Educators Financial Group Mutual Funds and the TSX returns: why the difference?
When reviewing the 2016 performance of their Educators Financial Group Mutual Funds and the TSX, investors may be wondering about the difference between the returns.
While your Educators Financial Advisor is always available to answer any questions in detail, here is a summary of the returns and the basic reasons behind them.
TSX and Educators Mutual Funds 2016 Performance |
2016 Increase |
| TSX | 21.1% |
| TSX 60 | 21.4% |
| Educators Dividend Fund | 12.2% |
| Educators Monthly Income Fund | 8.44% |
| Educators Growth Fund | 14.4% |
| Educators North American Diversified Fund | 8.7% |
The difference reflects the amount of exposure in the materials and energy sectors.
At Educators, our highly trained, experienced Portfolio Managers focus on high quality companies with strong fundamentals. In 2016, the best-performing securities tended to be lower quality securities. A significant rally in gold and silver in the first half of the year, and an increase in oil from $37 to $54, accounted for a disproportionate 76.7% or 16.1% of the growth in the TSX. Our equity funds generally invest in less volatile securities than the more volatile materials and energy sectors.
The good news? The reduced exposure to the materials and energy sectors in our funds means that our Mutual Funds may not decrease as much as the TSX when there’s a downturn. Our funds are designed to provide consistent gains in up markets and less of a loss in weaker markets – ultimately providing returns to meet your investment objectives for years to come.
Educators’ investors who hold Educators Mutual Funds do so as a result of an in-depth discussion with their financial advisor about their investment needs, an understanding of how much risk an investor is willing to take on and the time horizon (length of time before the invested funds are planned to be needed). The investments they hold within their portfolio are balanced to meet their goals.
Our investment clients benefit from the Educators advantage: the highest standards, lowest fees and expert financial advice that’s tailored to you. We’re here to answer all your investment questions. Speak to your Financial Advisor today.
Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
