Watchful Eye | April 2015

Watchful Eye |
April 2015
Dear Reader,
Markets Summary:
Quarter End (in CAD):
We propose a few articles that might help you for the numerous
projects you may have at the beginning of this year. The French
version "Le Regard Averti" includes an article published in the
February edition of "Avantages" magazine authored by Frédéric
Belhumeur, Senior Partner here at Pensul.
The volatility peaks of November 2014 were tested during the
first three months of this year. While the returns for most assets
classes were positive, this volatility could go the other way and
test the resilience of your investment portfolios. Please keep in
mind that a sound portfolio structure is often the best defense in
volatiles times.
We would also like to welcome Michaël Beaupré in the analyst,
performance measurement position.Welcome to the team
Michaël!
Happy reading!
The Pensul team. Telephone: 514.288.5900 | 1.877.702.5900 E-mail: [email protected] 1Mo QTD 2014 FTSETMX
Univ. -0.3%
4.2%
8.8%
S&P
TSX -1.3% 3.1% 10.6% S&P 500 -0.3% 2.3% 24.0% MSCI
World
-0.2%
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Performance 360°
Best practices© Asset Allocation
Performance
Measurment
Investment Dashboard
Compliance
Monitoring© Lesson of the Oil Collapse?
Database
Do you own credit homework
or
The plunge in oil prices has hurt many highly-leveraged energy companies
and their creditors. But it also reinforced an important lesson that investors
and asset managers probably learned when they were schoolchildren:
Always do your own homework.
www.pensul.com
Quarterly Newsletter Headlines
Lesson of the Oil Collapse?
How Scary the Bond Market?
Manage liquidity risk
How Scary is the Bond Market?
The prices of long-term government bonds have been running very high in
recent years All of these yields have since moved slightly higher, but they remain
exceptionally low. It seems puzzling - and unsustainable - that people
would tie up their money for 20 or 30 years to earn little or nothing more
than these central banks' 2% target rate for annual inflation.
How to Use a Buffer to Manage Liquidity Risk
Two different methods for managing the liquidity risk of a fund of direct
(less liquid) investments.
The first method for managing the liquidity of the fund would be to include
a cash buffer, which supports liquidity requirements.
The fund manager determines the amount of liquidity required based on
historical analysis of redemption requests and may implement stress testing
for requests that are higher than normal.
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