Capital preservation is key for investors who draw regular income from their investments. Learn how the Mackenzie Ivy Global Balanced Fund/Class are uniquely positioned to protect on the downside.
The Mackenzie Ivy Team has introduced more structural downside protection for fixed-income portions of their balanced portfolios to maintain growth potential.
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.
Over the first quarter of 2017, the global market finished strong, continuing the trend that started last fall. Far East markets outperformed the US and European markets; this is the opposite of what was observed in Q4, when Far East markets lagged their global counterparts. European markets also posted strong performance. US markets achieved new all-time highs. The U.S. Federal Reserve raised the federal funds rate again in March 2017, after the hike in December 2016, citing higher home prices, low unemployment rate and improving economic confidence.
The fourth quarter was an interesting end to an eventful year in U.S. equity markets. A strong finish after a weak start. Total corporate earnings were roughly flat year over year as local currency growth for global corporations was offset by currency and energy and commodity exposed companies across many different sectors saw earnings deteriorate while domestic companies without commodity exposure experienced steady growth.
The U.S. market was led by segments of the Technology space and the Materials sector, as concerns over valuations have abated in Technology and the direction of change in commodity markets turned positive. We had little exposure to either of these quarterly market tailwinds, and so the U.S. holdings underperformed.