PIM: SRI Core Income and Growth Portfolio
Paul Borisoff - Sep 12, 2018
PIM: SRI Core Income and Growth Portfolio – September 10th, 2018
The SRI Core Income and Growth Portfolio* was up 0.4% in August - leaving the portfolio up 3.7% in 2018 – and up 10.8% over the last year. In comparison our benchmark was up 0.7% in August – leaving it up 5.3% in 2018 – and up 12.2% 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.
Canadian bond market (FTSE/TMX Canada Universe Bond Index) was up 0.8% in August– and is now back into positive territory in 2018 (up 0.6%). Over the last twelve months bonds are up 1.3% – compared to the last three-year average return of 1.9% per year. We still do not see much room for improvement going forward on this asset class – with the possibility of negative returns over certain periods if rates move sharply higher.
The Canadian stock market (S&P/TSX Composite Total Return Index) moved in the opposite direction in August - down 0.8% – leaving it now up 2.3% in 2018. Over the last year the Canadian market is up 10.1%.
In contrast the MSCI World Net (USD) Index (50% of our benchmark) was up 1.6% in August – and is now up 9.0% in 2018. Over the last twelve months this index is up 17.9% (after adjusting for the Canadian dollar impact).
The Canadian dollar moved slightly lower in August – to $0.7669 CAD/USD from $0.7687 at the end of July – and down from $0.7948 at year-end 2017. A year ago (end of August 2017) the Canadian dollar closed at $0.8010 CAD/USD – and the decrease over the last twelve months has provided a boost to our non-Canadian holdings.
Asset Allocation – August 31st, 2018:
6.8% Cash, 15.4% Fixed Income, 28.7% Canadian Equity, 49.1% Global Equity.
We did not make any changes to the portfolio in June. 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