worked in the investment industry since 1994, I have developed a healthy sense of skepticism and cynicism which prevents me from getting too impressed when a fund company celebrates an anniversary or reaches a milestone. That said I have to admit that seeing Vancouver based Steadyhand celebrate their fifth birthday...
Read MoreDeath, taxes and higher MERs
Governments seek answers as to why fund fees are higher in Canada. Taxes are part of the problem. On September 28, Finance Minister Jim Flaherty announced that he plans to ask a Senate national finance committee to investigate why it is that Canadians pay higher mutual fund fees than Americans. With all due respect to Mr. Flaherty, I don’t think that we need a Senate committee to investigate...
Read MoreDeflation Risks Increasing
How deflation will impact your portfolio and how to protect against the risk. With interest rates expected to remain low for the near to medium term and economic growth appearing to be slowing, some experts have shifted their focus from the prospect of near term inflation to the prospect of deflation. Many of us are very familiar with the concept of inflation which is simply when prices in the...
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