Dave Paterson’s Top Funds Report is published on a monthly basis and highlights the best funds that were reviewed in the past month. This is an invaluable tool that provides you with indepth, expert analysis on a wide range of mutual funds and ETFs.
You can browse through our previous editions below. You can also view our recent Mutual Fund Reviews here.
If there is a fund that you would like to see reviewed in a future edition, please send your request to feedback@paterson-associates.ca.
Top Funds Report – January 2018
Download a PDF Copy of this report Review and Outlook for 2018 Scorecard on last year’s outlook, plus a look at what’s in store for the next 12 months. Last year around this same time, in my annual outlook commentary, I said that the biggest threat to the markets was valuation. Back then, the S&P 500 was trading at 21.3 times earnings and 17.6 times forward earnings. I noted also the 10-year average was more in the range of 14 times earnings. I even went so far as to say, “…lofty equity returns appear unlikely at current...
read moreTop Funds Report December 2017
The much-feared fall selloff just didn’t happen this year, as November logged another positive month for equity markets, with all the major indices finishing higher. The trend continued well into December with record highs set weekly, if not daily.
The S&P/TSX Composite gained 0.5% in November, while the S&P 500 Composite advanced 3.1% and the MSCI EAFE Index rose 1.1%.
In Toronto, both energy and materials finished the month lower, while the financial sector posted a very modest 0.4% rise. Energy issues declined despite a 5.6% rise in WTI crude oil.
read moreTop Funds Report – November 2017
ctober was a strong month for Canadian investors, as the S&P/TSX Composite Index rose 2.7% month over month from September supported by strength in both the energy and financial sectors.
The broader market benefitted from a surge in oil prices, which hit their highest level in more than two years. A barrel of West Texas Intermediate crude oil closed the month at $54.38, a gain of more than 5% in the month. Energy stocks, which make up nearly 20% of the S&P/TSX index, rose by 1.8%. With interest rates moving lower recently, financials, particularly banks, have benefitted from higher margins. The financials index accordingly advanced nearly 4.6% in October.
read moreTop Funds Report – October 2017
eptember is usually an “interesting” month, and this year proved to be no different. Plenty of scare headlines occupied pretty much every available media channel with plenty of grist of the anxiety mill: nuclear testing and missile firing by North Korea; destructive earthquakes; devastating hurricanes; and news of a data breach at Equifax, a major credit reporting agency, which is reportedly still undergoing cyberattacks.
The world’s equity markets, however, were mostly unfazed by all the excitement. The S&P/TSX Composite Index gained 2.8% in September, month over month, buoyed by strength in the energy and financial sectors. The S&P 500 Composite Index advanced 1.9% in U.S. dollar terms, and the MSCI EAFE Index rallied by 2.2%.
read moreTop Funds Report – September 2017
Historically, August has been a sleeper of a month for investors, as many take time away to enjoy the last few weeks of summer. If one only looked at the investment returns, you may believe this August was no different, as many global markets finished the month roughly where they started. However, digging deeper the month was anything but dull.
Starting with the good news, it became clear that the global economy was enjoying synchronized global growth for the first time since the onset of the global financial crisis. Unfortunately, geopolitical concerns took center stage, as the U.S. and North Korea started a war of words that had some worried Armageddon was imminent. Fortunately, calmer heads prevailed, and markets were largely flat to mixed.
read moreTop Funds Report – August 2017
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
July saw Bank of Canada Governor Steven Poloz pull the trigger, pushing the Bank’s key overnight lending rate higher by 0.25%. This move has sent yields up, with the yield on the Canada five-year bond move from 1.38% on June 30, to 1.65% on July 31. There was similar movement across the yield curve, with the Canada ten-year moving from 1.75% to 2.06%, and the long bond moved from 2.13% to 2.47%. This rise in yields pushed bond prices lower, with the long end of the curve taking most of the damage.
read moreTop Funds Report – July 2017
Download a PDF Copy of this report Equities mixed, higher yields drag bonds Worries over a Bank of Canada rate hike pulls down bonds, pushed up dollar… Equity markets were mixed in June, with Asia, led by China leading the way, with a 4.2% gain in U.S. dollar terms. Here at home, the S&P/TSX Composite fell by 0.75% on continued weakness in energy. Financials stabilized after the Home Capital meltdown in May, gaining 2.2%. The S&P 500 rose by 0.6%, but when the surge in the Canadian dollar was considered, lost 3.3% on the...
read moreTop Funds Report – June 2017
Markets were mixed in what turned out to be a relatively uneventful May, at least in comparison with the last couple of months. The S&P/TSX Composite Index sank by 1.3% on weakness in energy and financial names. Foreign equity markets were mostly higher, with Europe leading the way, as the MSCI Europe Index gained 5.1% in U.S. dollar terms. U.S. equities were positive, with a modest 1.4% rise in the S&P 500 in U.S. dollar terms. Asian markets were mixed.
Investor confidence in the two largest sectors of the Canadian market continued to weigh. Energy names faced headwinds as the oil price fell by more than 2% as increasing U.S. production raised supply worries. Also hurting the sector was Canadian dollar strength, which saw the loonie gain 1.2% in the month.
read moreApril 2017 – Top Funds Report
Download a PDF Copy of this report March sees strong gains for investors Another solid month pushes valuations even higher. Looking for strong earnings to justify current levels… March was a solid month for investors with gains across the board. The FTSE/TMX Canadian Universe Bond Index gained 0.41%, as yield remained largely unchanged in the month. Corporate and long term bonds outperformed, largely because of their higher yield to maturities. Turning to equities, the S&P/TSX Composite was positive, generating 1.3% for...
read moreTop Funds Report – March 2017
Download a PDF Copy of this report February sees some calm return to markets Equities around the globe move higher, volatility touches multi-year lows. Valuations remain a concern… February was a good month for investors, with gains across the board. Equity markets were the big winners, with the foreign markets leading the way. The S&P 500 rose by nearly 4% in U.S. dollar terms, while the MSCI EAFE Index gained 1.5%. With the U.S. greenback gaining on the loonie, returns in Canadian dollar terms were even better, with the...
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