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Quarterly Investment Review Letter 2013 Q3

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Another Quarter has rolled around and we continue to hear the ground sound of the world economy.


  • China's government has ordered companies to close factories in 19 industries where overproduction has led to price-cutting wars, affirming its determination to push ahead with a painful economic restructuring despite slowing growth.

The industry ministry issued orders late Thursday to more than 1,400 companies to cut excess capacity that has led to financial trouble for manufacturers. The affected industries include steel, cement, copper and glass. It requires some companies to close outright.


The Cardinal Capital return for 20 years being 11.37% vs. the index at 8.1%, and the average Canadian Equity fund being 6.4% demonstrate the consistency of their Value approach.

  • The Conference Board’s consumer confidence index declined to 79.7, the weakest since May, from 81.8 a month earlier, the New York-based private research group said today. Uneven employment growth and limited pay increases in the United States may hold back consumer purchases, which make up about 70 percent of the world’s largest economy.

Monthly High Income Fund continues the consistency of capital preservation, strong income distributions and impressive risk adjusted returns. The respective one year 12.41% and two year 9.45% returns evidence the power of goals achieved.

  • Central reported that the Germany Central Bank this past quarter authorized a bond issue with a negative return. Yes, that's right. Unheard of, but the stunning message is simply that not all pundit minds are bending to the non- rational dream of rising interest rates. Preservation of capital and consistency of income are king!
  • IMF Managing Director Christine Lagarde chided Turkey, warning that a ballooning trade deficit leaves the country a prime candidate for capital flight as the US Federal Reserve starts to withdraw global liquidity.

Disruption, uncertainty and the otherwise unknown abound around us. The Value Style as delivered to portfolios by Manulife and Cardinal are a refreshingly consistent “you can sleep well” departure.


Consistency is not everything but it is right up there with oxygen.