Should I sell AGF American TAA fund?

Question:I bought AGF American Tactical Asset Allocation Fund as a defensive, pre-retirement play years ago. Could you comment on how well it has weathered the storm and whether I should now sell it. – J. O’S.

Gordon’s answer: This fund has a stellar long-term record, but it has had difficulty keeping its head above water in these tough markets. Over the year to May 31, it showed a loss of just over 3 per cent. No one likes to lose money but given the market conditions that’s a reasonable performance.

You invested in this as a defensive fund, and that’s exactly what you’re getting. You say you have been in for several years. The five-year average annual compound rate of return here is 12.9 per cent while the 10-year number is 13.4 per cent — both excellent results for a balanced fund.

Whether you should sell now depends on your current priorities. If a U.S. balanced fund still has a place in your portfolio, we can see no reason to dump this one.