Ivy Through The Cycles

Paul Musson and Matt Moody from the Mackenzie Ivy team were in Ottawa in early January to refresh advisors’ knowledge of how the Ivy investment discipline works, and they provided me with a small booklet that summarizes how the Ivy Foreign Equity Fund has done over four market cycles since the fund started in 1992.  The essence of the analysis is that while Ivy has not always kept up with the competition when the market is rising fast, their results have been excellent during times when the market declines.  The net result is modest long term out-performance, and this is good, but their real value-added result is lower fluctuations.

In fact, over its lifetime, the Ivy Foreign Equity Fund has had the lowest volatility in the global equity fund category.  This proves to be very important in the success of my clients.  Investors tend to make emotional decisions at high and low points in the market cycles, and investing in a fund that smooths out the peaks and valleys leads to less tendency to want to change investments and hence a better long term result.

If you are interested in reading the booklet, which requires only a modest level of technical ability to read well, you can access it by clicking this link or pasting the following into your address bar.

http://www.mackenzieinvestments.com/eprise/main/MF/DocLib/Public/IV1580.pdf