November 2018 Investment Performance

November 2018 Investment Performance

Global markets continue to experience volatility. The AFINA actively-managed products performed well in November and we believe the recent correction has largely run its course. There are positive signs that the China-US trade tensions are headed in the right direction, although the arrest of Huawei’s CFO has caused some short-term noise. Furthermore, the Bank of Canada (particularly with plummeting oil prices) and US Federal Reserve have shown signs that they will be slower and more patient in raising interest rates.

These developments will likely contribute to more calm market conditions as we head into early 2019. While we are bullish near-term, we still maintain our view that Canada and the US could be headed towards a recession by early 2020 if their respective Central Banks are too aggressive in raising interest rates, and we are taking a cautionary approach to portfolio positioning.

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

  • The AFINA Optima10 was up +5.7% in November. The Optima10 has a 5% cash weighting and a 4.2% dividend yield.
  • The AFINA Affinity was up +4.5% in November. The Affinity has a 3% cash weighting and a 3.1% dividend yield.

 

November 2018: AFINA Actively-Managed Portfolios
Instruments (% return) Nov. 2018 2018 2017 2016
AFINA Affinity 4.5 (0.9) 2.1 20.6
AFINA Optima10 5.7 (4.5) 3.3 23.9
Benchmark (1) 2.2 3.8 11.4 14.8

 

 

As of November 30, 2018. 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.