The Managed Yield (M.Y.) Private Portfolio was launched on April 4th 2012. This was the first of three portfolios that have been launched by the Roberts Nash Advisory Group. It has an objective of providing investors with stable, tax efficient gains and focuses on dividend paying securities. The fund is designed to provide long term returns in-line with a growth benchmark (70% equity) while maintaining a reduced level of volatility. In 2016 the mandate provided investors with a solid return of 17.7% (gross).
Annualized Returns Annual Returns
3mth 6.0% 2012 4.5%
6mth 13.2% 2013 17.4%
1yr 17.7% 2014 11.0%
3yr 10.5% 2015 3.2%
Since Inception 11.2% 2016 17.7%
All figures are reported before fees.
When the portfolio was first launched many clients (rightly) asked was “if you underperform will you be able to fire yourselves”. Our answer was always yes - this fund gets compared with other mandates in the Canadian investment universe and evaluated against their performance. The returns are reviewed by our compliance department each month prior to any data publication. Looking at the chart above, our 1 year performance would rank the fund in the top 4%[i] and the 3 year annualized return in the top 5%[ii] of all balanced mandates in the Canadian investment universe. Exceptional results.
2016 was not an easy year for investors. It started with a 10% correction in North American equity markets and was fraught with major world events. Many of which had the power to drive equities sharply higher or lower (Brexit; US Election…). The Managed Yield Private Portfolio lost 1.6% in January and February, but regained it all with a 4.7% return in March and rising 7 of the remaining 9 months.
Looking into 2017 we will continue to manage this fund with an eye on high, sustainable income flow and stable returns. We see greater opportunity in equity than bonds and have moved to a slight overweight in our asset allocation. We remain very conscious of the possibility that interest rates will rise and are positioning accordingly. It is our hope that the coming year will be every bit as exceptional as the last.
The Managed Yield Private Portfolio is not designed for every investor. Risk tolerance and investment timeline are important considerations when determining its appropriateness. Minimum investment levels apply. Reporting on all three mandates managed by the Roberts Nash Advisory Group are published monthly and available to all clients.
** I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial **