Source and Description of Data
Portfolio Construction: Risk and Returns

Canada Bond Universe = FTSE TMX Canada Bond Universe Index (Source:
TSX = S&P / TSX Index of largest Canadian public companies (Source:
S&P 500 = S&P 500 Index of 500 largest US growth companies (Source:
MSCI EAFE MSCI EAFE Index of largest non-North-American companies (Source:
Canadian Bonds = Mackenzie Canadian Bond portfolio (Source:
Global Bonds = Mackenzie Global Bond Portfolio (Source:
Canadian Large Value = Mackenzie Cundill Canadian portfolio (Source:
Global Large Value Stocks = Mackenzie Ivy Foreign Equity portfolio (Source:
Medium Cap US Growth = Mackenzie US Mid Cap Growth portfolio (Source:


For the purposes of this study, each portfolio, whether index or asset allocation, is rebalanced to target allocations annually. The information is provided for education purposes only and it should not be considered as investment advice. Actual client performance will vary based on asset allocation; the timing of withdrawals, contributions and rebalancing; fund holdings; and advisory and investment management fees.

Indices cannot be purchased, only exchange traded funds (ETFs) that mimic their respective index and they do so for an annual management fee of 0.3% to 0.4%. For the purposes of this study, the returns of each index were reduced by 0.3% to account for the management fee.

Indices do not account for the fee charged by financial advisors. Recall that they are the individuals who make sure you are on track with your financial plan and keep your fear and greed in check during financial turmoil. Consequently, and for the purposes of this study, the returns of each index were reduced by an additional 1% to account for the financial advisory fee.

Mackenzie Financial is one of the largest investment firms in Canada and we use a small subset of their portfolio offerings extensively, but certainly not exclusively, in our clients' portfolios. We tend to keep all holdings for each client portfolio with one investment company, making the rebalancing process much easier and less time consuming. We handpick each portfolio after extensive research of the manager's investment philosophy and demonstrated ability to outperform on a risk adjusted basis. Similar portfolios have been created with other well researched, large investment companies and we recommend them to our clients on a regular basis.

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