October 2017 Investment Performance, New Address

October 2017 Investment Performance, New Address

New Address

On November 1, 2017, we moved into our new offices in the financial district’s Exchange Tower. Ironically, I started my investment career 18 years ago in this same building while working a Co-Op term at The Toronto Stock Exchange. In addition, our custody partner National Bank Independent Network is also located in The Exchange Tower.

Please update your records with our new address as follows:

AFINA Capital Management Inc.
130 King Street West, Suite 1800
The Exchange Tower
Toronto, ON M5X 1E3

Investment Update

We maintained our cautious portfolio positioning in October, while equity markets in general were quite strong. The AFINA Optima10 currently has a cash weighting of 24% while the AFINA Affinity has cash of 56%. In the absence of finding attractive investment opportunities, we remain comfortable with our conservative portfolio positioning.

Value technology performing well in November. Thus far in November, key holdings in both portfolios have had solid performance with AFINA holding Qualcomm (QCOM) receiving an unsolicited takeover bid from Broadcom (AVGO) earlier this week, while another holding Synaptics (SYNA) had strong results and underscored our thesis on its valuable portfolio of mobile products, in addition to its growing offering of Internet of Things (IoT) technology that is capable of producing solid free-cash-flow.

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

  • The AFINA Optima10 was down 0.9% in October, and was up +23.9% in 2016 compared to the benchmark return of 14.8%.
  • The AFINA Affinity was down 0.2% in October, and was up +20.6% in 2016 compared to the benchmark return of 14.8%.

 

Instruments (% return)Oct. 201720172016
AFINA Affinity(0.2)(1.7)20.6
AFINA Optima10(0.9)(3.5)23.9
Benchmark (1)4.09.514.8

As of October 31, 2017. All figures are net of fees and other expenses. Past performance is not indicative of future results. Refer to https://www.afinacapital.com/legal/ 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.