July 2018 Portfolio Review
On balance, July offered up a solid start to the third quarter. Despite the increasing global trade war, economic growth numbers to pointed to continued expansion. Corporate earnings, particularly in the U.S. were strong, thanks largely to the tax cuts introduced by President Trump back in December. Investors also took some solace in indications the U.S. may be willing to pull back a bit on the trade front, after the U.S. and Europe agreed to a cease fire on tariffs while a new trade deal is negotiated. There were also signs that the U.S. may be willing to reopen NAFTA negotiations.
Read MoreJune 2018 Portfolio Review
In this environment, the portfolios performed well, led by our equity focused Growth Portfolio which gained 1.96% on the month. This result outpaced its benchmark thanks to a strong showing from the quality focused Fidelity Small Cap America Fund and the defensively positioned Mackenzie Ivy Foreign Equity Fund. The defensively positioned Conservative Portfolio rose by 0.6% but trailed its index. The largest headwind was the Sentry Small Mid Cap Income Fund which trailed its benchmark, followed by the RBC Global Corporate Bond, which ended the month 0.3% lower in a very tough global credit environment. Our Balanced Portfolio earned 1.1%, which matched its benchmark.
Read MoreMay 2018 Portfolio Review
In this environment, the portfolios each finished higher. The Conservative Portfolio rose by 0.3%, the Balanced Portfolio gained 0.9%, and the all equity Growth Portfolio was higher by 1.5%. The portfolios again trailed their benchmarks, with the defensively positioned Fidelity Canadian Large Cap Fund and the Mackenzie Ivy Foreign Equity Fund weighing on relative performance. These funds continue to position for a more volatile market environment.
Read MoreApril 2018 Portfolio Review
The volatility that was so prevalent in February and March continued through most of April, again taking investors on a bit of a wild ride. Geopolitical headlines continued to dominate the news, with the prospect of a trade war between the U.S. and China, as well as rising tensions between the U.S. and Russia over Syria dominating the news flow.
Read MoreMarch 2018 Portfolio Review
The market volatility that started in February stuck around in March, taking investors for another wild ride. When all the dust settled, equity markets were lower and bond markets rallied. Turning to the portfolios, each finished the month in negative territory.
Turning to the portfolios, they each had a solid month given the market environment. The worst performer was the Growth Portfolio, which was down 1.1% in the month. Our Conservative Portfolio was lower by 0.1%, while the Balanced Growth Portfolio and Balanced Portfolio finished modestly higher, posting gains of 0.6% and 0.5% respectively.
Read MoreFebruary 2018 – Portfolio Review
anuary looked much like a continuation of 2017 with equity markets rallying higher, and volatility largely muted. February was a totally different story that saw the return of volatility which took equity markets on a roller coaster ride, with swings that were very reminiscent of 2008. The S&P/TSX Composite Index peaked in early January, and bottomed in mid-February, for a total peak to trough drop of more than 8%. South of the border, it was a similar story with the S&P 500 falling more than 10% peak to trough.
Fortunately, calmer heads prevailed, and markets were able to pare back some of the losses. For the month, the S&P/TSX Composite ended the month down by 3%, the S&P 500 ended 3.7% lower in U.S. dollar terms, and the MSCI EAFE Index was down 4.5%. throughout the selloff, the U.S. dollar showed strength, which muted losses for investors with unhedged currency positions. In Canadian dollar terms, the S&P 500 rose by 0.6%, while the MSCI EAFE Index was down by a very modest 0.3%.
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