By Scott Ronalds
We’ve updated our annual assessment of our funds’ performance that uses the framework laid out in our paper, How is your portfolio doing?
The report, titled How are Steadyhanders doing?, analyzes the Steadyhand Balanced Income Portfolio, which is a hypothetical model portfolio used by a number of our clients. We’ve chosen this portfolio because it encompasses all of our long-term funds and is a good representation of the firm’s overall asset base (the Portfolio has an asset mix of 50% stocks, 50% fixed income). It’s our intention to use the Founders Fund as the basis for future assessments, but at this stage the fund has too short a track record to make the analysis meaningful (the Founders Fund was launched in 2012).
Our Balanced Income Portfolio has returned 6% per year over the last eight years (we launched our funds in 2007). A comparable low-cost indexed portfolio would have returned 5% per year. In 2015, the portfolio grew by a more modest 2.4%. The mix of government, corporate and high yield bonds, and small, medium and large companies across different industries and regions has served the portfolio well over time.
Both reports can be accessed by clicking the above links or visiting our website’s Library.
Management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns.