Asset Allocation – May 2017
- S&P 500 advanced 1.4% in April bringing the YTD performance to 8.4%.
- Emerging markets equities continue to be the best performing asset class in 2017 up 17.3% while commodities are the only asset class in the red down -5.1%.
- Technology sector is the top performer in the S&P 500 up an impressive 20.5% while energy and telecom are the only two sectors in the red down -12.5% and -8.1% respectively.
- The TSX 60 is up 1.8% with the Technology sector posting the top sector performance up 14.3% .
- Defensive positioning is outperforming cyclicality. Defensive sectors are outperforming more cyclical sectors, Large cap is beating small cap, growth over value and low volatility over high beta.
- Momentum as a factor, is also up 17.7% YTD thanks to its large allocation to US Technology (>40%).
- Russia is in a lonely position as the only country in the red this year among the MSCI Country ETFs we follow.
- Bitcoin is by far the best performing “currency” up over 140% YTD and the US dollar is the worst currency we track down -5.2% and the Canadian dollar down -.5%.
- Bloomberg Precious Metals Index is up 9.7% while the Energy index is down -17%. Of note in commodities was orange juice futures down 16% in May.
Asset Class YTD Performance
S&P 500 Sector YTD Performance
Emerging Market Sector Performance YTD
MSCI Country YTD Performance
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.