MARQUEST WEEKLY COMMENTARY – JANUARY 25, 2016.

Liis Palmer, Cassels Investment Management Inc.

Global Balanced Fund

Last week the MSCI World Index was up 1.0 percent. The TSX was up 2.6 percent. The C$ was up 3.0 percent against the US$. The Marquest Global Balanced Fund A units closed at $16.59 compared with $16.48 the previous week.

Significant contributors to performance were United Health Group (up 5.6 percent), Home Depot (up 3.9 percent) and Arc Resources (up 15.4 percent).

Laggards were HDFC Bank (down 1.6 percent), our Pulte Group bond (down 2.7 percent) and our AutoCanada bond (down 2.9 percent). The high yield bond market was down last week. Funds flows were negative and yield spreads over Treasuries widened 11 basis points. Investor concerns are focused on the higher risk CCC area of the market and particularly the smaller resource borrowers where prices have dropped more than other corporate debt. However, the prices of our bonds were brought down as well.