Doing things differently
The Holidays are fast approaching and unfortunately, some traditions will have to be skipped this year. Due to lockdown measures, large gatherings around the traditional turkey and cranberry sauce will probably not take place. However, various annual reviews will certainly be on the agenda.
Here is the 2020 review of our investment product returns.
A very good year!
From the outset, we should point out that as at November 30, 2020 has been a great year for fdp funds. All our Series A funds without exception are in the first or second quartile of their respective category in the Morningstar rankings.
In fact, 100% of our funds had above-median performance, as did the three responsible investment funds of our partner Mackenzie which are part of our offer. Once again this year, our team of internal and external investment managers delivered the goods.
Our balanced portfolios still excellent
Now for a more in-depth analysis by asset class. Honour where honour is due, let’s start with our balanced funds. The FDP Balanced Portfolio, which celebrated its 42nd anniversary this year, continued its tradition of excellence. It boasts a return 2.97% above the median of its competitors.
The other two balanced funds also performed well, with the FDP Balanced Growth Portfolio beating the median by 2.50% and the FDP Balanced Income Portfolio, by 0.73%. This performance undoubtedly explains the popularity of these funds with our clients.
Fixed income up
On the fixed income side, our three solutions, i.e. the FDP Cash Management Portfolio, the FDP Canadian Bond Portfolio and the FDP Global Fixed Income Portfolio, compare favourably with the competition. This asset class doesn’t usually cause much excitement, but this year it has played a key role.
- Our FDP Canadian Bond Portfolio, which provides a solid foundation for a portfolio, outperformed the median of its category by 8%.
- Our FDP Global Fixed Income Portfolio generated a return 1.58% above that of its competitors.
Strong relative performance in equities
The same goes for equities. Our two Canadian equity funds, the FDP Canadian Equity Portfolio and the FDP Canadian Dividend Equity Portfolio, stood out in particular.
- The median return for Canadian dividend equity funds is currently -4.86%. As at November 30, we managed to keep our dividend fund in positive territory with a return of 0.28%, or 5.14% above the median.
- As for the FDP Canadian Equity Portfolio, it posted a return that beat the median by 6.36%, placing it in the 5th percentile (year to date).
- Our three equity funds that invest outside Canada (FDP US Equity Portfolio, FDP Global Equity Portfolio and FDP Emerging Markets Equity Portfolio) all outperformed the median of their respective category by 1.63% to 2.58%.
Skill and experience, still a winning combination
2020 will be remembered as an eventful year, but also an excellent year in terms of the performance of our products. If it is true that, to quote Martin Luther King: “The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy,” our investment team was up to the challenges they faced. Hats off!
And very Happy Holidays to all!
If you have any questions about this article or the performance of your portfolio, feel free to contact your advisor, your best resource for the overall management of your assets.
Stéphane Girard, MBA, CIMTM, Fin. Pl.
Investment and Product Knowledge Specialist
The information contained herein has been obtained from sources deemed reliable, but we do not guarantee the accuracy of this information, and it may be incomplete. The opinions expressed are based upon our analysis and interpretation of this information and are not to be construed as a recommendation. For any questions, don’t hesitate to contact your wealth management advisor or your tax specialist, accountant or legal advisor.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns net of fees and expenses payable by the fund including changes in security value and reinvestment of all dividends/distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
About Morningstar
The Morningstar Risk Adjusted Return (MRARs), commonly referred to as the Star Rating, relate the risk-adjusted performance of a fund to its peers with the same CIFSC (Canadian Investment Fund Standards Committee) Fund category for the period ended as noted and are subject to change monthly. The ratings are an objective, quantitative measure of a fund’s historical risk-adjusted performance relative to other funds in its category. Only funds with at least a three-year track record are considered. The overall star rating for a fund is a weighted combination calculated from a fund’s 3-, 5- and 10-year returns, as available, measured against the 91-day treasury bill and peer group returns. A fund can only be rated if there are a sufficient number of funds in its peer group to allow comparison for at least three years. To determine a fund’s rating, the fund and its peer are ranked by their MRARs. If a fund scores in the top 10% of its category, it receives five stars (High); if it falls in the next 22.5% , it receives four stars (Above Average); the next 35% earns a fund three stars(Neutral or Average); those in the next 22.5% received two stars (Below Average); and the lowest 10% received one star (Low). For greater detail, see morningstar.ca.
For the period ended on November 30, 2020, the returns of the FDP Balanced Portfolio (Series A) are as follows: 7.18% (1 year – 598 funds), 6.05% (3 years – 553 funds), 6.22% (5 years – 436 funds), 6.31% (10 years – 182 funds) and 7.88% (since inception – March 31, 1978).
For the period ended on November 30, 2020, the returns of the FDP Balanced Growth Portfolio (Series A) are as follows: 7.91% (1 year – 1214 funds), 6.52% (3 years – 1015 funds), 6.75% (5 years – 766 funds), 7.55% (10 years – 321 funds) and 5.43% (since inception – April 30, 2001).
For the period ended on November 30, 2020, the returns of the FDP Balanced Income Portfolio (Series A) are as follows: 5.71% (1 year – 581 funds), 5.12% (3 years – 483 funds), 4.67% (5 years – 383 funds), 4.93% (10 years – 199 funds) and 4.82% (since inception – November 1, 2010).
For the period ended on November 30, 2020, the returns of the FDP Cash Management Portfolio (Series A) are as follows: 1.39% (1 year – 216 funds), 1.54% (3 years – 188 funds), 1.29% (5 years – 156 funds), 1.22% (10 years – 121 funds) and 3.93% (since inception – December 31, 1987).
For the period ended on November 30, 2020, the returns of the FDP Canadian Bond Portfolio (Series A) are as follows: 6.76% (1 year – 525 funds), 4.79% (3 years – 448 funds), 3.75% (5 years – 356 funds), 3.53% (10 years – 181 funds) and 7.48% (since inception – March 31, 1978).
For the period ended on November 30, 2020, the returns of the FDP Global Fixed Income Portfolio (Series A) are as follows: 3.53% (1 year – 457 funds), 2.92% (3 years – 416 funds), 3.52% (5 years – 292 funds) and 2.31% (since inception – December 21, 2012).
For the period ended on November 30, 2020, the returns of the FDP Canadian Equity Portfolio (Series A) are as follows: 5.99% (1 year – 678 funds), 6.26% (3 years – 595 funds), 7.20% (5 years – 423 funds), 6.31% (10 years – 221 funds) and 7.54% (since inception – December 31, 1987).
For the period ended on November 30, 2020, the returns of the FDP Canadian Dividend Equity Portfolio (Series A) are as follows: 0.49% (1 year – 556 funds), 4.08% (3 years – 495 funds), 4.85% (5 years – 360 funds), 6.75% (10 years – 190 funds) and 5.31% (since inception – February 1, 2008).
For the period ended on November 30, 2020, the returns of the FDP US Equity Portfolio (Series A) are as follows: 13.64% (1 year – 1635 funds), 11.25% (3 years – 1341 funds), 11.67% (5 years – 854 funds), 14.92% (10 years – 344 funds) and 4.48% (since inception – September 29, 2000).
For the period ended on November 30, 2020, the returns of the FDP Global Equity Portfolio (Series A) are as follows: 9.63% (1 year – 2043 funds), 9.62% (3 years – 1610 funds), 9.94% (5 years – 1077 funds), 11.88% (10 years – 519 funds) and 6.89% (since inception – April 18, 2005).
For the period ended on November 30, 2020, the returns of the FDP Emerging Markets Equity Portfolio (Series A) are as follows: 12.93% (1 year – 288 funds), 2.14% (3 years – 229 funds), 6.63% (5 years – 153 funds), 3.38% (10 years – 77 funds) and 5.43% (since inception – April 1, 2009).
For the period ended on November 30, 2020, the returns of the Mackenzie Global Sustainability and Impact Balanced Fund (Series A) are as follows: 8.28% (1 year – 1588 funds), 5.15% (3 years – 1351 funds) and 5.97% (since inception – October 16, 2017).
For the period ended on November 30, 2020, the returns of the Mackenzie Global Leadership Impact Fund (Series A) are as follows: 9.98% (1 year – 2043 funds), 8.67% (3 years – 1610 funds) and 10.18% (since inception – October 16, 2017).
For the period ended on November 30, 2020, the returns of the Mackenzie Global Environmental Equity Fund (Series A) are as follows: 51.24% (1 year – 317 funds) and 34.49% (since inception – October 17, 2018).
© 2020 Morningstar Research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guarantee of future results. Source: Morningstar Direct and Professionals’ Financial, as at November 30, 2020.
