PIM: SRI Core Income and Growth Portfolio
Paul Borisoff - May 02, 2018
PIM: SRI Core Income and Growth Portfolio – May 2nd, 2018 The SRI Core Income and Growth Portfolio* was up 0.1% in April - leaving the portfolio down 0.3% in 2018 – and up 5.2% of the last twelve months. In comparison our benchmark was up 0.7% i
PIM: SRI Core Income and Growth Portfolio – May 2nd, 2018
The SRI Core Income and Growth Portfolio* was up 0.1% in April - leaving the portfolio down 0.3% in 2018 – and up 5.2% of the last twelve months. In comparison our benchmark was up 0.7% in April – leaving it up 0.1% in 2018 – and up 4.0% 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 1.8% in April – it is still down 2.8% in 2018. Over the last year it is now up 3.1%. The FTSE/TMX Canada Universe Bond Index was down 0.9% in April though - putting it back into negative territory for the year (down 0.8% in 2018) – and down 0.9% over the last year.
The MSCI World Net (USD) Index (50% of our benchmark) was up 0.5% in April – and is now up 2.0% in 2018. Over the last twelve months it is up 6.3% (adjusting for the Canadian dollar impact).
The Canadian dollar moved slightly higher in April to $0.7785 CAD/USD from $0.7754 at the end of March – 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 April 2017) the Canadian dollar closed at $0.7324 CAD/USD – with the increase over the last twelve months having the opposite impact compared to early 2018.
Asset Allocation – April 30th, 2018:
6.6% Cash, 15.9% Fixed Income, 28.5% Canadian Equity, 49.0% Global Equity.
We did not make any changes to the portfolio in April.
Position Highlight: RBC Vision Global Equity Fund:
Our top performing position in the portfolio is currently the RBC Vision Global Equity Fund – managed by Habib Subjally from RBC Global Asset Management (UK) Ltd. Our position is up ~28% since adding it to our original portfolio in June of 2016 – including distributions. This Fund invests primarily in equity securities of companies throughout the world – and follows a Socially Responsible Approach to investing. Portfolio Exposure (as of March 31st, 2018):
Top 5 Sectors: Top 15 Holdings:
Financials 19.8% The Estee Lauder Companies 5.1%
Information Tech 19.0% UnitedHealth Group 4.7%
Health Care 14.2% EOG Resources Inc. 4.6%
Industrials 13.8% Intuit Inc. 4.5%
Consumer Discretion 13.2% TJX Companies 4.4%
Fortive Corp. 4.3%
Geographic Allocation: Nidec Corp. 4.3%
United States 62.5% Taiwan Semiconductor Mfg 4.1%
United Kingdom 9.4% Danaher Corp. 4.1%
Japan 5.3% Deutsche Post AG 4.0%
Netherlands 4.7% Alphabet Inc. A 3.9%
Taiwan 4.1% Roche Holding AG 3.8%
Please do not hesitate to contact us if you have any question or concerns.
Paul J. Borisoff
Senior Vice President
Portfolio Manager, Senior Investment Advisor
Paul J. Borisoff
BBA, CIM, FCSI, AIFP, RIAC
SVP, Portfolio Manager
Senior Investment Advisor