Nexus North American Income Fund Performs

Topic: Investments

James E. Houston CIM, FCSI

March 16, 2014


Print & Share

Print

Nexus North American Income Fund Performs

We don’t normally trumpet our performance. But a recent survey shows that the Nexus North American Income Fund’s return numbers, over both the short and long term, have been rather, well, remarkable.

Morningstar Canada publishes a performance survey of various mutual funds based on their respective investment mandates. The Nexus North American Income Fund, which is a pooled fund offered only to Nexus clients (with whom we have a “managed account” relationship), is not included in the survey. Nevertheless, it is interesting to compare it to its closest Morningstar peer group – the “Canadian Core Fixed Income” category.

The Nexus Fund returns compare very favourably to the mutual fund returns in the survey for each of the 1-, 2-, 3-, 5- and 10-year periods ending December 31, 2013. Two things bear highlighting, however. First, not all of the mutual funds in the peer group have an allocation to “income-oriented equities” as the Nexus fund does. Second, the Nexus fund returns are presented before the deduction of investment management fees, while the peer group returns are presented after deducting such fees. (This is because Nexus’s fees are different for each client, being based on the value of the client’s family portfolio.) Even after accounting for these factors, the Nexus North American Income Fund performance stands out in comparison.

Nexus North American Income Fund Perfoms according to Morningstar

As Devin Crago points out in his post, “It’s tough to win the game from the sidelines”, but there are plenty of reasons why a quality fixed income component is an important part of a disciplined financial plan. Compared to the returns currently available from cash, GICs and many other fixed income alternatives, the Nexus North American Income Fund could provide an attractive alternative.

The Fund invests in a combination of money market securities, investment grade bonds and up to 20% of its assets in Canadian and U.S. income-generating equities. Distributions of interest and dividends from the fund are made monthly and, in most cases, re-invested in additional units of the fund.

If you would like to discuss how we might help you make the most of your sidelined assets, please don’t hesitate to contact us.

More Like This...

See another CRM2 blog post that may be of interest to you.

CRM2: The Nexus Approach to our CRM2 Reports

Topic:
CRM2
Excerpt:
With changing securities regulations coming into effect, investment firms are now required to provide individual investors with specific additional in

More Like This...

See another Foundations & Endowments blog post that may be of interest to you.

Donor Advised Funds: An Overview

Topic:
Foundations & Endowments
Excerpt:
As we approach the end of the calendar year, taxes and charitable giving inevitably surface as ”things to do” in peoples’ minds. Here, we’d like to

More Like This...

See another Human Interest blog post that may be of interest to you.

COVID: An Uneven – and Unequal – Recovery

Topic:
Human Interest
Excerpt:
Canadians have had enough of the lockdown. Here we are 18 months after you first heard of the then mysterious Wuhan flu. Today, but for any curve ball

More Like This...

See another Inside Nexus blog post that may be of interest to you.

Walking Through Time: The History of Nexus

Topic:
Inside Nexus
Excerpt:
Bob Topp’s death last month triggered my memory “replay” button, likely as it did for many of us, whether as a long-time Nexus client, employee, or

More Like This...

See another Investments blog post that may be of interest to you.

Q&A From Our Quarterly Investment Review

Topic:
Investments
Excerpt:
Your Nexus investment team participates in many meetings where a company’s CEO or CFO presents to a group of investors. These meetings often have a

More Like This...

See another Pearls of Wisdom blog post that may be of interest to you.

“Work, Work, Work, Work, Work, Work”

Topic:
Pearls of Wisdom
Excerpt:
This has been a busy year. I’ve had lots happening on the home front (a wedding!) and lots going on at the office (too long to list!) Managing work

More Like This...

See another Tax Planning blog post that may be of interest to you.

The Great Transition – A Tax Efficient Withdrawal Strategy

Topic:
Tax Planning
Excerpt:
The change from “saver” to “spender” is what I call the great retirement transition. Figuring out how to draw on your retirement savings to meet your

More Like This...

See another Wealth Planning blog post that may be of interest to you.

Living to 100… Is 100 the New 80?

Topic:
Wealth Planning
Excerpt:
It’s a common saying that there are two certainties in life, death and taxes. While we have a pretty good idea when we get taxed, which feels like all

On a Side Note…

See another CRM2 Nexus Notes Quarterly article that may be of interest to you.

No posts found.

On a Side Note…

See another Foundations & Endowments Nexus Notes Quarterly article that may be of interest to you.

Donor Advised Funds: An Overview

Topic:
Foundations & Endowments
Excerpt:
As we approach the end of the calendar year, taxes and charitable giving inevitably surface as ”things to do” in peoples’ minds. Here, we’d like to

On a Side Note…

See another Human Interest Nexus Notes Quarterly article that may be of interest to you.

COVID: An Uneven – and Unequal – Recovery

Topic:
Human Interest
Excerpt:
Canadians have had enough of the lockdown. Here we are 18 months after you first heard of the then mysterious Wuhan flu. Today, but for any curve ball

On a Side Note…

See another Inside Nexus Nexus Notes Quarterly article that may be of interest to you.

Walking Through Time: The History of Nexus

Topic:
Inside Nexus
Excerpt:
Bob Topp’s death last month triggered my memory “replay” button, likely as it did for many of us, whether as a long-time Nexus client, employee, or

On a Side Note…

See another Investments Nexus Notes Quarterly article that may be of interest to you.

The Future of Money: a Digital Currency Primer

Topic:
Investments
Excerpt:
As a bottom-up investment management firm, we spend a lot of time looking at specific companies. But keeping an eye on evolving industry trends can be

On a Side Note…

See another Pearls of Wisdom Nexus Notes Quarterly article that may be of interest to you.

A Table for None, Please; Working From Home on the Rise

Topic:
Pearls of Wisdom
Excerpt:
Reading is one of the principal occupations in our profession. As we digest a wide range of material, interesting ideas and surprising facts – some

On a Side Note…

See another Tax Planning Nexus Notes Quarterly article that may be of interest to you.

The Great Transition – A Tax Efficient Withdrawal Strategy

Topic:
Tax Planning
Excerpt:
The change from “saver” to “spender” is what I call the great retirement transition. Figuring out how to draw on your retirement savings to meet your

On a Side Note…

See another Wealth Planning Nexus Notes Quarterly article that may be of interest to you.

Living to 100… Is 100 the New 80?

Topic:
Wealth Planning
Excerpt:
It’s a common saying that there are two certainties in life, death and taxes. While we have a pretty good idea when we get taxed, which feels like all