Purpose Total Return Bond Fund November Commentary

Fund Commentary

The Fund tactically allocates across the credit spectrum including high yield, investment grade, government bonds, and cash. The Fund was positive in November as corporate and government bonds rallied higher. The allocation to investment grade corporates was the best performer.
The current portfolio is positioned to benefit from increasing demand for corporate debt, with a tilt towards high yield over investment grade debt.
The Fund decreased its allocation to investment grade corporates from 47% to 38%, and increased its allocation to high yield from 46% to 55%.

Market Commentary

Stocks moved higher this month. In the U.S., generally strong data continued to support a positive economic outlook for 2015, and widen the economic gap between the U.S. and other developed countries. Conversely, Japan and Europe saw weakening economic data which prompted the BOJ and ECB towards even more aggressive stimulus measures in order to fend off deflationary pressures. In addition, the Bank of China unexpectedly cut rates to improve liquidity sending global stocks higher. Commodities were under pressure all month highlighted by an 18% plunge in crude prices. The end of month OPEC meeting was pointed to as a potential catalyst for stemming the fall in prices; however OPEC kept its production ceiling unchanged escalating its price war with other oil producing nations. The U.S. dollar pushed higher this month in particular against the Japanese Yen and currencies from commodity exporting nations. The loonie sold off in tandem with oil prices as USD/CAD closed at the year highs above 1.1400.

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