For April 2014, our returns averaged 0.29%* underperforming the S&P 500, which returned 0.74% for the month. 2014 YTD through to the end of April our returns averaged 5.80%* outperforming the S&P 500’s return of 2.55%.
Diversification and REITs helped performance
International diversification was particularly helpful in April, emerging market funds performance was between 0.78% and 0.98% for the month depending on the specific fund. Developed markets outside the US put in a similarly strong performance. REITs though a smaller part of the portfolio had a very strong month rising between 2.26% and 3.74%, again depending on the specific investment.
Small cap lagged, fixed income offered stable returns
Small cap stocks in the US lagged significantly this month falling between 2.44% and 2.78% in April depending on the fund. Though we reduced our small cap exposure in March, this decline offset the gains we saw in other asset classes. Fixed income provided similar returns to US stocks for the month as yields declined slightly.*The FutureAdvisor performance calculated is net of fees but before trading costs. Differences in account size, age of clients, risk tolerance, timing of transactions and market conditions may lead to different results. Past performance is not indicative of future results. Photo – Chris Ford