August 2016 Portfolio Review
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...
Read MoreSocially Responsible Investing Report – August 2016
With environmental and human rights concerns 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 August 2016...
Read MoreWRAP Funds Report – August 2016
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 MoreInvestment Fund Ranking Report – August 2016
Each month, we analyze nearly 2000 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 August 2016 Investment Fund Ranking Report here.
Read MoreETF Focus List – September 2016
Additions
Vanguard Canadian Short Term Bond Index ETF (TSX: VSB) – This TSX traded ETF provides exposure to a portfolio of Canadian government and corporate bonds, that have a maturity that ranges between one and five years. It looks to track, on a net of fee basis, the performance of the Barclays Global Aggregate Canadian Government/Credit 1–5-year Float Adjusted Bond Index. The index is weighted by market capitalization.
Credit quality is high, with more than 55% of the fund rated AAA, 25% rated AA, and the balance A or BBB. Approximately 70% is invested in government or agency debt, with the balance being in corporate bonds. From a maturity perspective, nearly 30% comes due within one to two years, with the balance pretty even spread between the other yearly maturity buckets. This works out to an average maturity of 2.9 years, and an average duration of just 2.8 years. Geographically, it invests only in Canadian issues. The average yield to maturity is a mere 1.1%. With a management fee of 0.10%, the resulting MER is 0.11%, once taxes and other expenses are taken into account.
Read MoreRecommended List of Mutual Funds – July 2016
PowerShares 1 – 5 Year Laddered Corporate Bond Fund (AIM 53203– Front End Units) – In June, this laddered short term corporate bond fund underwent its annual reconstitution. When this happens, the five shortest duration bonds are removed from the index and replaced with ten bonds that have a term to maturity of five years are added in their place. The reason that ten bonds are replacing the five that were removed is last year, the index provider announced that over the next five years, the number of bonds in the index would be increased from 25 to 50. After the reconstitution, the fund held 35 bonds. I really see this as a positive, as the increased number of bonds increases the diversification, and reduces the security specific risk in the fund.
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