PIM: SRI Core Income and Growth Portfolio

Paul Borisoff - May 02, 2018
PIM: SRI Core Income and Growth Portfolio – June 4th, 2018 The SRI Core Income and Growth Portfolio* was up 1.6% in May - leaving the portfolio up 1.3% in 2018 – and up 5.7% over the last twelve months.   In comparison our benchmark was up 1.9% in

PIM: SRI Core Income and Growth Portfolio – June 4th, 2018

 

The SRI Core Income and Growth Portfolio* was up 1.6% in May - leaving the portfolio up 1.3% in 2018 – and up 5.7% over the last twelve months.   In comparison our benchmark was up 1.9% in May – leaving it up 2.0% in 2018 – and up 6.0% 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 first few months of 2018 have been difficult for Canadian investors.  While the Canadian stock market (S&P/TSX Composite Total Return Index) was up 3.1% in May – it is now up only 0.3% in 2018.  Over the last year it is up a respectable 7.8% though.  The Canadian bond market (FTSE/TMX Canada Universe Bond Index) continued its zig-zag pattern once again last month – moving 0.8% higher in May – and back to flat in 2018 (0.0%).   Over the last twelve-months the Canadian bond market is down 1.0%.  

 

The MSCI World Net (USD) Index (50% of our benchmark) was up 1.7% in May – and is now up 3.7% in 2018.  Over the last twelve

months it is up 7.4% (adjusting for the Canadian dollar impact).   

 

The Canadian dollar moved slightly lower in May to $0.7716 CAD/USD from $0.7785 at the end of April – which is still down from $0.7948 at year-end 2017 (boosting U.S. and International returns) year-to-date.  A year ago, though (end of May 2017) the Canadian dollar closed at $0.7406 CAD/USD – with the increase over the last twelve months having the opposite impact compared to early 2018.

 

Asset Allocation – May 31st, 2018:

 

6.5% Cash, 15.8% Fixed Income, 28.7% Canadian Equity, 49.0% Global Equity.

 

Recent Updates:

 

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

 

 

Please do not hesitate to contact us if you have any question or concerns. 

 

Sincerely,

 

Paul J. Borisoff

 

Senior Vice President

Portfolio Manager, Senior Investment Advisor