Cardinal Quarterly

The following commentary is courtesy of Cardinal Capital Management Inc., the sub-advisor for the VPI Canadian Equity Pool and the VPI Canadian Income Pool. The opinions, market outlook, and asset allocation strategies are those used in the design of the mutual funds they manage that we utilize in client portfolios.

Market Outlook

By Timothy E. Burt, CFA

The stock market performed reasonably well in the first quarter with the best performance coming from the U.S. market (up 10.0% for the S&P 500) and the British market (up 8.7% for the FTSE-100). The Canadian market lagged behind, being up 2.5% (for the S&P/TSX). However, from mid-November 2012 to mid-March 2013, most of the major global stock markets were up around 16%, with the exception of the U.S. and Japan. They have since pulled back about 5% to their April 5 closing levels. This implies that we could be in a minor correction phase right now. Also during the first quarter of 2013, both the DJIA and the S&P 500 reached record highs, albeit on March 28 for the S&P 500.

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It is part of our due diligence process to closely monitor the asset managers who make the underlying investment selections within our clients’ portfolios. We always remain well informed of their opinions, forecasts, and investment philosophies.