Results

year
2019
month
NOVEMBER

Monthly Performance Report / November 2019

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INVESTMENT STRATEGY AND OBJECTIVES

The Outcome Wealth Management Global Tactical Asset Allocation strategy manages portfolios comprised of large, liquid ETFs. The strategy is designed to provide efficient global diversification, offer better protection in bear markets, and deliver higher long-term returns.

MONTHLY RESULTS

GTAA Growth (CAD-based accounts)

JanFebMarAprMayJunJulAugSepOctNovDecYTD
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% 0.4% 0.6% 0.7% -- 6.7%

GTAA Growth (USD-based accounts)

JanFebMarAprMayJunJulAugSepOctNovDecYTD
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% 0.6% 1.1% 0.7% -- 8.2%
PORTFOLIO ALLOCATION

In November, the GTAA strategy had a 50% exposure to stocks, which was equally divided between the U.S., Japan, Canada, Europe and emerging markets. North American markets were a clear leader, with U.S. and Canadian equities each gaining about 3.6%, while European and Japanese stocks rose approx. 1.3%. Emerging market equities were a notable laggard, declining 0.1% for the month.

The additional 40% of the portfolio which was allocated to “risk-on” positions was equally spread across U.S. REITs, international REITs, U.S. preferred shares and U.S. high yield bonds. These rate-sensitive positions fared less well than their pure equity counterparts, with U.S. and international REITs declining 1.3% and 1%, respectively, U.S. preferred shares falling 0.4%, and U.S. high yield bonds gaining 0.6%.

The remaining 10% of the portfolio was allocated to “risk-off” assets and had little effect on November’s performance. Specifically, our 5% position in long-term Treasuries declined 0.4%, and our 5% exposure to shortterm U.S. investment grade corporate bonds was flat.