CIO Update - quiconline.com · 2 Legal Disclaimer The information in this document is for EDUCATIONAL and NON-COMMERCIAL use only and is not intended to constitute specific legal,

January 9, 2017

CIO UpdatePerformance Report

2

Legal Disclaimer

The information in this document is for EDUCATIONAL and NON-COMMERCIAL use only and is not

intended to constitute specific legal, accounting, financial or tax advice for any individual. In no event will

QUIC, its members or directors, or Queen’s University be liable to you or anyone else for any loss or

damages whatsoever (including direct, indirect, special, incidental, consequential, exemplary or punitive

damages) resulting from the use of this document, or reliance on the information or content found

within this document. The information may not be reproduced or republished in any part without the

prior written consent of QUIC and Queen’s University.

QUIC is not in the business of advising or holding themselves out as being in the business of advising.

Many factors may affect the applicability of any statement or comment that appear in our documents to

an individual's particular circumstances.

© Queen’s University 2017

January 9, 2017

CIO UpdatePerformance Report – Consolidated Fund

Portfolio Management Statistics

As at January 6, 2017

Canadian Fund U.S. Fund

Asset Value: February 26, 2016 $659,044 Asset Value: February 26, 2016 $148,746

Additional Contributions $500 Additional Contributions $95,512

Less: Cost of Capital ($26,302)

Proceeds from: Proceeds from: $0

Dividends $16,395 Dividends $3,027

Interest $0 Interest $0

Capital Gains Capital Gains

Realized $35,132 Realized ($2,644)

Unrealized $110,462 Unrealized $33,673

Less: Brokerage Fees ($4,361) Less: Brokerage Fees ($1,268)

Less: Operating Expenses $0 Less: Operating Expenses $0

Current Asset Value - $CAD $790,870 Current Asset Value - $US $277,046

Current Asset Value - $CAD (1) $366,028

Combined - Current Asset Value - $CAD $1,156,898

Combined - Absolute Return (2) 19.7%

(1) Exchange Rate - CAD/USD: 1.321

(2) Absolute Return is net of additional contributions,

and excl. FX gains

(Note) CAD/USD appreciation since February 26, 2016: (2.5%)

Sources: Capital IQ. 4

Portfolio Overview – 2016/2017 Fiscal Year (Consolidated)

The QUIC Fund currently has consolidated total assets of $1,156,898 (CAD) implying a total return for

the fiscal year of 19.7%

January 9, 2017

CIO UpdatePerformance Report – Canadian Fund



Asset Value: February 26, 2016 $659,044 Fund Cost of Capital (to date) 4% annually 3.44%

Additional Contributions $500 Portfolio Yield 1.91%


Proceeds from:

Dividends (1) $16,395 Portfolio Beta (3) 0.91

Interest (1) $0 Sharpe Ratio (4)(5) 3.35

Capital Gains

Realized $35,132 Market Return (6) 24.29%

Unrealized $110,462 Fund Outperformance (7) 0.14%

Less: Brokerage Fees ($4,361) Portfolio Alpha (4)(8) 2.22%

Less: Operating Expenses $0 Information Ratio (9) 0.04

Current Asset Value (2) $790,870 Portfolio Return 24.44%

(1) Dividends and interest are recognized on a cash basis (3) Covariance of daily returns with the TSX divided by the TSX daily variance

(2) Does not reflect the accrual of the fund's cost of capital to date (4) Uses 1-year Canadian Treasury rate (rf) of 0.50%

(5) Our returns above rf divided by the standard deviation of returns

(6) TSX Total Return Index

(7) Our returns less the market returns

(8) Our excess returns (above rf) less our beta times the market's excess return

(9) Annualized outperformance divided by the fund's tracking error relative to the TSX


Portfolio Overview – 2016/2017 Fiscal Year

The QUIC Fund currently has total assets of $790,870 implying a total return for the fiscal year of 24.4%,

with a portfolio alpha of 2.2%

24.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

29-Feb-16 30-Mar-16 29-Apr-16 29-May-16 28-Jun-16 28-Jul-16 27-Aug-16 26-Sep-16 26-Oct-16 25-Nov-16 25-Dec-16

QUIC Fund TSX Benchmark QUIC Fund TSX Benchmark

24.4%



The QUIC Fund currently has total assets of $790,870 implying a total return for the fiscal year of 24.4%,




Asset Value: September 17, 2010 $500,000 Fund Cost of Capital (to date) 4.00%

Additional Contributions $135,494 Portfolio Yield 1.91%


Proceeds from:


Interest (1) $3,542 Sharpe Ratio (4)(5) 4.03

Capital Gains

Realized $118,662 Market Return (6) 53.22%

Unrealized $98,034 Fund Outperformance (7) 8.22%

Less: Brokerage Fees ($27,993) Portfolio Alpha (4)(8) 18.02%

Less: Operating Expenses ($4,898) Information Ratio (9) 0.19


(1) Dividends and interest are recognized on a cash basis

(3) Covariance of daily returns with the TSX divided by the TSX daily

variance

(2) Does not reflect the accrual of the fund's cost of capital to date (4) Uses 1-year Canadian Treasury rate (rf) of 0.50%


(6) TSX Total Return Index



(9) Annualized outperformance divided by the fund's tracking error relative to the TSX


Portfolio Overview – Since Inception

The QUIC Fund currently has total assets of $790,870 implying a total return since inception of 61.4%,




The QUIC Fund currently has total assets of $790,870 implying a total return since inception of 61.4%,


61.4%

53.2%

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

17-Sep-10 17-Feb-12 17-Jul-13 17-Dec-14 17-May-16

QUIC Return TSX Return

Company Name Symbol Share Average Market Percent Stop-Loss Target Market Portfolio TSX Active

Units Cost Price Return Hard Soft Price Value Weighting Weighting Weighting

Royal Bank of Canada RY 800 $60.75 $92.72 52.6% $60.00 $65.00 $83.00 $74,176 9.4% 5.9% 3.5%

The Toronto-Dominion Bank TD 1,030 44.45 67.35 51.5% 40.00 42.00 59.00 69,371 8.8% 5.3% 3.4%

Canadian Natural Resources Limited CNQ 1,502 37.50 43.14 15.0% 30.00 32.00 47.00 64,796 8.2% 2.0% 6.2%

Manulife Financial MFC 1,900 19.84 24.34 22.7% 18.00 19.00 24.00 46,246 5.8% 2.0% 3.8%

Seven Generations Energy VII 1,328 28.75 29.76 3.5% 23.30 24.75 34.89 39,521 5.0% 0.4% 4.6%

ONEX Corporation ONEX 400 86.18 88.80 3.0% 40.00 42.50 64.00 35,520 4.5% 0.4% 4.1%

Canadian Energy Services CEU 4,233 4.86 7.79 60.4% 3.00 3.50 7.00 32,975 4.2% 0.1% 4.1%

Loblaw Companies L 459 57.77 70.51 22.1% 45.00 50.00 63.00 32,364 4.1% 1.2% 2.9%

The Bank Of Nova Scotia BNS 421 57.17 76.59 34.0% 53.00 55.00 74.00 32,244 4.1% 3.9% 0.1%

Tourmaline Oil TOU 891 39.94 33.85 (15.2%) 40.00 48.00 67.00 30,160 3.8% 0.4% 3.4%

Canadian National Railway CNR 272 86.44 91.45 5.8% 69.70 73.80 90.50 24,874 3.1% 3.0% 0.2%

Enercare ECI 1,265 15.59 17.90 14.8% 13.10 13.80 19.00 22,644 2.9% 0.1% 2.8%

Franco Nevada Corporation FNV 257 55.17 81.08 47.0% 48.00 50.00 110.00 20,838 2.6% 0.6% 2.0%

TELUS Corporation T 452 33.68 44.08 30.9% 34.00 35.00 42.00 19,924 2.5% 1.1% 1.4%

Metro MRU 453 40.54 39.63 (2.2%) 32.00 34.00 47.00 17,952 2.3% 0.4% 1.9%

ProMetic Life Sciences PLI 7,905 2.29 2.15 (6.0%) 1.50 2.00 3.00 16,996 2.1% 0.1% 2.1%

Bell Canada Enterprises BCE 259 52.87 58.56 10.8% 39.50 42.00 60.00 15,167 1.9% 2.2% (0.3%)

K-Bro Linen KBL 350 37.60 42.37 12.7% 32.00 34.00 47.00 14,830 1.9% ‐ 1.9%

Teck Resources Limited TECK.B 521 31.13 27.84 (10.6%) 20.00 23.00 32.20 14,505 1.8% 0.7% 1.1%

BlackBerry Limited BB 1,195 9.52 9.47 (0.5%) 8.08 7.61 10.70 11,317 1.4% 0.2% 1.2%

CCL Industries CCL.B 40 216.01 256.94 19.0% 140.00 150.00 250.00 10,278 1.3% 0.4% 0.9%

Silver Wheaton Corp. SLW 374 26.08 26.85 3.0% 19.00 22.00 30.70 10,042 1.3% 0.5% 0.8%

Tahoe Resources THO 653 16.40 12.73 (22.4%) 8.00 9.50 24.00 8,313 1.1% 0.2% 0.9%

Lundin Mining LUN 979 5.21 7.08 35.9% 3.50 4.00 7.00 6,931 0.9% 0.2% 0.7%

Goldcorp Inc. G 311 24.64 19.33 (21.6%) 17.00 19.00 38.50 6,012 0.8% 0.7% 0.1%

Riocan REIT REI.UN 186 24.86 27.08 8.9% 19.00 22.00 28.50 5,037 0.6% 0.4% 0.3%

Killam Properties REIT KMP.UN 417 11.97 12.03 0.5% 10.18 10.78 15.00 5,017 0.6% ‐ 0.6%

DH Corporation DH 214 35.68 22.44 (37.1%) 27.50 29.50 36.00 4,802 0.6% 0.1% 0.5%

Allied Properties REIT AP.UN 113 33.66 35.64 5.9% 25.00 28.00 37.00 4,027 0.5% 0.1% 0.4%

Pure Industrial REIT AAR.UN 642 5.09 5.60 10.1% 8.08 7.61 10.70 3,595 0.5% 0.1% 0.4%

Canadian REIT REF.UN 66 41.86 47.29 13.0% 34.00 36.00 49.50 3,121 0.4% 0.1% 0.2%

Total $703,594 89.0%

Sources: Capital IQ. As at January 6, 2017. 10

Current Positions

11

Recent Trades

Trades executed since last update:

Energy & Utilities

Dividend: CNQ

Financials

None

TMT

Dividend: DH, T

Cash Yield

None

Metals & Mining

Dividend: TECK.B

Industrials

Dividend: CNR

Consumers & Healthcare

Dividend: L, ECI

January 9, 2017

CIO UpdatePerformance Report – U.S. Fund



Asset Value: February 26, 2016 $148,746 Fund Cost of Capital (to date) 0.00%

Additional Contributions - Current FY $95,512 Portfolio Yield 0.60%

Proceeds from:



Capital Gains

Realized ($2,644) Market Return (6) 17.91%

Unrealized $33,673 Fund Outperformance (7) (2.37%)

Less: Brokerage Fees ($1,268) Portfolio Alpha (4)(8) (1.40%)

Less: Operating Expenses $0 Information Ratio (9) (1.32)


(1) Dividends and interest are recognized on a cash basis (3) Covariance of daily returns with the S&P 100 divided by the S&P 100 daily variance

(2) Does not reflect the accrual of the fund's cost of capital to date (4) Uses risk-free rate (rf) of 1-year US T-bill yield: 0.62%


(6) S&P 100 Total Return Index



(9) Annualized outperformance divided by the fund's tracking error relative to the S&P100

Sources: Capital IQ. All figures are in USD. 13


The QUIC U.S. Fund currently has total assets of $277,046 implying a total return for the fiscal year of

15.5%, with a portfolio alpha of (1.4%)

15.5%

17.9%

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

29-Feb-16 30-Mar-16 29-Apr-16 29-May-16 28-Jun-16 28-Jul-16 27-Aug-16 26-Sep-16 26-Oct-16 25-Nov-16 25-Dec-16

QUIC Return S&P 100 Return



The QUIC U.S. Fund currently has total assets of $277,046 implying a total return for the fiscal year of




Asset Value: October 3, 2014 $68,085 Fund Cost of Capital (to date) 0.00%

Additional Contributions $182,252 Portfolio Yield 0.60%

Proceeds from:



Capital Gains

Realized ($733) Market Return (6) 19.01%

Unrealized $23,821 Fund Outperformance (7) (5.24%)

Less: Brokerage Fees ($1,444) Portfolio Alpha (4)(8) (4.28%)

Less: Operating Expenses $0 Information Ratio (9) (0.62)


(1) Dividends and interest are recognized on a cash basis (3) Covariance of daily returns with the S&P 100 divided by the S&P 100 daily variance

(2) Does not reflect the accrual of the fund's cost of capital to date (4) Uses risk-free rate (rf) of 1-year US T-bill yield: 0.62%


(6) S&P 100 Total Return Index



(9) Annualized outperformance divided by the fund's tracking error relative to the S&P100



The QUIC U.S. Fund currently has total assets of $277,046 implying a total return since inception of


13.8%

19.0%

(8.0%)

0.0%

8.0%

16.0%

24.0%

3-Oct-14 3-Mar-15 3-Aug-15 3-Jan-16 3-Jun-16 3-Nov-16

QUIC Return S&P 100 Return



The QUIC U.S. Fund currently has total assets of $277,046 implying a total return since inception of


Company Name Symbol Share Average Market Percent Dividend Stop-Loss Target Market Portfolio

Units Cost Price Return Yield Hard Soft Price Value Weight

Schlumberger Limited SLB 232 $79.09 $86.48 9.3% 2.3% $62.00 $66.00 $96.00 $20,063 7.2%

The Home Depot, Inc. HD 133 $132.43 $133.53 0.8% 2.1% $114.00 $120.00 $145.00 $17,759 6.4%

Merck & Co., Inc. MRK 285 $55.21 $60.27 9.2% 3.1% $43.50 $45.00 $62.00 $17,177 6.2%

Mondelez International, Inc. MDLZ 380 $42.72 $45.06 5.5% 1.7% $35.00 $37.00 $53.00 $17,123 6.2%

The Walt Disney Company DIS 156 $100.51 $108.98 8.4% 2.9% $77.00 $82.00 $99.00 $17,001 6.1%

Union Pacific Corporation UNP 151 $98.35 $103.19 4.9% 2.1% $90.00 $100.00 $145.00 $15,582 5.6%

JPMorgan Chase & Co. JPM 173 $64.13 $86.12 34.3% 2.2% $50.00 $55.00 $71.50 $14,899 5.4%

Google Inc. GOOGL 18 $724.82 $825.21 13.9% 0.0% $640.00 $675.00 $811.00 $14,854 5.4%

Facebook, Inc. FB 115 $90.01 $123.41 37.1% 0.0% $75.00 $80.00 $99.00 $14,192 5.1%

Microsoft Corporation MSFT 210 $47.31 $62.84 32.8% 2.5% $39.00 $42.00 $52.00 $13,196 4.8%

McDonald's Corporation MCD 108 $125.83 $120.76 (4.0%) 2.9% $107.00 $113.00 $139.00 $13,042 4.7%

Starbucks Corporation SBUX 224 $55.49 $57.13 3.0% 1.8% $45.00 $50.00 $62.00 $12,797 4.6%

Amazon.com, Inc. AMZN 16 $767.31 $795.99 3.7% 0.0% $614.00 $652.00 $883.00 $12,736 4.6%

Visa Inc. V 141 $79.54 $82.21 3.4% 0.8% $67.50 $70.00 $90.00 $11,592 4.2%

Celgene Corporation CELG 91 $113.13 $119.64 5.8% 0.0% $125.00 $130.00 $174.00 $10,887 3.9%

Citigroup Inc. C 176 $53.57 $60.55 13.0% 1.1% $45.00 $50.00 $62.50 $10,657 3.8%

MetLife, Inc. MET 127 $48.37 $54.18 12.0% 3.0% $42.50 $45.00 $60.00 $6,881 2.5%

3M Company MMM 37 $151.81 $178.23 17.4% 2.5% $125.00 $130.00 $174.33 $6,595 2.4%

Morgan Stanley MS 128 $32.34 $43.85 35.6% 1.8% $30.00 $33.00 $41.00 $5,613 2.0%

Monsanto Company MON 26 $111.91 $108.13 (3.4%) 2.0% $95.00 $100.00 $126.50 $2,811 1.0%

Total $255,457 92.2%

Sources: Capital IQ. As at January 6, 2017. 17

Current Positions

18

Recent Trades

Trades executed since last update:

Energy & Utilities

None

Financials

None

TMT

None

Cash Yield

None

Metals & Mining

None

Industrials

None

Consumers & Healthcare

None

Documents

CIO Update - quiconline.com · 2 Legal Disclaimer The information in this document is for EDUCATIONAL and NON-COMMERCIAL use only and is not intended to constitute specific legal,