September 2017 Investment Performance

September 2017 Investment Performance

Equity markets rebounded in September, with US equities hitting new all-time highsWhile we believe the current bull market may have another several years of momentum, the current valuations have us sitting with higher levels of cash than usual. The AFINA Affinity portfolio has a cash weighting of 54% and the AFINA Optima10 portfolio has a cash weighting of 24%.

We are waiting for our pitch. While we recognize we may under-perform our benchmark in the short-term with higher levels of cash, being patient and using market weakness as a buying opportunity can help us generate above-average returns over the medium and long-term. Using a baseball analogy, we don’t need to swing at each pitch. We swing at the pitches that are in our sweet spot and we have a higher probability of generating a solid hit, or in our case strong investment returns for our clients, if we are patient.

During September, we sold our positions in Michael Kors (KORS). The stock has increased 30% since the end of July and it reached our target price. Our other top performing stocks during September were Gluskin Sheff + Associates (GS), CIBC (CM) and National Bank of Canada (NA). The bottom performers were Bed, Bath & Beyond (BBBY) and Synaptics (SYNA).

An overview of the performance of our actively-managed products is as follows:

  • The AFINA Optima10 was up +1.6% in September, and was up +23.9% in 2016 compared to the benchmark return of 14.8%.
  • The AFINA Affinity was up +1.6% in September, and was up +20.6% in 2016 compared to the benchmark return of 14.8%.


Instruments (% return)Sep. 201720172016
AFINA Affinity1.6(1.5)20.6
AFINA Optima101.6(2.6)23.9
Benchmark (1)2.55.314.8

As of September 30, 2017. All figures are net of fees and other expenses. Past performance is not indicative of future results. Refer to for full details and disclosures.
(1) The benchmark represents a 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.