July 2017 Portfolio Review
July was a continuation of June, with bonds down on worries over higher interest rates, and equity market were mixed with a stronger Canadian dollar acting as a further headwind. In this environment, the portfolios were again in negative territory. The Conservative Portfolio lost 1.1%, the Balanced Portfolio was off by 1.4%, and our Growth Portfolio fell by 1.7%. For a detailed review of the...
Read MoreJune 2017 Portfolio Review
It was another tough month for the portfolios, with each finishing firmly in negative territory in the month, as bonds sold off on the worry over higher rates, and global equities were mixed, with a surge in the Canadian dollar holding back returns. Still, the defensively positioned portfolios did what they were designed to do, and held up much better than their benchmarks, only participating in a fraction of the downside.
Read MoreMay 2017 Portfolio Review
It was a tough month for the portfolios, with each ending in negative territory, and lagging their respective benchmarks. The strongest showing came from our Growth Portfolio, which was flat on the month, while our Moderate Balanced Portfolio was down 0.5%, trailing its benchmark by more than 100 basis points. For a detailed review of the portfolios’ performance and risk reward metrics, you can...
Read MoreApril 2017 Portfolio Review
Each of the portfolios posted strong gains in April, led by the all equity Growth Portfolio, which gained 3.7%, outpacing its benchmark. Our Balanced Portfolio gained 2.2%, and our fixed income focused Conservative Portfolio rose by a more modest 1.1%, each lagging its benchmark.
Read MoreMarch 2017 Portfolio Review
It was another month where each of the portfolios posted positive returns, but lagged their respective benchmarks. The current market environment continues to reward more richly valued, expensive, higher beta names at the expense of more fairly valued, quality securities, which continues to create a headwind for the portfolios.
Read MoreFebruary 2017 Portfolio Review
Despite finishing in positive territory for the month, each of the portfolios trailed their respective benchmarks. Again, it was the conservative positioning, particularly of the global equity funds, which continues to act as a headwind in the portfolios. The recent bout of underperformance is certainly a test of one’s patience. It is particularly frustrating because I understand what each manager is doing, and why, but unfortunately the market is moving in a different direction. When I look at the fundamentals of the markets, particularly valuation, I can’t justify shifting the positioning of the portfolios for the sake of capturing stronger performance at the expense of capital protection. When markets correct, and they will, I firmly believe that each of the funds in these portfolios is positioned to better manage that downside.
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