Recoverable.Determining how much of the Q2 equity loss of $1.7B is recoverable in Q3?
The three benchmarks MFC uses to gauge their sensitivity to the markets' movements are
The TSX, S&P 500 and TOPIX.
TSX.
Q1 ...March 31-TSX value was 12,037.73 basis.
Q3...Sept 30 -TSX value was 12,368.65 basis
TSX Q3 up over Q1 by 330.92 (2.75%)
S&P 500
Q1...March31.. valuation was 1,169.43 basis.
Q3...Sept 30...valuation was 1,141.20 basis
Q3 was down 28.23 basis (2.41%)
TSX gain of 2.75% should closely offset the the S&P 500 losses of 2.41%
Therefore most of the $1.7B should be recoverable at this point
TOPIX
The Asian markets represent about 14% of MFC total investments.
It is made up of China, Hong Kong, Japan Phillippines etc
So the Japanese TOPIX represents a tiny benchmark Index for MFC.
Its Q3 was 829,51 compared to 978.81 for Q1......A loss of 15%
Conclusion
With this tiny loss in TOPIX and applying MFC complex methodology
we should still recover over $1B of Q2 losses.
Only my opinion.