With a year in the books we wanted to share information on the performance of four groups of investment portfolios under which we classified our client accounts. We formed the four groups – Aggressive, Growth-Seeking, Moderate & Conservative – based on the nature of each individual client account and the investment goals. The Aggressive group is comprised of investment portfolios that have the most amount of equity exposure, while the Conservative group has the least amount of exposure to equities.
There have been a few articles posted lately that reflect some major maladies in the Canadian mutual fund industry. According to a recent Morningstar report, Canadian mutual funds have the highest fees amongst 25 countries covered in the report, coming in at an average of 2.35 per cent. Some recent studies have highlighted the fact that what you pay for isn’t always what you get. A summary of two articles is below, as well as some changes that will help investors see what costs they are paying.
Canadian and U.S. equity markets were flat in November, while bonds declined in value on expectations of a rate increase from the Federal Reserve in the U.S., in December. Strong consumer spending and employment data in the U.S. continues to support the need for a rate increase. And we continue to see the U.S. economy as the bright spot in today’s investment landscape.