February 2019 Model Portfolio Review
The market rally that kicked off the year in January kept on rolling through February with nearly all asset classes ending the month higher. Investor’s appetite for risk remained strong with small and mid-cap stocks outperforming large caps. The Russell 2000 gained 5.2% and the S&P 500 rose by 3.2%. The trend held globally as the MSCI World Small Cap Index was up by 3.8%, outpacing the large...
Read MoreWRAP Funds Report – February 2019
Fund of Fund or WRAP funds have consistently led the mutual funds sales stats in the past few years. Investor and advisor interest in the products are at an all time high, given the unprecedented levels of market volatility and uncertainty that is prevalent in the markets today. To help you zero in on the best WRAP funds available, we have created our new Monthly WRAP Funds Report that will be...
Read MoreSocially Responsible Investing Report – February 2019
With environmental, sustainability, and governance factors becoming more important to people, interest in the Socially Responsible Investing segment has never been stronger. In an effort to help keep investors and advisors informed on the SRI funds available, we have created our monthly Socially Responsible Investing Fund Report, which will be published on a monthly basis. You can download the...
Read MoreInvestment Fund Ranking Report – February 2019
Each month, we analyze nearly 2500 mutual funds, pooled funds, and hedge funds putting them through our proprietary quantitative valuation model. We then prepare our Monthly Fund Ranking Report which rates and ranks each of the funds in our universe based on a number of key risk / reward metrics. You can download our February 2019 Investment Fund Ranking Report here.
Read MoreRecommended List of Funds – January 2019
There is little question that floating rate investments can be a great way to help reduce the effects of rising rates in a portfolio, but it is important to note that these are not suitable as a core holding for the fixed income portion of a portfolio. While the reduction of interest rate sensitivity is undeniable, the credit risk is very real. It should be noted that the underlying loans are almost always unrated, and while they are secured by assets, the risks for default still exist. With their near zero duration, many investors make the mistake of thinking these investments are much like a cash substitute. Again, this is not the case as these are often non-investment grade loans that can sometimes fluctuate significantly. In the fourth quarter the average floating rate fund fell by more than 2%. A key reason for this decline was equity market volatility led investors towards traditional safe haven investments such as government bonds which lowered the demand for riskier investments pushing prices lower.
Read MoreJanuary 2019 Model Portfolio Review
Markets came roaring back strong in January after what can charitably be best described as a horror show in December. The S&P/TSX Composite Index shot higher, gaining 8.74% with all sectors moving up with heavyweight financials and energy leading the way. The S&P 500 gained more than 8% in U.S. dollar terms, and the MSCI EAFE Index rose by 6.6%.
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