PIM: SRI Core Income and Growth Portfolio

Paul Borisoff - Jul 05, 2018
PIM: SRI Core Income and Growth Portfolio – July 5th, 2018 The SRI Core Income and Growth Portfolio* was up 0.3% in June - leaving the portfolio up 1.6% in 2018 – and up 7.7% over the last twelve months.   In comparison our benchmark was up 1.3% i

PIM: SRI Core Income and Growth Portfolio – July 5th, 2018

 

The SRI Core Income and Growth Portfolio* was up 0.3% in June - leaving the portfolio up 1.6% in 2018 – and up 7.7% over the last twelve months.   In comparison our benchmark was up 1.3% in June – leaving it up 3.3% in 2018 – and up 9.6% over the last year.

 

* These returns are reported as a composite, time-weighted, rate-of-return (gross of fees, net of transaction charges) for all accounts in this mandate.  Long-Term Returns/Benchmark Numbers will be reported in our Quarterly Updates.

 

The Canadian bond market (FTSE/TMX Canada Universe Bond Index) was up 0.6% in June - pushing it back into positive territory in 2018 (up 0.6%) – and leaving it up 0.8% over the last year.

The Trump administration’s decision to engage in trade wars with most of the country’s major trading partners led to increased volatility in June – and growing concern about what the ramifications will eventually be for the U.S. – and the countries targeted by them.   In this environment of increasing uncertainty, it was therefore not surprising to see defensive investments gain favour in June – as “safety” and “liquidity” became more important to investors.

 

The Canadian stock market (S&P/TSX Composite Total Return Index) was up 1.7% in June – leaving it up 2.0% in 2018.  Over the last year it is up 10.4%.  The MSCI World Net (USD) Index (50% of our benchmark) was up 1.4% in June – and is now up 5.2% in 2018.  Over the last twelve months it is up 12.6% (adjusting for the Canadian dollar impact).   

 

The Canadian dollar moved lower again in June – to $0.7614 CAD/USD from $0.7716 at the end of May – and down from $0.7948 at year-end 2017 (boosting U.S. and International returns) year-to-date.  A year ago, though (end of June 2017) the Canadian dollar closed at $0.7712 CAD/USD – with the slight decrease over the last twelve months proving a small boost to our non-Canadian holdings.

 

Asset Allocation – June 30th, 2018:

 

6.7% Cash, 15.8% Fixed Income, 28.8% Canadian Equity, 48.7% Global Equity.

 

Recent Updates:

 

We did not make any changes to the portfolio in June.

 

Please note our next Quarterly Summary and Quarterly Commentary will be available by next Friday, July 13th.   In the meantime, please do not hesitate to contact me if you have any question or concerns. 

 

Sincerely,

 

Paul J. Borisoff

Senior Vice President

Portfolio Manager, Senior Investment Advisor