Purpose Diversified Real Asset Fund March Commentary

Fund Highlights

  • Real assets jumped into positive territory for the year after a commodities rout earlier in the year followed by a sharp reversal in February and March. Gold is up +16.4% for the year and WTI crude oil rallied +13.6% in March alone (up +3.5% for the year).
  • Real estate and metals were the best performing asset sleeves this month. Real estate rallied on signs of reluctance from the Federal Reserve of further tightening of the economy. The materials complex also continued to rise with First Quantum and Teck Resources experiencing double digit returns.
  • Agriculture based equities was the only detracting sleeve from Fund performance with drought conditions in India reducing demand for fertilizers and nutrients.
  • The Fund completed a monthly commodities rebalance removing copper futures from the portfolio and bringing the total number of commodities held down to 5.
  • The Fund continued to hedge U.S. dollar currency exposure maintaining a net U.S. dollar exposure of approximately 7% of the Fund’s NAV.

Market Commentary
Markets retraced higher in March with the S&P recovering almost all its year to date losses. Oil bounced off the lows in anticipation of a meeting between OPEC and non-OPEC nations to discuss production freezes. US employment numbers continued to see strength which bolstered the argument for further Fed hikes this year, however Yellen surprised the market taking an abrupt dovish turn while citing recent financial developments in her reluctance to tighten further. As a result, the US dollar sold off broadly, credit tightened and risk assets rallied. In Canada, a poor jobs number was offset by an upward surprises to retail sales and GDP. The government also announced a budget deficit plan which would include a large infrastructure spending program aimed at stimulating more growth.

Return to Post Listing

Fields marked with an * are requiredLES CHAMPS MARQUÉS D'UN * SONT OBLIGATOIRES
Fields marked with an * are requiredLES CHAMPS MARQUÉS D'UN * SONT OBLIGATOIRES