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Results
Results
Monthly Performance Report / August 2019
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INVESTMENT STRATEGY AND OBJECTIVES
Outcome Wealth Management manages portfolios comprised of large, liquid ETFs. Our strategies are designed to provide efficient global diversification, offer better protection in bear markets, and deliver higher long-term returns.
MONTHLY RESULTS
GTAA Growth (USD-based accounts)
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | -- | -- | -- | -- | -- | -- | -- | 1.3% | 0.9% | 1.1% | 0.5% | 1.4% | 5.4% |
| 2018 | 2% | -3.4% | -0.2% | -0.1% | 0.4% | 0.6% | 1% | 0.7% | -0.4% | -2% | -0.1% | 0.9% | -0.8% |
| 2019 | 1.1% | 0.3% | 1.6% | 1.5% | -2.9% | 1.3% | -0.2% | 2.9% | -- | -- | -- | -- | 5.6% |
GTAA Growth (CAD-based accounts)
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | -- | -- | -- | -- | -- | -- | -- | 0.1% | 0.5% | 1.6% | 0.5% | 1.3% | 7.7% |
| 2018 | 1.3% | -2.7% | -0.3% | -0.2% | 0.6% | 0.8% | 0.9% | 0.9% | -1.1% | -1.7% | 0.2% | 1.6% | 0.2% |
| 2019 | 0% | 0.7% | 1.4% | 1.5% | -2.9% | 0.7% | -0.2% | 3.7% | -- | -- | -- | -- | 4.9% |
PORTFOLIO ALLOCATION
In August, the GTAA strategy was defensively positioned with only a 10% exposure to stocks, which was concentrated in the S&P 500 Index. The remaining 40% of its “risk-on” positions were equally spread across four rate-sensitive markets (U.S. REITs, U.S. preferred shares, U.S. high yield bonds and emerging market sovereign bonds). The remaining 50% weight of the portfolio was allocated to “risk-off” assets, and was equally spread across long-term Treasuries and short-term U.S. investment grade bonds.
Despite what proved to be a volatile and challenging month in markets, four of our five 10% growth-sensitive exposures rose during the month. U.S. stocks fell 1.67%, while U.S. REITs rose 3.75%, emerging market sovereign bonds were up 1.55%, U.S. preferred shares advanced 0.6%, and U.S. high yield bonds rose 0.69%.
With respect to our safe haven positions, the portfolio received a significant boost from our 25% allocation to long-term Treasuries, which rose an astounding 11.03%. This was augmented by our 25% position in short-term U.S. investment-grade corporate bonds, which rose 1.11%.
For September, our portfolio remains cautious in terms of equity exposure, with 10% positions in both U.S. and Canadian stocks. We are also maintaining our bias towards rate-sensitive assets, with five 10% exposures to U.S. REITs, International REITs, emerging market sovereign bonds, U.S. preferred shares, and U.S. high yield bonds. The remaining 30% of the portfolio is invested in “risk-off” markets and is equally spread across long-term Treasuries and short-term U.S. investment grade bonds.
