SIC Multi Asset Institutional Composite


September 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


Returns in September were negative for both the SIC Multi Asset Institutional Composite and the benchmark.  In anticipation of a more challenging credit environment, we sold our currency hedged US high yield bond allocation during the month for a preferred position in short term investment grade bonds.  This trade has reduced yield but has improved the credit quality of the fixed income portfolio.

Year to date, performance for the Institutional Composite has fallen behind the benchmark as we continue to reduce our US equity allocation on market rallies and contend with the sizeable day-to-day fluctuations in the Canadian dollar.  We expect to be neutral weight US equities by year-end as the S&P 500 Index achieves fair value levels.  Despite recent weakness, we continue to overweight international equities on the basis of attractive valuation, superior future growth and investor apathy.

Historically, bull markets end when central banks reduce liquidity by raising short term interest rates.  In our opinion, this market cycle will not be any different.  Consequently, our investment outlook and portfolio allocations have switched from an emphasis on capital appreciation to capital preservation.


Terry Shaunessy
James Garcelon