Noah Blackstein, Vice-President and Portfolio Manager at 1832 Asset Management LP, the
fund holds a very active, concentrated portfolio of between 20 and 30
companies from around the world that he believes to have the best growth
prospects, strong earnings momentum, and a history of upside earnings
Over his 20-year tenure with Dynamic, Mr. Blackstein has built a reputation
as one of the premier U.S. and global growth fund managers. Over the
long-term, he has indeed been very successful with his strategy for this
As of June 30, the fund had posted a 5-year average annual compounded rate
of return of 20.3%, nearly doubling the 10.6% rise in the MSCI World Index.
Recent numbers have also been strong, with the fund gaining more than 27%
in the 12 months ending June 30.
However, running such a concentrated, growth-focused portfolio means a
significant level of volatility over the year. Average 3-year standard
deviation at June 30 was 17.8%, giving it a Fundata Volatility Ranking of
10/10. When the fund wins, it wins big, but when it loses, it tends to lose
big. In the past five years, portfolio volatility has been nearly double
the broader market. Further, if we look at the market crash of 2008, the
fund lost more than 47%, while the index was down 25% in Canadian dollar
The fund’s portfolio is concentrated not only in number of holdings, but
also in sectors. At the end of June, it held 23 names, and nearly
two-thirds were invested in information technology, with the balance in the
healthcare and consumer discretionary sectors.
Top holdings at the end of June included
Baozun Inc. (NASDAQ: BZUN), Samsung Biologics Co. Ltd. (KS: 207940),
Weibo Corp. (NASDAQ: WB),
ServiceNow Inc. (NYSE: NOW), and
Vertex Pharmaceuticals Inc. (NASDAQ: VRTX).
The portfolio turnover is high as Mr. Blackstein boldly goes where the
growth is. In the past five years, turnover has averaged nearly 200%.
Over the long-term, however, this fund has the potential to outpace its
peers. But be warned: The ride will be very bumpy. If you have the stomach
to stick with this high-conviction offering, you have the potential for
outsized returns over time. This is more a fund you’ll want to trade rather
than buy and hold, taking profits after a big run to protect your capital.
Dynamic Power Global Growth Class
Large Cap Growth
Noah Blackstein since January 2001
DYN014 (Front-end load)
Dave Paterson, CFA, is the Director of Research, Investment Funds for
D.A. Paterson & Associates Inc., a consulting firm specializing in providing research and due
diligence on a variety of investment products. He is also the publisher
Dave Paterson’s Top Funds Report,
offering regular commentary and in-depth analysis of Canada’s top
investment funds. He uses a unique analytical approach to identify
funds with strong, risk-adjusted returns, and regularly publishes his
insights and analyses in Fund Library.
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amount of your investment in the fund will be returned to you. Fund values
change frequently and past performance may not be repeated. No guarantee of
performance is made or implied. This article is for information purposes
only and is not intended as personalized investment advice.