April was generally a calmer month for equity markets with the theme of crude oil and commodity strength (and US dollar weakness) continuing from March.
One of the key holdings in the AFINA Affinity Fund and AFINA Optima10, Apollo Education (APOL), was sold in early May as it reached our price target given the probability of successful takeover approval increasing. A summary of the AFINA investment product performance is as follows:
- The AFINA Affinity Fund was down -1.7% in April and was up +7.9% for 2016. At the end of April, financials represented the largest sector weighting at 28.9%, followed by consumer/health care (25.2%), while the dividend yield of the AFINA Affinity Fund was 3.21%.
- The AFINA Optima10 was flat in April. The Optima10 currently has its largest weighting in financials (40%), consumer (20%), technology (20%) and cash (10%). The dividend yield at month-end in the AFINA Optima10 was 4.39%. We were excited to announce a reduction in fees starting June 1, 2016.
As of April 30, 2016. All figures are net of fees and other expenses. Past performance is not indicative of future results. Refer to afinacapital.com/legal/ for full details and disclosures.
(1) The AFINA Affinity Fund LP fully hedges its US dollar exposure. Accordingly, the AFINA Affinity Fund LP benchmark represents the 50% weighting of the S&P 500 Total Return Index in US dollars and a 50% weighting of the S&P/TSX Composite Total Return Index in Canadian dollars.
(2) The AFINA Optima10 Managed Account does not hedge its US dollar exposure. Accordingly, the AFINA Optima10 benchmark represents the 50% weighting of the S&P 500 Total Return Index in Canadian dollars and a 50% weighting of the S&P/TSX Composite Total Return Index in Canadian dollars.