What's your vintage year?
When did you become an EdgePoint partner? Select your "Partner since" year and uncover a piece of EdgePoint history.
Let's take a walk down memory lane as we recall the major events and fun facts from your vintage year.
I've been a Partner since...
Global
Russia invades Ukraine, one of the world’s largest producers of wheat, corn and barley. Russia faces trade sanctions and removal from the SWIFT financial processing system.
Supply chain disruptions caused by COVID-19, port closures and insufficient labour bring scarcity and increased prices.
The “Women, Life, Freedom” protests begin in Iran following the death of Mahsa Amini.
King Charles III becomes King of the U.K. following the passing of his mother, Queen Elizabeth II. She holds the records as both the longest reigning female head of state and British monarch.
Elon Musk buys Twitter for US$44 billion.
Argentina wins the 2022 FIFA World Cup in Qatar. It was the first time a Middle Eastern country hosted the tournament and was allegedly the most expensive iteration with an estimated cost of US$220 billion.i
Markets
Despite hitting an all-time high in January, the S&P 500 Index enters a bear market by June.ii
By the end of the year, both the Bank of Canada and U.S. Federal Reserve raise interest rates seven times to 4.25%iii and 4.50%,iv respectively.
As measured by the Consumer Price Index, Canadian inflation on an average annual basis hit a 40-year high of 6.8%,v while the U.S. rate was 6.5%.vi
Adding to the oil & gas shortage caused by Russian sanctions, OPEC+ cuts production.vii
Two events, digital coin TerraUSD/Luna’s fall and the bankruptcy of exchange FTX, sent cryptocurrency crashing.viii
EdgePoint
2022 was full of events – war, inflation and other disruptions that might have tempted investors without a long-term view on their holdings to flee for safety and lock in their losses. We can benefit from these short-term declines by buying businesses at prices we believe are below their true value by having ideas as to why they can grow over time, while not paying for that growth. These ideas, what we call proprietary insights, give us the confidence to commit to existing holdings through these price drops and give the market time to recognize our views. Our willingness to look different from the market paid off when our Canadian Portfolio, Series F returned 4.4% relative to -5.8% for the S&P/TSX Composite Index.ix In absolute terms, the Global Portfolio, Series F returned -5.5% in 2022 versus the MSCI World Index’s return of -12.2%.x
After years of cheap money, fixed income investors had to reset their expectations as central banks began raising interest rates to deal with inflation. We have often stated that we don’t think our strength lies in making macro predictions, but we believed that these historically low rates we’d had since the 2008-09 financial crisis couldn’t last forever. This wasn’t a popular opinion as indexes and funds based on those indexes were full of long-duration debt that left them vulnerable to interest rate risk. By doing our own credit work we were able to construct a collection of fixed income securities with a much lower duration and from creditworthy businesses that allowed us to capitalize when central banks raised rates several times in 2022.xi The Canadian Growth & Income Portfolio, Series F had a 2.8% return for the year, while the blended 60% S&P/TSX/40% ICE BofA Canada Broad Market Index returned -7.9%.xii The Global Growth & Income Portfolio, Series F outperformed the blended benchmark 60% MSCI World Index/40% ICE BofA Canada Broad Market Index with returns of -2.8% and -11.7%, respectively.xiii Although newer, our fixed income-focused Portfolios highlighted the benefits of our approach in the space. EdgePoint Monthly Income Portfolio, Series F returned -5.8% compared to the benchmark FTSE Canada Universe Bond Index’s return of -11.7%.xiv
The year reinforced why it was so important for us to focus on advisors who shared a similar mindset when it came to investing. We continue to believe that they provide their clients with the best opportunity to avoid making investing mistakes based on emotions like fear and greed. These like-minded advisors (defined as low redemption rate and/or positive net sales) account for 82% of our assets under management.xv They had a 10% redemption rate for the year, compared to an industry average of 17%.xvi
Returns
As at May 31, 2023. Total returns, net of fees (excluding advisory fees), in C$. Series F is available to investors in a fee-based/advisory fee arrangement and doesn’t require EdgePoint to incur distribution costs in the form of trailing commissions to dealers. Returns for periods over one year annualized. Since inception returns since the EdgePoint Portfolio inception (November 17, 2008), except for EdgePoint Monthly Income Portfolio inception (November 2, 2021).
EdgePoint Global Portfolio, Series F (EPGP)
YTD: 2.31%; 1-year: 5.50%; 3-year: 10.76%; 5-year: 4.06%; 10-year: 11.06%; since inception: 13.37%
MSCI World Index
YTD: 8.87%; 1-year: 9.69%; 3-year: 10.35%; 5-year: 8.80%; 10-year: 11.61%; since inception: 11.35%
EdgePoint Canadian Portfolio, Series F (EPCP)
YTD: 7.98%; 1-year: 14.03%; 3-year: 26.39%; 5-year: 10.74%; 10-year: 11.04%; since inception: 13.09%
S&P/TSX Composite Index
YTD: 2.27%; 1-year: -2.46%; 3-year: 12.10%; 5-year: 7.27%; 10-year: 7.66%; since inception: 8.88%
EdgePoint Global Growth & Income Portfolio, Series F (EPGIP)
YTD: 3.01%; 1-year: 6.02%; 3-year: 9.61%; 5-year: 4.37%; 10-year: 9.13%; since inception: 11.23%
60% MSCI World Index/40% ICE BofA Canada Broad Market Index
YTD: 6.20%; 1-year: 6.15%; 3-year: 4.86%; 5-year: 5.67%; 10-year: 7.74%; since inception: 8.22%
EdgePoint Canadian Growth & Income Portfolio, Series F (EPCIP)
YTD: 5.61%; 1-year: 9.72%; 3-year: 18.25%; 5-year: 8.57%; 10-year: 9.25%; since inception: 11.07%
60% S&P/TSX Composite Index/40% ICE BofA Canada Broad Market Index
YTD: 2.32%; 1-year: -1.04%; 3-year: 5.90%; 5-year: 4.86%; 10-year: 5.48%; since inception: 6.82%
EdgePoint Monthly Income Portfolio, Series F (EPMIP)
YTD: 2.11%; 1-year: 1.92%; since inception: -2.23%
FTSE Canada Universe Bond Index
YTD: 2.47%; 1-year: 0.86%; since inception: -4.56%
Our portfolio benchmarks:
Note – The indexes are not investible.
EPGP: MSCI World Index is a broad-based, market-capitalization-weighted index comprising equity securities available in developed markets globally. The index was chosen for being a widely used benchmark of the global equity market.
EPCP: S&P/TSX Composite Index is a market-capitalization-weighted index comprising the largest and most widely held stocks traded on the Toronto Stock Exchange. The index was chosen for being a widely used benchmark of the Canadian equity market.
EPGIP: 60% MSCI World Index/40% ICE BofA Canada Broad Market Index. ICE BofA Canada Broad Market Index tracks the performance of publicly traded investment-grade debt denominated in Canadian dollars and issued in the Canadian domestic market. The blended benchmark was chosen because the MSCI World Index is a widely used benchmark for the global equity market and the ICE BofA Canada Broad Market Index is representative of fixed-income opportunities consistent with the Portfolio’s mandate.
EPCIP: 60% S&P/TSX Composite Index/40% ICE BofA Canada Broad Market Index. The blended benchmark was chosen because the S&P/TSX Composite Index is a widely used benchmark of the Canadian equity market and the ICE BofA Canada Broad Market Index is representative of fixed-income opportunities consistent with the Portfolio’s mandate.
EPMIP: The FTSE Canada Universe Bond Index tracks the performance of investment-grade debt denominated in Canadian dollars and issued by Canadian government and corporations. The index was chosen as it is a widely used benchmark of the Canadian fixed-income market.
We manage our Portfolios independently of the indexes we use as long-term performance comparisons. Differences including security holdings and geographic/sector allocations may impact comparability and could result in periods when our performance differs materially from the index. Additional factors such as credit quality, issuer type and yield may impact fixed-income comparability from the index.
i Source: Aryn Baker, “Here’s What Will Happen to Qatar’s Billion Dollar Stadiums Now That the World Cup Is Over.” Time.com. December 20, 2022. https://time.com/6242292/what-happens-to-qatar-world-cup-stadiums/.
ii Source: Scott Schnipper, “The S&P 500 is now in an official bear market, according to S&P Dow Jones Indices.” CNBC.com. June 13, 2022. https://www.cnbc.com/2022/06/13/sp-500-is-in-official-bear-market-according-to-sp-dow-jones-indices.html.
iii Source: Bank of Canada, Policy Interest Rate. As at December 31, 2022.
iv Source: Board of the Governors of the Federal Reserve, “Federal Reserve issues FOMC statement”, December 14, 2022.
v Source: “Consumer Price Index: Annual review, 2022”, Statistics Canada. https://www150.statcan.gc.ca/n1/daily-quotidien/230117/dq230117b-eng.htm.
vi Source: “Consumer Price Index: 2022 in review”, U.S. Bureau of Labor Statistics, https://www.bls.gov/opub/ted/2022/consumer-price-index-2022-in-review.htm#:~:text=From%20December%202020%20to%20December,of%203.9%20percent%20in%202020.
vii Source: Sam Meredith, “OPEC+ to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure”, CNBC.com, October 5, 2022. https://www.cnbc.com/2022/10/05/oil-opec-imposes-deep-production-cuts-in-a-bid-to-shore-up-prices.html.
viii Source: Stacy Elliot, “The Biggest Story in Crypto in 2022: Contagion—From Terra to FTX.” Decrypt.co. December 19, 2022. https://decrypt.co/117420/story-of-the-year-crypto-contagion-terra-ftx.
ix See Returns section for more information.
x See Returns section for more information.
xi See endnotes iii and iv.
xii See Returns section for more information.
xiii See Returns section for more information.
xiv See Returns section for more information.
xv As at December 31, 2022.
xvi Source: IFIC, Scotiabank GBM. Trailing 12-month gross redemption rate (percentage of AUM) as at November 30, 2022 for long-term assets. Data consists of companies who report directly to IFIC along with estimates from Strategic Insight.
Global
COVID-19 vaccines provided hope, but variants disrupted supply chains and kept cities locked down.
Trump supporters storm the U.S. Capitol Building to protest the results of the 2020 election, resulting in hundreds of arrests.
Snowstorms and incredibly low temperatures took down the Texas power grid and left millions of people without electricity.
U.S. forces leave Afghanistan after 20 years of war and the Taliban returns to power.
Tokyo hosts the delayed 2020 Summer Olympics; Prince Harry gives up his royal title and Britney Spears gets her freedom back after 13 years of conservatorship.
Markets
As measured by the Consumer Price Index, Canadian inflation hit 3.4%,i while the U.S. rate hit an almost 40-year high at 7%.ii
U.S. Congress increases the debt ceiling to US$28.9 trillion to avoid a default.iii
A February 2021 auction of U.S. Treasury Bonds saw prices drop sharply due to a lack of demand before recovering.iv
Chinese regulation of tech companies wipes out over $1 trillion dollars of market capitalization.v
The Dutch TTF Gas, Europe’s liquid natural gas benchmark, went from €19.12/MWh at the start of the year to a high of €180.27/MWh on December 21, 2021.vi
Prices for “meme stocks” such as GameStop and AMC Entertainment Holdings are carried to new highs by day traders, while Robin Hood and Coinbase go public.
EdgePoint
EdgePoint introduced its first prospectus mutual fund since our November 17, 2008 inception. The fixed-income fund has a unique fee structure tied to the yield-to-maturity of a Canadian bond index. It’s another way we put our investors’ interest at the forefront. See here for more details.
In 2021, we recommitted to focusing our coverage efforts on the group advisors who exhibited like-minded behavior in 2020 (defined as low redemption rate and/or positive net sales).
Although we don’t focus on short-term performance, in 2021 our Canadian Portfolio, Series F posted a pleasing return of 42% vs. the S&P/TSX Composite benchmark at 25%.vii Meanwhile, the Global Portfolio, Series F kept pace, growing 20% compared to 21% for the MSCI World Index.viii In both cases, the Funds looked significantly different from their benchmarks, with active shares of 86% and 98% for the Canadian and Global Portfolios, respectively.ix We continue to approach investing with measured confidence and look towards the long-term to compound our clients’ hard-earned wealth.
i Source: “Consumer Price Index: Annual review, 2021”, Statistics Canada. https://www150.statcan.gc.ca/n1/daily-quotidien/220119/dq220119b-eng.htm.
ii Source: “Consumer Price Index: 2021 in review”, U.S. Bureau of Labor Statistics, https://www.bls.gov/opub/ted/2022/consumer-price-index-2021-in-review.htm#:~:text=From%20December%202020%20to%20December,of%203.9%20percent%20in%202020.
iii Source: Alex Aronovich, Dobrislav Dobrev & Andrew Meldrum, “Federal Debt and the Statutory Limit, November 2021”, Congressional Budget Office. https://www.cbo.gov/publication/57653.
iv Source: “The Treasury Market Flash Event of February 25, 202”, U.S. Federal Reserve, May 14, 2021. https://www.federalreserve.gov/econres/notes/feds-notes/the-treasury-market-flash-event-of-february-25-2021-20210514.htm.
v Source: Don Weinland, “Xi Jinping’s crackdown on Chinese tech firms will continue”, Economist.com, November 8, 2021. https://www.economist.com/the-world-ahead/2021/11/08/xi-jinpings-crackdown-on-chinese-tech-firms-will-continue.
vi EU Natural Gas, Trading Economics, https://tradingeconomics.com/commodity/eu-natural-gas.
vii As at December 31, 2021. Total returns, net of fees. Returns for periods over one year annualized. Since inception returns since EdgePoint Portfolio inception (November 17, 2008). All Series F. Series F is available to investors in a fee-based/advisory fee arrangement and doesn’t require EdgePoint to incur distribution costs in the form of trailing commissions to dealers.
EdgePoint Global Portfolio (EPGP)
YTD: 19.61%; 1-year: 19.61%; 3-year: 11.06%; 5-year: 9.57%; 10-year: 15.07%; since inception: 15.21%
MSCI World Index
YTD: 20.78%; 1-year: 20.78%; 3-year: 18.57%; 5-year: 13.66%; 10-year: 15.15%; since inception: 13.04%
EdgePoint Canadian Portfolio (EPCP)
YTD: 42.04%; 1-year: 42.04%; 3-year: 19.69%; 5-year: 9.96%; 10-year: 11.71%; since inception: 13.56%
S&P/TSX Composite Index
YTD: 25.09%; 1-year: 25.09%; 3-year: 17.52%; 5-year: 10.04%; 10-year: 9.14%; since inception: 10.20%
EdgePoint Global Growth & Income Portfolio (EPGIP)
YTD: 14.95%; 1-year: 14.95%; 3-year: 8.93%; 5-year: 7.94%; 10-year: 11.99%; since inception: 12.50%
60% MSCI World Index/40% ICE BofA Canada Broad Market Index
YTD: 10.89%; 1-year: 10.89%; 3-year: 12.80%; 5-year: 9.56%; 10-year: 10.39%; since inception: 9.68%
EdgePoint Canadian Growth & Income Portfolio (EPCIP)
YTD: 27.21%; 1-year: 27.21%; 3-year: 15.04%; 5-year: 8.58%; 10-year: 10.05%; since inception: 11.63%
60% S&P/TSX Composite Index/40% ICE BofA Canada Broad Market Index
YTD: 13.31%; 1-year: 13.31%; 3-year: 12.33%; 5-year: 7.52%; 10-year: 6.92%; since inception: 8.07%
Our portfolio benchmarks:
EPGP: MSCI World Index is a broad-based, market-capitalization-weighted index comprising equity securities available in developed markets globally. The index was chosen for being a widely used benchmark of the global equity market.
EPCP: S&P/TSX Composite Index is a market-capitalization-weighted index comprising the largest and most widely held stocks traded on the Toronto Stock Exchange. The index was chosen for being a widely used benchmark of the Canadian equity market.
EPGIP: 60% MSCI World Index/40% ICE BofA Canada Broad Market Index. ICE BofA Canada Broad Market Index tracks the performance of publicly traded investment-grade debt denominated in Canadian dollars and issued in the Canadian domestic market. The blended benchmark was chosen because the MSCI World Index is a widely used benchmark for the global equity market and the ICE BofA Canada Broad Market Index is representative of fixed-income opportunities consistent with the Portfolio’s mandate.
EPCIP: 60% S&P/TSX Composite Index/40% ICE BofA Canada Broad Market Index. The blended benchmark was chosen because the S&P/TSX Composite Index is a widely used benchmark of the Canadian equity market and the ICE BofA Canada Broad Market Index is representative of fixed-income opportunities consistent with the Portfolio’s mandate.
We manage our Portfolios independently of the indexes we use as long-term performance comparisons. Differences including security holdings and geographic/sector allocations may impact comparability and could result in periods when our performance differs materially from the index. Additional factors such as credit quality, issuer type and yield may impact fixed-income comparability from the index.
viii Ibid.
ix Active share is the percentage of a fund’s holdings that differs from the benchmark index.
Although discovered in 2019, COVID-19 goes global in 2020 and affects almost every facet of life. Regional lockdowns create a global shift to working from home in many sectors and transform parents into part-time teachers. The rise in cases forces travel reductions, while the constant influx of news turns toilet paper into an incredibly scarce commodity. Economies, both at the national and local level, struggle to adapt.
Kobe Bryant’s death, protests around the world, wildfires and an election unlike any other all contribute more negative news and headlines to an already eventful year.
Joe Biden is elected the 46th President of the United States.
Several COVID-19 vaccines announced near the end of the year bring hope of recovery.
Unparalleled panic and uncertainty stemming from the unknowns around COVID-19 cause one of the sharpest declines in the stock markets…
…clocking in at only 33 days. It was the shortest bear market in S&P 500 Index history.i
Oil prices go negative for the first time in history.ii
Central banks slash interest rates to all-time lows and negative territory.
Amid the uncertainty, investors flock to businesses poised to thrive in a pandemic-induced lockdown environment, leading to an extremely bifurcated market:
1) in-favour businesses where no price seems too high for investors, and
2) out-of-favour businesses that can’t attract investors at any price.
A handful of tech stocks and mega caps largely carry the market in 2020, resulting in some of the highest concentrations in top names across major indexes since the bubble of 2000.
Tesla, Inc., despite selling fewer than 500,000 cars,iii becomes the world’s most valuable car manufacturer and joins the S&P 500.iv
In order to help our partners and investors navigate this challenging environment and avoid making decisions based on short-term emotions, we commit to providing open, honest and timely communication at a greater frequency than ever before. We hold Investment team webinars, host numerous video conferences with our advisor partners, produce investor-friendly videos and print materials, as well as have many one-on-one advisor calls.
Choosing not to be exposed to businesses that everyone wants to own was the primary driver for the Portfolios' underperformance against their benchmarks. We believe that sometimes you need to be willing to look wrong in the short term in order to be right in the long term.
As in previous times of uncertainty, we remain committed to our investment approach.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Ahmed, Saqib Iqbal & Randewich, Noel. "Say goodbye to the shortest bear market in S&P 500 history," Reuters.com, August 18, 2020. https://www.reuters.com/article/us-usa-stocks-s-p500-bear-graphic-idUSKCN25E2R9. Bear markets occur when the stock market declines by at least 20% from peak to trough.
iiSource: "US oil prices turn negative as demand dries up," BBC.com, April 20, 2020. https://www.bbc.com/news/business-52350082. Oil price is the per barrel price of West Texas Intermediate (WTI), a crude oil grade used as a benchmark for oil pricing.
iiiSource: Tesla, “Tesla Q4 2020 Vehicle Production,” Tesla.com, January 2, 2021. https://ir.tesla.com/press-release/tesla-q4-2020-vehicle-production-deliveries.
ivSource: Wayland, Michael. “Tesla’s market cap tops the 9 largest automakers combined — Experts disagree about if that can last,” CNBC.com, December 14, 2020. https://www.cnbc.com/2020/12/14/tesla-valuation-more-than-nine-largest-carmakers-combined-why.html.
A fire in at Notre-Dame de Paris shuts down the cathedral, climate activist Greta Thunberg becomes the youngest TIME person of the year and president Donald Trump is impeached.
Escalation of the U.S.-China trade war increases tariffs and weighs on global markets.
Hong Kong anti-government protests escalate and make headlines during the second half of the year.
U.K. prime minister Theresa May resigns following several failed attempts at negotiating Brexit and is succeeded by Boris Johnson.
The longest bull market (no declines greater than 20%) in U.S. history enters its 11th year.i Despite the trade wars, the S&P 500 Index delivers a 31% return, the highest since 2013.ii Technology stocks in particular gain 50% in their best year since 2009.iii
The wave of technology IPOs continues to swarm the market including several high-profile tech companies such as Zoom, Beyond Meat, Pinterest and Uber.iv
In March, the U.S. bond yield-curve inverts for the first time since 2007.v
U.S. Federal Reserve cuts rates three times during the year to help maintain the U.S. economy amidst signs of a slowdown.vi
EdgePoint has merch! But you have to pay for it. All profits go towards lowering investor fees so you can shop guilt-free.
Inside Edge, a weekly collection of interesting reads from the desks of our Investment team, is launched.
EdgePoint goes multimedia – we create videos on looking at an investor’s journey with EdgePoint over the first 10 years and decoding your investment returns to clarify the common confusion between book value and net amount invested.
Although the S&P 500 Index continues its strong run, most of the year focuses on negatives like international trade disputes, macro policy changes and fears about an overdue correction. Amid these fears, investors once again turn to “safety names” and "obvious growers" and contribute to some of the widest valuation gaps between most expensive and least expensive stocks in history. Despite this environment, our investment approach remains the same. Occasional short-term underperformance, like what happened in 2019, is normal and is a by-product of the approach. You cannot outperform in the long term if you’re not willing to look different from the crowd and withstand periods of underperformance in the short term. Investment team members work every day with passion and commitment to search for businesses with good long-term growth prospects, run by competent management teams where we aren’t being asked to pay for that growth and have a proprietary insight.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Egan, Matt et. al., "Stocks are at an all-time high. Here's what stopped the last 12 bull runs", CNN.com, April 23, 2019. https://www.cnn.com/2019/04/23/investing/bull-market-history/index.html.
iiSource: Bloomberg LP. Return is total return and in US$. The S&P 500 Index is a broad-based, market-capitalization-weighted index of the 500 largest and most widely held U.S. stocks.
iiiSource: Bloomberg LP. Return is total return and in US$. Technology stocks are the S&P 500 Information Technology Index, members of the S&P 500 Index that are classified in the information technology sector.
ivSource: Griswold, Alison, “The top tech IPOs of 2019”, Quartz, December 31, 2019. https://qz.com/1777279/top-tech-ipos-of-2019-zoom-medallia-crowdstrike.
vSource: Srivastava, Spriha, “The US bond yield curve has inverted. Here’s what it means”, CNBC.com, March 25, 2019. https://www.cnbc.com/2019/03/25/the-us-bond-yield-curve-has-inverted-heres-what-it-means.html.
viSource: “U.S. Federal Reserve cuts interest rates for 3rd time this year”, CBC.ca, October 30, 2019. https://www.cbc.ca/news/business/u-s-federal-reserve-interest-rates-1.5341282.
The leaders of North Korea and South Korea meet in an historic summit in April, the #MeToo movement goes global, and there is a very American addition to the British royal family.
Two retail icons go bankrupt: Founded as a mail-order watch business in 1886, Sears files for bankruptcy; the former toy giant, Toys “R” Us, also declares bankruptcy after more than 60 years in business.
Apple becomes the first American publicly traded company to reach US$1 trillion in value, and Jeff Bezos of Amazon becomes the world’s richest man (again).
The U.S. Consumer Confidence Index hits an 18-year high in August 2018.i
U.S. unemployment falls to its lowest level in 50 years.ii
U.S.–China trade tensions increase as the U.S. announces tariffs on US$200 billion of Chinese imports.iii
In December, the S&P 500 Index plunges 14% for the quarter.iv It’s the worst fourth quarter since the Financial Crisis. Ongoing trade wars intensify and the U.S. Federal Reserve Board announces its decision to raise the benchmark rate, with plans for further increases in 2019.v
EdgePoint turns 10! Ten years after putting investors first, we are pleased with our progress in compounding wealth for our investors. We now turn our attention to the next decade with the same dedication and passion.
The year in the markets ends differently from how it began. Volatility returns with tumbling energy prices, rising interest rates and mounting global trade tensions. We continue to rely on our investment approach and long-term thinking, taking advantage of the volatility.
EdgePoint raises fund minimums from $15,000 to $20,000. We do this to ensure that we continue partnering with like-minded advisors who have a solid understanding of EdgePoint, hoping that the higher minimums will encourage new advisors to look beyond short-term performance to truly understand who we are and how we invest for the long term.
To show appreciation for our partners who have trusted us and stayed disciplined with their investments over the last 10 years, we launch the 10-year Partner Program. This program offers our long-time partners fee reductions (via rebates) so more of their money can work for them as they seek to achieve their long-term financial goals.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Bloomberg LP. As at August 28, 2018.
iiSource: U.S. Bureau of Labor Statistics. As at October 5, 2018.
iiiSource: Office of the United States Trade Representative (USTR). As at September 18, 2018.
ivSource: Bloomberg LP. As at December 2018. The S&P 500 Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held U.S. stocks.
vSource: The U.S. Federal Reserve Board. As at December 2018.
America is treated to the first total solar eclipse in 99 years; Amazon founder Jeff Bezos briefly becomes the world's richest man, overtaking Bill Gates for half a day; the “Silence Breakers” – those who spoke out against sexual assault and harassment – are named Time Magazine’s “Person of the Year”.
Nine years of rising markets have investors riding a high all the way to the end of 2017.
The S&P 500 Index sets an all-time record as the longest period without a correction of at least 3%.i
Trump signs sweeping new tax overhaul into law. The S&P 500 Index soars to new highs.ii
Volatility does a great disappearing act, leaving us to hope investors don’t forget that one of the few guarantees about investing is that the road to returns will be rocky.
We at EdgePoint eagerly wait for market volatility to return.
Standing desks become popular at EdgePoint – in 2014 we bought one to accommodate somebody with a bad back. In early 2017, we expand to four but our cost-conscious ways stop us there. That is, until someone on our Finance team finds a great deal and we buy 24 more.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Bloomberg LP. As at November 2017. The S&P 500 Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held U.S. stocks.
iiSource: Bloomberg LP. As at December 22, 2017. The S&P 500 Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held U.S. stocks.
The refugee crisis and Syrian civil war intensify.
The Summer Olympics are held in Rio.
Donald J. Trump is elected 45th President of the United States.
China slows and the price of oil drops below US$30 to a 12-year low (and then recovers).i
The U.K. votes to leave the European Union and the British pound hits a 31-year low against the U.S. dollar.ii
Many topical stories make the headlines this year, but it’s largely noise to us. Don’t get us wrong, we’re all ears because we like to know what the industry is focusing on, although none of the drama causes us to significantly change course. That’s because our disciplined investment approach doesn’t change with the headlines.
Our first Cymbria Day at Koerner Hall is attended by 445 partners from across the country. It’s always great to see everyone!
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Bloomberg LP, Brent crude. As at January 12, 2016.
iiSource: Bloomberg LP. As at October 2016.
A series of coordinated terror attacks take place in Paris, and thousands of people flee war-torn Syria and other areas in the Middle East and Africa, making the dangerous trek through Europe.
At the end of 2015, volatility returns with a vengeance and the price of oil drops like a stone, taking the Canadian dollar with it, while interest rates stay unchanged near 0%.
The “Grexit” crisis takes hold as concerns rise that Greece will exit the Eurozone over bailout negotiations.
A slowdown in China begins to hurt the global economy with reduced demand for commodities.
The U.S. Federal Reserve Board raises short-term interest rates for the first time in a decade.
We launch the Management Expense Ratio (MER) savings counter on our website – as always, our goal is to shrink costs and grow wealth.
We expand our office and our gym – having partners who lead a healthy lifestyle is very important to us.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
The ALS ice bucket challenge goes viral on social media in the summer. The Winter Olympics are held in Sochi.
The Russia-Ukraine tensions mount and a brutal new terror group is on the rise in the Middle East.
The U.S. Federal Reserve Board ends its quantitative easing program. In the markets, it’s just another year when stocks move higher.
In November, the S&P 500 Index closes at a record level for 46th time in a year.i
We launch our new website, www.edgepointwealth.com. This new site reminds us that, unlike our investment approach, technology is anything but timeless.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Bloomberg LP. As at November 2014. The S&P 500 Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held U.S. stocks.
New word "selfie" is added to the dictionary; the world welcomes a new pope and a new royal baby. An unprecedented flood swamps southern Alberta. Canada removes the penny from circulation.
Concerns about the U.S. debt ceiling mount during the year and the U.S. Federal Reserve Board begins tapering (reducing its quantitative easing measures).
We experience almost nothing but upwardly sloping equity price fluctuations in 2013 and Wall Street ends the year on a record high.
EdgePoint turns five!
We hold our first EDGE-ucation camp event. We spend a summer afternoon with a select group of our partners’ children, taking a lighthearted look at saving and investing.
Since then, our EDGE-ucation camp has grown every year. As more kids attend these events every year, we’ve been adding more camps in more cities.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
The Summer Olympics are held in London, the largest shipwreck in history occurs west of Tuscany, Hurricane Sandy hits the U.S. and we witness the Transit of Venus, a rare astronomical event, for the last time in this century.
U.S. National Home Price Index hits a new bottom, falling 27% from June 2006 highs.i
Greece’s 10-year government bond yields rise from 5% to over 30% in less than 12 months on default concerns.ii
By many measures, the economy is on a welcome upswing. The unemployment rate dips to a four-year-low of 7.7%,iii stock markets rise, builders break ground on more homes and November is the best sales month in nearly five years for U.S. automakers.
Overshadowing the good news is deep anxiety about the economic consequences if U.S. President Obama and the Democrats fail to reach a deal with the Republicans to avert the "fiscal cliff" that would trigger automatic tax hikes and spending cuts.
Safety, income and low volatility are the buzzwords in the investment fund industry. But we send a different message. We believe investors need companies that can grow regardless of economic conditions, and we try to buy them that growth for free.
We launch EdgePoint Academy for our end investors because we believe being a better-informed investor leads to better investment decisions. The idea behind EdgePoint Academy is to provide access to easy-to-understand educational material and our perspective on investment-related topics.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Standard & Poor’s Financial Services. As at February 2012.
iiSource: Bloomberg LP. As at March 2012.
iiiSource: U.S. Bureau of Labor Statistics. As at December 2012.
Prince William and Kate Middleton get married, the world population reaches seven billion, a devastating Tsunami hits Japan and Apple founder Steve Jobs dies.
In August, U.S. AAA credit rating is downgraded for the first time on concerns about its rising debt burden.i Two days later, the S&P 500 Index falls 6%ii in one day amid bank concerns.
The aftereffects of the Financial Crisis reveal the clumsy and, at times, irresponsible state of affairs in a number of Eurozone economies, particularly in Greece, where bailout packages mandated crippling budget cuts and other austerity measures.
Fear dominates the markets, but we embrace volatility and work on making investments that will add value in the future. Every day we gain new investor and advisor partnerships, while strengthening our existing relationships.
We move out of our old office and into a new one to accommodate our growth – but not at a high price tag. We secure a lease well below market value, thereby reinforcing our cost-conscious culture.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Standard & Poor’s Financial Services, S&P Global Ratings. As at August 5, 2011.
iiSource: Bloomberg LP. As at August 8, 2011. The S&P 500 Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held U.S. stocks.
Instagram launches, Apple introduces the iPad, and Starbucks and McDonald’s begin offering free Wifi.
Volcanic ash from Iceland causes major disruptions in air travel across Europe and a cataclysmic earthquake rocks Haiti and leaves millions homeless.
Spain wins the soccer World Cup in South Africa and Vancouver hosts the Winter Olympics.
Many European Union economies adopt austerity as the watchword of the day. As Greece teeters toward bankruptcy in May, tens of thousands march in Athens and other cities to protest government plans to cut back on public-sector spending.
In April 2010, Greece is downgraded to junk status by ratings agencies.i
On May 6th, a “Flash Crash” takes place and the Dow Jones Industrial Average briefly declines by nearly 1,000 points within minutes, only to recover a large part of the loss 20 minutes later.
The MSCI World Index falls 11%ii in two months.
The U.S. Federal Reserve Board announces another round of quantitative easing (QE2) with plans to buy US$600 billion in Treasuries.iii
Terms like “high unemployment,” “large deficits,” “increased volatility,” “market uncertainty” and “investor nervousness” aptly describe the investment backdrop. Music to our ears! We take advantage of the volatility and uncover many great investment opportunities.
After certain provincial governments introduce the Harmonized Sales Tax (HST), EdgePoint is one of a few mutual fund companies to launch a non-HST series in 2010. This tax is in effect in five of the 10 Canadian provinces. We won’t make investors pay it if they don’t have to.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: Standard & Poor’s Financial Services, S&P Global Ratings.
iiSource: Bloomberg LP. As at June 9, 2010. In C$. The MSCI World Index is a broad-based, market-capitalization-weighted index comprising equity securities available in developed markets globally.
iiiSource: U.S. Federal Reserve Board. As at November 3, 2010.
Bernard Madoff is sentenced to 150 years in prison for operating a massive Ponzi scheme; an unknown person using the name “Satoshi Nakamoto” develops the bitcoin; in the “Miracle on the Hudson,” Chesley Sullenberger safely lands US Airways Flight 1549 on the Hudson River after the plane hit Canadian geese while taking off from LaGuardia Airport; the death of the “King of Pop” Michael Jackson brings worldwide outpourings of grief.
The world appears on the brink of collapse and capitalism is declared dead.
Spendthrifts become tightwads, a new age of austerity dawns and governments in the U.S. and around the world pump trillions of dollars into the financial system and into the economies, hoping to avert another Great Depression.
Once an icon of U.S. manufacturing, Detroit is battered badly as its economy craters, Fiat buys a stake in Chrysler and General Motors plunges in and out of bankruptcy.
Unemployment in the U.S. hits a 26-year high of 10.2%.i
The S&P 500 Index declines to its lowest level in more than a decade, closing at 676.ii
Tye and Geoff call this period “the best opportunity of our investment careers.”
Geoff MacDonald is selected by the World Economic Forum as a "Young Global Leader".
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which we believe has allowed us to build future wealth into our Portfolios.
iSource: U.S. Bureau of Labor Statistics. As at October 2009.
iiSource: Bloomberg LP. As at March 9, 2009. The S&P 500 Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held U.S. stocks.
EdgePoint is born! Fed up with an industry led by sales and marketing, where mutual fund companies have become “fund supermarkets” and asset gatherers, our founders set out to start EdgePoint, an investment-led firm solely focused on the interests of our investors. We ask investors for their trust and commit to work hard to deliver on these three goals:
Achieve investment results at or near the top of our peer group over 10 years.
Remain an investment-led organization that has strong relationships with our investment partners.
Maintain a company culture that inspires our employees to think and act like owners.
Oil hits US$160i a barrel, the 29th Summer Olympics are held in Beijing, Apple releases the iPhone 3G and Barack Obama becomes the first African American to be elected U.S. President.
It also happens to be the dawn of the worst economic crisis in recent memory, dubbed the Great Recession. Major panic consumes the market.
Global stock prices plunge to record lows and the Dow Jones Industrial Average loses 33.8%ii of its value. The U.S. Consumer Confidence Index hits its lowest point on record.iii By the end of the year, the Great Recession envelopes the entire globe.
Purportedly stable companies like Lehman Brothers file for bankruptcy and a significant domino effect seizes financial systems.
Late in the year, the U.S. Federal Reserve Board initiates the first round of quantitative easing in order to increase money supply and stabilize fragile markets.
Note: In each year there were macroeconomic events that weighed heavily on the minds of our investors. Here’s what we believe: when you know the value of the businesses you own, none of this “noise” really matters – except for the increased volatility that results from these events, which provided us with great investment opportunities.
iSource: Bloomberg LP. US Brent Crude.
iiSource: Bloomberg LP.
iiiSource: Bloomberg LP. As at October 28, 2008.