PIM: SRI Core Income and Growth Portfolio
Paul Borisoff - Jan 09, 2018
The SRI Core Income and Growth Portfolio* was up 12.8% in 2017 – compared to our benchmark which was up 10.3%. In December the portfolio was up 0.1% while our benchmark was down 0.3%.
* 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 dollar closed the year at $0.7948 CAD/USD - up from $0.7753 at end the end of November – a significant negative drag on our Global Equity positions in December.
Asset Allocation – December 31st, 2017:
5.0% Cash, 16.2% Fixed Income, 29.3% Canadian Equity, 49.5% Global Equity.
On December 18th we reduced our position in the BMO Long Provincial Bond Index ETF at $16.38 per unit – from 6.2% of the portfolio to 3.0%. While this sale realized a small 1.1% capital loss – the net gain was 3.0% since adding it to the portfolio in June of 2016. Our concern regarding an expected rise in long-term interest rates prompted us to make this change.
After reducing our BMO Long Provincial Bond Index ETF we increased our exposure to the NEI Global Total Return Bond Fund from 6.2% of the portfolio to 10.0%. Our upcoming quarterly commentary will have more on why we decided to make this change to the portfolio.
Please note that our next summary and quarterly commentary will be available by Monday, January 15th, 2018. In the meantime, please do not hesitate to contact me if you have any question or concerns.
Paul J. Borisoff
Senior Vice President
Portfolio Manager, Senior Investment Advisor