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Ethica Corp

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Ethica Corp.
Portfolio Management Final Report
April 5, 2016

Executive Summary

Client: Ethica Corp.
Investment Purpose: Invest $100,000 CAD in 5 stocks
Time Horizon: January 29, 2016 - March 24, 2016
Geographic Restrictions: Must include 2 Canadian stocks, 1 American stock, 1 European stock, and 1 Asian or African stock.
Investment Criteria: No sin stocks, no financials, no cross-listed stocks, strong CSR, no scandals, and debt levels of less than 40% of total assets.
Our chosen securities were: * YAHOO! Inc. * Canadian Utilities Limited * Alimentation Couche-Tard * NEC Corporation * Jungheinrich A.G.

After the selection process had been completed, we carefully monitored the behavior of each stock, as well as the exchange rates for the country they were operating in, anticipating future trades and rebalancing. We were able to do this by updating an Exchange Rate Matrix, as well as a Correlation Matrix, which had been constructed during the selection process and used as a decision making tool on scheduled transaction days.
Portfolio Performance
Ethica Corp.’s portfolio finished down -2.44% over its time horizon. Our unsatisfactory returns were largely due to poor performance in NEC, but were partially offset by a significant gain in YHOO. Jungheinrich rallied shortly before the end of our trading period, but provided a negative return as a result of an incorrectly timed sale of half its position. Canadian Utilities Limited and Alimentation Couche-Tard finished slightly below their purchase prices.

In order to benchmark performance, we chose to compare our portfolio to three relevant indexes - the TSX, MSCI World, and the NASDAQ. Global stock markets had generally strong performance over our time horizon. Ethica Corp. may had been better served by investing in a broad market fund over the same period. The Treynor

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