MBA, CIMTM, Fin. Pl.
Investment Specialist, Products Knowledge
A memorable year
The year 2020 will certainly go down in history for many reasons. For sports enthusiasts, this will be the first year since 1879 in which the major league baseball regular season had fewer than 80 games. It will also be the year that saw many prestigious sporting events cancelled or postponed, including the Tokyo Olympics, the Stanley Cup and the Rogers Cup.
Upheaval and excesses
Obviously, the lockdown and the restrictions imposed by the COVID-19 pandemic will remain in our memories as well. Investors will, with a shudder, remember the volatility of the financial markets, their dizzying ups and downs, but also the excellent performance of Professionals’ Financial mutual funds in this uncertain environment.
We have not yet reached mid-year and the Financial’s investment products are already standing out in the mutual fund universe in Canada.
- As at May 31, 2020, nine of our eleven mutual funds are ranked in the first or second quartile of their respective category by Morningstar. This means that 82% of our funds are outperforming the median of comparable funds in the country.
- This percentage increases to 86% when we add the three responsible investment funds which are also part of our offer.
- If we extend the period to the past 12 months, our record is even more impressive, with 100% of our series A funds and our three responsible investment funds in the first and second quartile of the Morningstar rankings.
- In addition, as at May 31, 2020, two of our funds, the FDP Balanced Portfolio and the FDP Balanced Income Portfolio, earned a Fundata FundGrade A rating for the month. This rating is given to fund managers who obtain the best risk-adjusted returns for their funds in Canada.
Considering everything that has happened in the markets over the past year, we can easily conclude that our managers have the experience and the skills to achieve maximum performance in all situations. Whether it’s sharp climbs, unexpected falls or sudden market reversals, our managers are able to capture, on a regular basis, a high percentage of stock market gains while limiting the impact of declines, with the clearly stated objective of staying ahead of the pack.
Five stars and an A rating!
One of our flagship funds, the FDP Balanced Portfolio, has just received its fifth star, awarded by Morningstar.
The 5-star rating is given to funds which are in the top 10% of funds in their category, based obviously on their return but also on the risk associated with this return. Combined with the above-mentioned Fundata FundGrade A rating, this attests that our balanced fund has one of the best risk-return ratios in the country.
Launched 42 years ago in March 1978, our balanced fund continues to perform well. You will not be surprised to learn that during this period, it only posted a negative return for five calendar years, with a compound net annual return of 7.77% for those 42 years. As at May 31, 2020, in the current environment, the FDP Balanced Portfolio had generated a return of -1.44% year to date in 2020.
For your portfolio, above all
All the credit for these excellent returns goes to our investment team, which is made up of experienced managers, as well as to the quality of the external managers who round out the team. Delivering good performance, year after year over a period of more than 40 years, is a feat of which we can all be proud.
This expertise, based on a thorough knowledge of the stock market, serves above all to protect your assets and to provide you with the best possible returns in the current environment. You can rely on the financial intelligence of our teams for your projects and your goals, and we remain by your side to help you achieve them.
Have questions about your investment portfolio? Our advisors are available and ready to talk to you.
Stéphane Girard, MBA, CIMTM, Fin. Pl.
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.
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.
The FDP Balanced Portfolio (Series A) is in the Canadian Neutral Balanced Fund category. The Fund received a 5-star rating over a 3-year period among 562 Balanced Funds, a 5-star rating over a 5-year period among 435 funds and a 4-star rating among 178 funds for a 10-year period. For the period ended on May 31, 2020, the returns of the FDP Balanced Portfolio (Series A) are as follows: 4.19% (1 year – 609 funds), 3.91% (3 years – 562 funds), 4.24% (5 years – 435 funds), 6.06% (10 years – 178 funds) and 7.77% (since inception – March 31, 1978).
© 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 May 31, 2020.
About Fundata Canada Inc.
Fundata supplies accurate and comprehensive data to the Canadian financial services industry and business media since 1987. Fundata is a leading provider of market and investment funds data on funds and securities in Canada.
About the monthly FundGrade A® rating from Fundata
The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by the Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade.
Ratings are subject to change every month. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.
The FDP Balanced Portfolio (Series A) received a FundGrade A® rating in the Canadian Neutral Balanced category out of a total of 609 funds, as defined by the Canadian Investment Funds Standards Committee (CIFSC), a Canadian organization that is independent from Fundata. This monthly rating is for the period of May 1, 2020 to May 31, 2020. For the period ending May 31, 2020, the performance of the FDP Balanced Portfolio is as follows : 4.19% (1 year – 609 funds), 3.91% (3 years – 562 funds), 4.24% (5 years – 435 funds), 6.06% (10 years – 178 funds) and 7.77% (since inception – March 31, 1978).
The FDP Balanced Income Portfolio (Series A) received a FundGrade A® rating in the Canadian Fixed Income Balanced category as defined by the CIFSC, out of a total of 588 funds. This monthly rating is for the period of May 1, 2020 to May 31, 2020. For the period ending May 31, 2020, the performance of the FDP Balanced Income Portfolio is as follows : 3.37% (1 year – 588 funds), 3.14% (3 years – 486 funds), 3.35% (5 years – 380 funds) and 4.33% (since inception – October 28, 2010).