Watchful Eye | April 2015 Dear Reader, Markets Summary: Quarter End (in CAD): We propose a few articles that might help you for the numerous projects you may have at the beginning of this year. The French version "Le Regard Averti" includes an article published in the February edition of "Avantages" magazine authored by Frédéric Belhumeur, Senior Partner here at Pensul. The volatility peaks of November 2014 were tested during the first three months of this year. While the returns for most assets classes were positive, this volatility could go the other way and test the resilience of your investment portfolios. Please keep in mind that a sound portfolio structure is often the best defense in volatiles times. We would also like to welcome Michaël Beaupré in the analyst, performance measurement position.Welcome to the team Michaël! Happy reading! The Pensul team. Telephone: 514.288.5900 | 1.877.702.5900 E-mail: info@pensul.com 1Mo QTD 2014 FTSETMX Univ. -0.3% 4.2% 8.8% S&P TSX -1.3% 3.1% 10.6% S&P 500 -0.3% 2.3% 24.0% MSCI World -0.2% 11.9% 14.5% About us : Performance 360° Best practices© Asset Allocation Performance Measurment Investment Dashboard Compliance Monitoring© Lesson of the Oil Collapse? Database Do you own credit homework or The plunge in oil prices has hurt many highly-leveraged energy companies and their creditors. But it also reinforced an important lesson that investors and asset managers probably learned when they were schoolchildren: Always do your own homework. www.pensul.com Quarterly Newsletter Headlines Lesson of the Oil Collapse? How Scary the Bond Market? Manage liquidity risk How Scary is the Bond Market? The prices of long-term government bonds have been running very high in recent years All of these yields have since moved slightly higher, but they remain exceptionally low. It seems puzzling - and unsustainable - that people would tie up their money for 20 or 30 years to earn little or nothing more than these central banks' 2% target rate for annual inflation. How to Use a Buffer to Manage Liquidity Risk Two different methods for managing the liquidity risk of a fund of direct (less liquid) investments. The first method for managing the liquidity of the fund would be to include a cash buffer, which supports liquidity requirements. The fund manager determines the amount of liquidity required based on historical analysis of redemption requests and may implement stress testing for requests that are higher than normal. Pensul Inc. | 2075 Robert-Bourassa | Suite 460 | Montréal | Québec | H3A 2L1 | Canada