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See the most recent article written about us. Click here!
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By clicking on a portfolio in the chart above, you will be provided with a detailed analysis of each of our portfolios. The analysis includes portfolio holdings (which is broken down by geography, asset class and sector weighting) and performance figures for each fund within our portfolios as well as a weighted total of the portfolio's performance.
It is important to note that while the information contained within the reports is accurate, the performance figures only reflect the funds that are currently represented within our portfolios. For the actual performance figures of our portfolios, which include all changes made since inception, please refer to the chart below.
YTD |
1 Month |
6 Months |
1 Year |
3 Year |
5 Year |
10 Year |
Since Inception |
|
| Conservative | 2.16% |
0.76% |
2.74% |
-0.75% |
3.76% |
N/A |
N/A |
5.18% |
| Balanced | -1.25% |
0.34% |
-0.72% |
-5.83% |
4.82% |
N/A |
N/A |
6.68% |
| Income Growth | -2.05% |
0.51% |
-1.71% |
-6.97% |
6.60% |
N/A |
N/A |
7.80% |
| Moderate Growth | -1.05% |
0.74% |
-0.72% |
-6.79% |
8.08% |
N/A |
N/A |
8.99% |
| Growth | 0.56% |
1.53% |
0.48% |
-4.62% |
10.96% |
N/A |
N/A |
11.35% |
| Aggressive Growth | -1.24% |
1.51% |
1.31% |
-2.41% |
14.04% |
N/A |
N/A |
13.61% |
*All numbers are provided from Fundata Canada as of May 31, 2008.
Inception date: October 1, 2004.
What make portfolio4less's portfolio better than the competition?
LESS RISK...MORE REWARD...
So YOU can sleep soundly and retire comfortably!
First a look at how the competition's mutual fund portfolio stacks up …
Typically, a mutual fund portfolio will be built by creating an asset allocation model for the desired investment portfolio. The simple asset allocation for a balanced mutual fund portfolio may be targeted as 50% equity, 40% bond and 10% cash. To diversify, the 50% equities will then be broken down further into Canadian Large cap, International Equity and the rest to Canadian small cap.
Next, managers are selected -- typically, based on past performance, or a belief that they will be a top performer going forward. Although there are over 4,000 managers available in Canada, in most cases choices will be made from either a short list of favourites or from a company’s own proprietary funds. Not necessarily in your best interest! 
Instead, mandates are filled with available managers who fit the chosen asset class based on past performance. The decision is made with little consideration of how the different styles in the mutual fund portfolio compliment each other, which can result in much more risk than was originally intended. Often, the increase in risk can be attributed to duplication of management styles or style-drift in an inconsistent manager. The actual percentage allocated to each manager is determined by consulting the asset allocation model. “Riskier” investments are generally allocated a smaller percentage, while “less risky” investments a larger percentage. No attempt is made to reallocate investment percentages to determine the most efficient mix based on current managers.
Finally, after a portfolio is created, the only part reviewed regularly is manager performance. Replacements may be made from time to time if performance falls off (not always possible when companies use only their own proprietary funds). Beyond monitoring managers, few portfolios actually rebalance on a regular basis and, with that, only at certain times of the year. Clearly not in your best interest!
| portfolio4less.com portfolio construction is different on just about every level... |
Beginning with Manager Selection and Optimization of Holdings. To arrive at our list of chosen managers, we start with the widest possible range of fund managers in Canada and slowly remove those who show unacceptable levels of style-drift and risk. Then we look to performance. Once the managers have been selected, we determine how much of each portfolio is allocated to each manager. As mentioned earlier, diversification is the cornerstone of investment management. But very few advisors realize that portfolio performance can be pushed a little further by optimizing the weight of individual holdings. By comparing and measuring the individual risk, return and expected future return of each security, we can search a multi-dimensional math terrain for the ideal mix of risk and return that ultimately dictates the asset allocation of a portfolio. Unlike most other advisors, we don't start with a predetermined breakdown of asset classes. Instead, we run every possible combination of weighting within a portfolio. As a result, we are able to create tens of thousands of portfolios in mere seconds . By changing the weighting of an individual holding rather than changing the asset class, we can dramatically decrease the risk and increase the return until the proper optimization is achieved. Are you beginning to see the difference? Portfolio4less.com's Approach to Rebalancing and Monitoring.
After running through historical data from 1973 through the second quarter of 1999, Mr. Smith determined the best way to rebalance an optimized portfolio is to rebalance by deviation from weights, rather than quarterly or yearly. The Canadian Securities Institute concluded that rebalancing enhances returns in a weak market period through the purchase of the weak asset class at reduced price levels. They further concluded that the ideal approach is to rebalance based on deviation from weights rather than rebalancing temporally.
On top of regular rebalancing with your permission, portfolio4less monitors on a continuous basis for manager performance, and for geographic and asset allocation. Since we source such a huge list of fund companies as our base to choose from, this is quite an onerous task. But we feel that it is necessary to deliver the best performing mutual fund portfolios in the nation. We are aware that talk and statistics sound great, but the proof is in the actual performance of our portfolios. We are not economists who try and forecast the next "hot" sector to invest in. Our mutual fund portfolios are CFA designed, and backed by the fundamentals of Modern Portfolio Theory and Dynamic Asset Allocation. But, don't take our word for it - see for yourself how we stack up against the competition. Even if your advisor has designed a portfolio specifically for you, feel free to compare your portfolio. We are that confident you will be convinced: Portfolio4less.com is the smart choice . the best choice . the only choice for your investments. Please note portfolio4less.com is not a mutual fund manager. We design our portfolios using the fund companies listed below. Click on the link below to be taken to the fund company website. |
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ng mutual funds that are trading unusually low, we are able to reduce risk and increase returns even further than portfolio optimization alone. This is called rebalancing. Rebalancing is passive timing, which naturally buys low and sells high. We rebalance with your permission based on market fluctuations, not based on a date in time or emotion. In a study by Michael D. Smith CFA, Research director of Hewitt Investment Group to determine what style of rebalancing an optimized portfolio added the most value, the following conclusions were reached: 
A buy and hold strategy clearly results in a higher risk mutual fund portfolio with an average equity exposure well above target 
