SIC Multi Asset Institutional Composite


June 2018

Year to Date

SIC Institutional






* 5% T Bills, 35% Canadian Bond Composite, 20% TSX Composite TRI, 20% S&P 500 C$ TRI, 20% MSCI EAFE (Net) C$ TRI


The SIC Multi Asset Institutional Composite increased by 0.3% in June, which was below the benchmark’s monthly return.   June’s underperformance is a result of our being underweight Canadian equities where the energy sector jumped on higher oil prices and our cyclical tilts (e.g. emerging markets and global base metals) which came under selling pressure as investor worries over global growth on the back of rising tariffs took center stage.  On a year to date basis, the Institutional Composite’s return also slipped marginally below the benchmark.

Mixed economic signals coming from the White House have shaken investor confidence especially in countries that are trade-oriented (Canada, Germany and China).  It is unclear, at this time, whether the Trump Administration is serious about escalating trade tensions or is merely posturing as part of a negotiating strategy.  Notwithstanding the confusing environment, US corporate earnings continue to be robust and US consumers are in great shape with low unemployment and modest levels of debt.  Interest rates are slowly rising but remain historically low.  Non-North American equity markets are attractively priced on a fundamental basis.  They represent good value relative to US large capitalization equities for those investors who can see through the current political uncertainties.  Consequently, we remain overweight equities with an emphasis on international developed markets.


Terry Shaunessy
James Garcelon