Although NorthStar Fund has a good long-term track record, we are disappointed in the fund’s recent performance and some clients have elected to reduce or eliminate their positions in it. We realize that when a correction occurs it will be a good holding to have but while Northstar’s manager Dan Dupont talks about being infinitely patient on price, we understand that clients cannot be expected to be infinitely patient on returns.
By comparison, the Dynamic Global Dividend Fund has been a brilliant performer. David Fingold who manages that fund managed to have returns in 2018 of +6.14% when many other funds were down as a result of the dismal fourth quarter.
Year to date that fund is up +14.15% as well.
We had the privilege of speaking with David at a Dynamic conference earlier this year and were impressed with his take on the market and economic outlook. Like us, he is still bullish on the US and maintains a US bias in his portfolios. We continue to lean towards global holdings with said US bias, or otherwise manufacturing one. The great thing about global mandates is that the managers can take advantage of good buying opportunities that arise outside of North America as well.
We also attended a Fidelity conference this Spring and were pleased to hear about a new fund they have launched that is called Women’s Leaders Fund. The manager of that fund is a very articulate and passionate woman who proposed creating the fund to buy into companies that have females in leadership roles and good policies for equal pay and opportunity as well a penchant for ethical choices. She cited Etsy as one of the holdings which is indeed a very strong growing company that was founded by a woman and that is a holding in a number of our other mutual funds. We have been studying the Vanguard funds over the last year. These funds are only available to nominee fee-based accounts and have very low fees.
The Vanguard Group is structured like a coop, so management is not caught in a conflict between their duty to shareholders and the best interest of clients. Furthermore, the fees reflect the performance so if the fund outperforms it’s benchmark, the fee is slightly more but if the fund does poorly the fee drops.
Even at the highest-level Vanguard’s fees are around 30% lower than their peers. When you buy into the Vanguard funds you effectively also own a small share in the company, like any co-op.
Calgary based Mawer Investments is another example of a premium fund company which is only available in nominee fee-based accounts, Their fees are higher than those of Vanguard’s but they have also produced better returns in the last year. For more information please drop us an email or call in and we can explain is greater detail these options.
You can set up your Fundex account as a payee in your online banking for deposits you wish to make using the account number you wish the funds to go to. We get a notification of the deposit and will follow up with you to discuss how to allocate the funds. Contact us if you’d like help setting this up, it’s a very handy way to make TFSA and RRSP contributions.
On A Personal Note
Hans and Anne Marie have been allocating some time for fitness activities with a view to trimming down and being healthier. Hans has been a positive influence by riding his bike to work so Anne Marie is following his good example by buying a bike with a view to doing the same. Both are doing gym workouts. Hans continues to work with the Big Brothers Association and is now on the board. He is also a board member of the Young Professionals of Nanaimo. Anne Marie has signed up for another term on the board of the Quadra Island Seniors Housing and has recently joined the Responsible Investing Association.
Anne Marie will be spending more time at the Quadra office during the summer months but can be available at either location by appointment. Please feel free to call the Quadra number if she is not available at the Nanaimo number as there is no cell service at the Quadra location. Hans will be manning the Nanaimo office. No major trips for either are scheduled for the next year or so. Both check emails very regularly.
It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.
An investment in knowledge pays the best interest
The Stock Market is designed to transfer money from the Active to the Patient.
DISCLAIMER: This newsletter contains general information only and is intended for informational and educational purposes provided to the clients of Anne Marie Dryden & Hans Bischoff. While information contained in this newsletter is believed to be reliable and accurate at the time of printing, Anne Marie Dryden & Hans Bischoff do not guarantee, represent or warrant that the information contained in this newsletter is accurate, complete, reliable, verified or error-free. This newsletter should not be taken or relied upon as providing legal, accounting or tax advice. You should obtain your own personal and independent professional advice, from your lawyer and/or accountant, to take into account your particular circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with ETF & mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all 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. ETF’s & Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. The views expressed in this message are not necessarily the views of Investia Financial. Exchange traded funds, mutual funds and exempt market products are offered through Investia Financial Services Inc.