SIC Multi Asset Institutional Composite

 

July 2018

Year to Date

SIC Institutional

1.3%

3.4%

Benchmark*

0.8%

3.4%

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

 

Supported by robust Q2 corporate profits, the second half of 2018 kicked off with a strong showing in global equity markets.  The S&P 500 Index led the way.  However, unlike the first six months of 2018, when US equity performance was dominated by the FANG stocks, July saw a rotation in sector leadership in the S&P 500 to industrials, financials and healthcare.  European stocks also fared well with the Euro 350 rising by over 3% for the month supported by healthcare, financials and telecom.  The S&P/TSX Composite Index was up 1.2% for the month but lagged the MSCI World Index.  Other noteworthy developments in July were the jump in the Canadian dollar on higher Bank of Canada interest rates and negative monthly returns for the Canadian bond aggregate.

For July, the SIC Multi Asset Institutional Composite outpaced the benchmark.  This outperformance was due to our emphasis on non-Canadian capital markets notwithstanding the strong Canadian dollar reduced the overall portfolio return by about 0.5%.  On a year to date basis, the Institutional Composite’s investment results were in line with the benchmark despite concerns over global trade and political ambiguities in Washington.

 

Terry Shaunessy
James Garcelon