August was a quiet month for equities and the AFINA investment products continued to outperform in 2016.
We have been steadily increasing our cash allocation as valuations move higher. Furthermore, the risk is rising that market volatility increases heading into the US elections on November 8, 2016. The AFINA Optima10 is up to a 24% cash weighting while the AFINA Affinity Fund LP finished August with a 53% cash weighting.
A summary of the AFINA investment product performance is as follows:
- The AFINA Affinity was up +0.7% in August and up +14.1% in 2016. The dividend yield of the AFINA Affinity Fund was 2.70%.
- The AFINA Optima10 was up +2.9% in August and up +11.0% in 2016. The dividend yield in the AFINA Optima10 was 3.35%.
As of August 31, 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.