Page 35 - April Report2022

Resilience
Investment/Finance Committee meeting minutes (4)
Last year
From Hedge Funds 4.7%
From Bonds -3.4%
Last 5 years
7.4%
1.2%
Last 10 years
6.5%
1.4%
Last 15 years
5.3%
3.4%
Table 4
JSF Annual Return
With a combined weighting of 23% in high quality hedge funds, fixed income and cash, Prime and the Committee feel these investments provide an adequate anchor to the portfolio.
4. Performance Update and Investment Outlook – Unlike 2021 the current year has started off with a very negative trend in risk asset returns. As of March 7, 2022 the S&P 500 is down about 12% on a year-to-date basis. According to Prime JSF has experienced a 6.8% negative investment return YTD lowering total assets by $20.4 mill to $267.2 mill. Relative performance, however, remains favourable. High and rising inflation, now near 8% on a headline basis, driven by supply shortages and rising commodity prices has increased the likelihood of substantial increases in interest rates, which in turn will continue to put pressure on equity valuations especially for growth stocks. The Russia/Ukraine war and its uncertain outcome has increased fear and uncertainty in the marketplace.
It is very difficult to predict future market returns over the short term. As stated over the last several quarters the Committee is nervous with a lot of volatility expected. Several portfolio changes recently have lowered the beta of the portfolio (I.e. Mangrove, Orbi-Med, Cat Rock redemptions). The Committee and Prime believe JSF’s portfolio is adequately diversified given the expected environment.
52.9 51.4 55.0
31.4 30.0 28.0
6.6 6.6 9.0
25.2 25.2 20.0
11.2 11.3 12.5
100 100 100
Table 5 Asset Allocation
Asset Class
Actual (%) Feb 24/22
Pro Forma post rebalancing (%)
Target (%)
Allowable Range (%)
Peer Group* (%)
Global Public Equity
Domestic US
Emerging Markets
Global Private Capital
Flexible Capital
Total Assets
* est. as at Dec 31/21
40-70 55
22-34 35 7-11 6
10-30 11
10-15 10
100
International Developed
14.9
14.8
18.0
12-22
14
Fixed Income/Liquid Capital
10.7
12.0
12.5
10-15
24
33