A diversified portfolio provides clear expectations
The perils of chasing investment performanceHistory shows that the relative performance of various asset categories changes from year to year. More importantly, these changes are not predictable. That’s why an investor’s biggest allies are staying invested and diversifying according to their comfort level with market volatility.
The chart shows that, in many instances, the top-performing asset category changes every year. As well, asset categories that are among the best one year could be among the worst the next.
By diversifying across different asset classes and investment styles, investors can offset risk and increase portfolio returns by balancing exposure in both positive and negative market environments.
Insurance products and services distributed through I.G. Insurance Services Inc. Insurance license sponsored by The Great-West Life Assurance Company. Written and published by Investors Group as a general source of infor-mation only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from an Investors Group Consultant. Trademarks, including Investors Group, are owned by IGM Financial Inc. and licensed to its subsidiary corporations.© Investors Group Inc. 2014 MP1055 (01/2014)
RICHARD SHEPPARD CFP
Senior Financial ConsultantInvestors Group Financial Services Inc.
Tel: (403) 226-5531 [email protected]
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emerging markets
cdn large cap
europeanequity
u.s. small cap
canadian bond
u.s. large cap
2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3
foreign equity
canadian small cap
emerging markets
emerging markets
emerging markets
emerging markets
emerging markets
emerging markets
emerging markets
u.s. small cap
u.s. small cap
u.s. small cap
u.s. small cap
u.s. small cap
u.s. small cap
u.s. small cap
u.s. small cap
canadian bond
canadian bond
canadian bond
canadian bond
canadian bond
canadian bond
canadian bond
foreign equity
foreign equity
foreign equity
foreign equity
foreign equity
foreign equity
foreign equity
u.s. small cap
u.s. large cap
u.s. large cap
u.s. large cap
u.s. large cap
u.s. large cap
u.s. large cap
canadian small cap
canadian small cap
canadian small cap
canadian small cap
canadian small cap
canadian small cap
u.s. large cap
u.s. large cap
emerging markets
canadian bond
foreign equity
cdn large cap
cdn large cap
cdn large cap
cdn large cap
cdn large cap
cdn large cap
canadian small cap
europeanequity
europeanequity
europeanequity
europeanequity
europeanequity
europeanequity
europeanequity
europeanequity
europeanequity
global equity
global bond
global bond
global bond
global bond
global bond
global bond
global bond
global bond
global bond
global bond
emerging markets
canadian small cap
canadian small cap
canadian small cap
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
moderate portfolio
global equity
global equity
global equity
global equity
global equity
global equity
global equity
global equity
global equity
cdn large cap
cdn large cap
cdn large cap
u.s. large cap
Since investors cannot invest directly in an index without incurring fees and expenses, the performance of an actual portfolio would be less than shown because fees and expenses are not reflected in the asset class returns or in any periodic rebalancing the portfolio back to its prescribed weightings. All performance numbers are shown on a pre-tax basis.
C a n a d i a n l a R g e C a p
C a n a d i a nb o n d
C a n a d i a n S m a l l C a p
F o R e i g n e q u i T y
m o d e R aT e p o R T F o l i o
u. S . S m a l l C a p
g l o b a l e q u i T y
e m e R g i n g m a R k e T S
g l o b a l b o n d S
e u R o p e a n e q u i T y
S&p/TSX CompoSiTe ToTal ReTuRn
neSbiTT buRnS Small Cap - weighTed ToTal ReTuRn
deX univeRSe ToTal ReTuRn
mSCi euRope (neT) $Cdn
mSCi eaFe (neT) $Cdn
S&p 500 ToTal ReTuRn $Cdn
RuSSell 2000 ToTal $Cdn
mSCi woRld (neT) $Cdn
mSCi emg. mkTS. (gRoSS) $Cdn
CiTigRoup woRld gov’T bond $
The model Portfolio is comprised of 25% S&P/TSX Composite TR, 5% Nesbitt Burns Small Cap - Weighted TR, 40%Dex Universe TR, 10% MSCI Europe (Net) $Cdn, 20% S&P 500 Total Return $Cdn. The annual model portfolio performance assumes that an initial investment is made according to these weightings at the beginning of each year without rebalancing during the year. The indices used in this illustration represent the following asset classes.
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