Performance of Balanced PortfoliosOur typical client is an individual with an investment objective that includes long-term capital growth and a moderate tolerance to risk or volatility. Since 1990, our typical client has a portfolio composed on average of 50% fixed income securities and 50% in equity. Some 60% of our clients have such a profile. We have been calculating the typical return of our typical client since 1998. These results are presented below and are compared with those obtained by the best investment fund managers in Canada for each year. A $1,000 investment made by our typical client on January 1, 1998 would be worth $2,301 on December 31,2010, an average annual after fees return of 7.25%. Equities Canada Under the Equities Canada- 1st Quartile / Median heading, we indicate the yearly performance since 1990 of the first quartile (the best 25%) and of the median (best 50%) of the best Canadian equities portfolio managers. The managers are usually different from one year to another, but the figures represent only the best for each year. For example, the return of the best 25% of Canadian equities portfolio managers in 1998 was 1.9% (median: -2.7%) while it had been 31.9% (median: 28.3%) in 1999. The average annual return of the Canadian equities of our typical client over the 1998-2010 period was 13.90% after fees. It compares positively with the annual average of the best yearly managers which was 11.60% (median of 9.40%). Equities ex-Canada Under the Equities ex-Canada- 1st Quartile / Median heading, we indicate the yearly performance since 1990 of the first quartile (the best 25%) and of the median (best 50%) of the best ex-Canadian equities portfolio managers. The managers are usually different from one year to another, but the figures represent only the best for each year. For example, the return of the best 25% of ex-Canada equities portfolio managers in 1998 was 24.6% (median: 17.2%) while it had been 34.5% (median: 20.9%) in 1999. The average annual return of the ex-Canada equities of our typical client over the 1998-2010 period was 9.31% after fees. It compares positively with the annual average of the best yearly managers which was 7.95% (median of 2.31%).
In short, our typical client achieved a competitive performance in every type of environment. We believe that this was made possible thanks to the dynamism of our management, the effectiveness of our geographic distribution and to the selection of Canadian stocks that generally outperform the overall market (see the Performance of Canadian Stocks section). |