PIM: Diversified Income Portfolio
Paul Borisoff - Jan 09, 2018
The Diversified Income Portfolio* was up 10.6% in 2017 - significantly outperforming our benchmark which was up 4.6%. In December the portfolio was up 1.1% while our benchmark was unchanged (0.0%).
* 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.
Recent Portfolio Changes:
Our 0.8% position in the NorthWest Health 7.50% 30SEP18 Convertible Debenture which we originally purchased at par value (100) in August 2013 was redeemed early by the company at 100 in December. Note, we continue to hold a 0.8% position in the NorthWest Health 7.25% 31OCT19 Convert.
At month-end the portfolio’s cash position was sitting at ~7.1% and our convertible debenture exposure was approximately 35.8%. Total Cash and Fixed Income exposure including our four 3rd party specialty fixed income manager positions was ~69.2% at month-end.
We continue to strongly believe that the portfolio’s composition and flexibility offers a substantially improved risk/reward trade-off compared to an “income portfolio” relying only on government bonds and pure stock market exposure to drive returns and income.
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