Asset Allocation February 2017
Markets continued to advance in February with the S&P 500 up 4% bringing the YTD performance to 5.6%. Emerging markets equities are the best performing asset class in 2017 up 8.7% while commodities are down -1.2%. The technology sector is the top performer in the S&P 500 up nearly 10% while energy and telecom are the only two sectors in the red down -5.7% and -2.9% respectively. The TSX 60 is up 1.2% with the two resource sectors at opposite ends of the spectrum. Materials are the top performer up 5.2% while energy is the worst sector down -6.6%. Looking at factor performance, it is surprising that defense seems to be trumping cyclicality. Growth stocks are outperforming value, low volatility is leading high beta and large caps have outperformed small caps by nearly 5% in the first two months. Russia and Italy are the only two MSCI Country indices in the red and Poland is the best performing market in the world up 16%.
In fixed income, Global High Yield is leading and the HY spreads of every sector have declined except for Consumer Staples. Spreads sit near 52 Week lows across the board. The US Dollar gained 1.6% in February and now is down -1% for the year. Precious metals are the top performer in the commodity complex up 10.5% with silver leading the way with an impressive 15% gain in 2017. Energy continues to struggle down over 10% YTD led by natural gas which is off 25%.
To see a full analysis of February and download a PDF, click here.
This document may contain certain forward-looking statements. These statements may relate to future events or future performance and reflect management’s current expectations. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Neither the Funds nor their respective managers assume any obligation to update or revise any forward-looking statement to reflect new events or circumstances. Actual results may differ materially from any forward-looking statement. Historical results and trends should not be taken as indicative of future operations. The Fund is not guaranteed, its value changes frequently and past performance may not be repeated. Unless otherwise indicated and except for returns for period less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data take into account distributions or dividends paid to unit holders but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.