Ivy Quarterly Review

Highlights from the Fourth Quarter Edition


A resource for both advisors and investors, the Ivy Quarterly gives perspective on the portfolios, investment philosophy and holdings in a comprehensive format. The Ivy Team discusses world markets and where they are finding value today.

Ivy Quarterly map

European markets ended 2016 on a strong note, following global markets’ higher performance in November. Ivy’s European stocks lagged the index, in part due to the absence of European banks in the portfolio. While there are some high quality banks in Europe, it is our belief that the environment in which they operate will remain challenging.

The share prices of some of Ivy’s Japanese holdings benefitted significantly from a weaker Yen in Q4, but many of our non-Japanese holdings, who report their earnings in USD, saw their share prices lag. We have seen opportunities arise in the Hong Kong market and have increased positions in our Hong Kong-listed holdings as a result.

After a weak start to the year, U.S. equity markets finished 2016 strong. We saw a fair amount of movement within our U.S. holdings, but no new holdings. Our focus on high quality companies, our long-term outlook and focus on capital preservation and growth mean it is tough to find new investments. In any event, we continue to manage the portfolio one company at a time. 

The most impactful event on the markets in the fourth quarter was the Republican sweep in the U.S. election. We benefited from the post-U.S. election rally in cyclicals, as we had increased our exposure to these types of companies earlier in the year. Looking to 2017, we will continue to be more heavily weighted towards cyclical, a sector that is driven by more attractive valuations. 

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This document includes forward-looking information that is based on forecasts of future events as of December 31, 2016. Mackenzie Financial Corporation will not necessarily update the information to reflect changes after that date. Forward-looking statements are not guarantees of future performance and risks and uncertainties often cause actual results to differ materially from forward-looking information or expectations. Some of these risks are changes to or volatility in the economy, politics, securities markets, interest rates, currency exchange rates, business competition, capital markets, technology, laws, or when catastrophic events occur. Do not place undue reliance on forward-looking information.  In addition, any statement about companies is not an endorsement or recommendation to buy or sell any security.