To assist financial advisors, we have created a series of model portfolios that are designed to meet the investment objectives and risk tolerance of a number of different investor types. These portfolios are updated on a monthly basis. Alternatively, if you would prefer to have something more customized, contact us and we can work with you to help you build a fully optimized portfolio or series of portfolios based on your specific fund preferences and investment criteria.
March 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%.
read moreJanuary 2018 – Portfolio Review
2018 started much like 2017 ended, with U.S. and global markets rallying higher. The S&P 500 gained 5.7% in U.S. dollar terms, and the MSCI EAFE Index gained 5.0%. Emerging markets, driven by a 12.5% surge in China were also very strong, as the MSCI Emerging Markets Index gained 8.3%. Closer to home, the S&P/TSX Composite bucked the global trend, and sold off modestly, falling 1.4% on weaker energy. The Energy sector lost 5.4% even as the price of oil rallied higher by more than 7%.
read moreDecember 2017 – Portfolio Review
2017 turned out to be a much better year for investors than many, including myself had predicted. Last year, I commented that the biggest threat to the markets was valuation, with the S&P 500 trading at 21.3 times earnings, and 17.6 times forward earnings, noting the ten-year average was more in the 14 range. I even went so far as to say “…lofty equity returns appear unlikely at current levels, meaning more subdued returns can be expected on a go forward basis.”
read moreNovember 2017 Portfolio Review
It was another positive month for investors as both equity and bond markets rallied higher. This resulted in the fourth month in a row of gains for our Model Portfolios. Our Conservative Portfolio gained 0.25%, our Balanced Portfolio rose by 0.50%, and the all-equity Growth Portfolio was higher by 1%. In Canada, the S&P/TSX Composite gained a very modest 0.5% while foreign markets fared better. The S&P 500 Index rose by 3.1%, and the MSCI EAFE Index returned 1.1%.
read moreOctober 2017 Portfolio Review
October was a strong month for Canadian investors as both stock and bond markets rallied higher around the globe. This translated into positive returns for the portfolios, each finishing in positive territory. The Conservative Portfolio rose by 1.4%, the Balanced Portfolio gained 2.6%, and the all-equity Growth Portfolio was higher by 4.5%.
read moreSeptember 2017 Portfolio Review
Looking back through time, September and October have been the most difficult months for investors. If there is a big drop in the equity markets, chances are, it’ll happen during these two months. Well touch wood, one down, and one to go, with September being a decent month for most investors. Global equity markets were mostly higher, while Canadian fixed income markets closed lower on rising yields. Turning to our model portfolios, each finished in positive territory. Our Conservative Portfolio rose by 0.1%, our Balanced Portfolio was higher...
read moreAugust 2017 Portfolio Review
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 moreJuly 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 portfolios’ performance and risk reward metrics, you can download our standard monthly portfolio report here. Additional detail can be found in these...
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.
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