Thought Leadership

Multicurrency Commentary 1st Quarter 2010

May 4, 2010

In our prior commentary, we highlighted the following themes:

Economic and financial headwinds in the Eurozone

Overpriced risk assets

The need for a defensive position

During the first quarter we continued to maintain a defensive posture in our strategy.  We further reduced our exposure to the euro.  Impressed by the resilience of the Canadian economy, the recovery of its commodity export markets, and the strength of its financial system, we increased exposure to the Canadian dollar.  The Canadian dollar is increasingly serving two roles in our portfolio strategy: fulfilling both its original function as a commodity beneficiary as well as evolving into a safe haven currency.