Like most of the other funds under the Power banner, Dynamic Power American Growth Fund is not for the faint of heart. Manager Noah Blackstein uses a very concentrated, growth approach in managing this fund. Because of this, it tends to be considerably more volatile than other U.S. equity funds, with a standard deviation that is nearly two times the S&P 500 Composite Index. Still, when it’s good, it’s very, very good, as its one-year annualized return at March 31 of 30.7% showed. Here’s what makes this volatile fund work, complete with gravity-defying acceleration and heart-stopping plunges.
With the economic recovery underway (albeit shakily) south of the border, Canadian investors have been seeing some impressive returns from their U.S. equity fund holdings lately, and particularly from small/medium-cap equities. Part of that is a result of U.S. dollar strength. But for the Fundata FundGrade® A-ratedFidelity Small Cap America Fund, now in its 21st year, it comes down to impressive research bench strength that has delivered consistent first-quartile performance.
When it comes to monetary policy, Canada and the U.S. usually move in the same direction. But not this year. While the Bank of Canada kept its rate unchanged in its April announcement, the U.S. Federal Reserve Board has signalled that its key rate will start moving up, perhaps as early as June. The federal funds rate has effectively been at zero since the crash of 2008-09, so this is a big deal.
* Market wrap: April is the flattest month
* Purpose launches international ETFs
* April is the flattest month. Stock markets generally failed to gain traction in April, as U.S. economic growth stalled in the first quarter. In a statement after its scheduled April meeting last week, the U.S. Federal Reserve Board cited “transitory factors” for economic weakness, and expected the economy to continue growing at a moderate pace in coming months. Stocks markets were generally flat in April, except for Toronto’sS&P/TSX Composite Index, advancing 2.2%, as the price of crude oil surged 25.6% in the month. In contrast, the U.S. blue-chip S&P 500 Composite Index edged up only 0.9%.
Q – I recently came into some money through an inheritance, and I’ve been looking at mutual funds, because I’ve been told these offer the most investment diversification. But I’m finding the assortment of fund series – everything from A to I and beyond – baffling, and I’m totally flummoxed by the hodge-podge of sales charges and commissions. Can you sort this out for me? – Stan B., Belleville, Ontario