A Word from the Pembroke Team



In our written and verbal communications with our private clients, Pembroke continues to emphasize three cornerstones of our philosophy: Diversify, Take a Long-term view, and never try to time the markets. To support our philosophy, we have also released tools for our clients that include our Investor Profile Survey and our My3Bs behavioural finance survey (recently renamed the Intelligo survey).

Given our focus on the long-term, we believe that focusing on short-term results often provides little insight. For that reason, our newsletter will increasingly take a long-term view. This change will allow us to refocus our conversation on each portfolio’s strategy and positioning and on the longer-term trends of the past year.

Because the first quarter of 2022 was one in which growth stocks around the world significantly underperformed value stocks, and every Pembroke equity mutual fund underperformed its benchmark, we wanted to be very clear to our clients that our refocusing of Perspectives onto the longer term, more strategic issues, was in no way an attempt to avoid discussing the very challenging first quarter of 2022.

We are therefore including a table (Exhibit 1), with the first quarter 2022 performance of the Pembroke equity and fixed income mutual funds and their benchmarks. Now and in the future, when there is a meaningful development during a quarter, we will be sure to address it while continuing the emphasis on the long term.

This quarter, for example, we discuss the current supply chain issues resulting from continued COVID lockdowns in manufacturing countries, the impact on commodity prices of the war in Ukraine, the resultant surge in US and Canadian interest rates, and the declines in long-duration bond and equity assets.

Beyond these issues, though, we are trying to provide a more strategic discussion about what each of Pembroke’s funds is designed to achieve. The Perspectives newsletter allows our portfolio managers the opportunity to communicate directly with you and talk about their strategy and some of the sectors and stocks they have invested in to execute that strategy.

We hope that the more strategic, long-term focus will be a useful complement to the other tools Pembroke is providing you to help you succeed in meeting your investment objectives. That is how we measure success.


The Pembroke Team

Exhibit 1: First Quarter 2022 — A Challenging Period for Growth Stocks

Pembroke Funds and their Indices

Pembroke American Growth fund Inc. (CAD)-14.80
Russell 2000 Total return in CAD$-8.85
Pembroke American Growth Fund Inc. (USD)-13.56
Russell 2000 Total Return Index-7.53
Pembroke Canadian Bond fund-5.54
FTSE Canada Universe Bond Index-6.97
Pembroke Canadian Growth fund-7.22
S&P/TSX Composite Total Return Index3.82
Pembroke Corporate Bond Fund-2.56
FTSE Canada All Corporate Bond Index-6.45
Pembroke Global Balanced fund-5.41
Benchmark (45% MSCI All country World Index + 25% TSX Composite Index + 30% FTSE Canada All Corporate Bond Index)-4.21
Pembroke Canadian Balanced Fund4-0.49
Benchmark (60% TSX Composite Index +35% FTSE Canada Universe Bond Index + 5% FTSE Canada 91 Day T-Bill Index-0.21
Pembroke International Growth Fund-20.09
MSCI All Country World Index ex US Small Cap Index net of withholding tax in CDN$-7.56
Pembroke Concentrated Fund - Class A (CAD)2-16.95
Russell 2000 Total Return Index in CAD$-8.85
Pembroke Concentrated Fund - Class A (US)2-15.80
Russell 2000 Total Return-7.53

Performance is reported in Canadian dollars except where noted and net of transaction costs and net of all other fees, excluding management fees. Management fees are charged directly to securityholders based on their assets under management. Periods greater than one year have been annualized. Index returns do not incur management fees or operating expenses.
1 – Pembroke Canadian All Cap Pooled Fund was launched January 1, 2020 and made available to retail investors on March 25, 2021.

2 – From January 31, 2018 until April 1, 2020, Class A units of the Pembroke Concentrated Fund were distributed pursuant to an exemption from the prospectus requirement.

3 – Pembroke Global Equity Pooled Fund was launched on March 25, 2021.

4 – On March 25, 2021, Pembroke Growth and Income Fund was renamed Pembroke Canadian Balanced Fund.

Disclaimer: Commissions, management fees and expenses all may be associated with mutual and pooled fund investments. Please read the prospectus and/or offering documents before investing. Mutual and pooled funds are not guaranteed, their values change frequently and past performance may not be repeated.


Other Articles Of Interest


This report is for the purpose of providing some insight into Pembroke and the Pembroke funds. Past performance is not indicative of future returns. Any securities listed herein, are for informational purposes only and are not intended and should not be construed as investment advice nor is it a recommendation to buy or sell any particular security. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Pembroke seeks to ensure that the content of this document is correct and up to date but does not guarantee that the content is accurate and complete and does not assume any responsibility for this. Pembroke is not responsible for decisions or actions taken or made on the basis of information contained in this document.