Duckworth Asset Management Inc.

DUCKWORTH ASSET MANAGEMENT INC.

With this analysis it is to support investment strategies portfolio managed by Asset Managenent Duckworth in order to meet the concerns raised by CSSF

First of all we reviewed the portfolio diversification options. We are meeting the goals on the fixed income category; Canadian and American stocks. However we're just above the proposed cash percentage.

As far as the overall portfolio performance, for the past 4 years We've had an average Return on Investment of 8,18%, which was above the expected revenue, estimated around 6,2%. Nonetheless, if we analyze the returns obtained on each of the different type of assets, we're able to see -in the Canadian stocks category- that, despite having negative numbers within the past year, the last 4 years yielded an income of 13,67% on average. This is higher than the initial target for this type of asset (see exhibit 1).

On the other hand, even though we didn't  meet  the goal on the fixed earnings bonds category, which expected a 5,05% return, we were able to obtain a 4,25%. This shows A moderate advance that goes accordingly with this type of assets and their historical Revenue and volatility which rounded up near a 3,4%. 
In the cash kept proportion, We achieved a 3,65% revenue, Very close to the expected target of 3,83%.

Finally, the least satisfying results came from the investment made on American stocks. These are showing negative numbers, mainly due to this market's declining trend throughout the last year. 

This is confirmed by the expected higher volatility Associated with higher risk investments such as this. 

Considering the overall revenue results, but specially looking at the individual performances on each category, we suggest a different resource placement for our portfolio, one that can guarantee us that we can reach the objectives of the fund but with an adequate risk management. 

As a conclusion we recommend to maintain the percentage invested in Canadian stocks, which has historically shown an expected revenue of 8,9% with a level of volatility rounding up 16,7%.

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