Purpose Diversified Real Asset Fund January Commentary

Market Commentary

Global stock markets pulled back sharply after closing out 2013 at the highs, as heightened emerging market volatility triggered a broad sell off across risk assets. Destabilizing events in Turkey and Argentina received the majority of the headlines. Furthermore, weaker Chinese manufacturing data pointing towards a slowdown also fuelled negative sentiment. As a result, foreign investment flows broadly exited the emerging market (EM) space and into safe havens such as bonds and gold. In the U.S., an unexpectedly poor payrolls number was at odds with recent upward trends in economic data. Despite the market turbulence, the Fed tapered an additional $10 billion, signaling that it was staying the course for an eventual exit from its QE program. In Canada, weak employment and trade data suggested that the BOC would maintain a dovish stance going forward.

Fund Commentary

The Fund holds a risk-balanced portfolio diversified across agriculture, energy, base metals, precious metals, and real estate. The Fund gained as real assets and dividend paying equities rallied during the month of January.

The Fund’s exposure to real assets experienced upside from precious metals and real estate while agriculture, energy and base metals declined during the month. The best performing commodity for the month was gold as physical gold and silver recovered during the month from multi-year lows. Copper was the worst performing commodity as the metal declined on increasing inventories and a Chinese economic slowdown signalled decreasing demand for the metal.

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