February 2019 Report

 SIC Multi Asset Institutional Composite

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

Global equity markets continued to advance in February as investor sentiment was buoyed by a more sanguine US Federal Reserve.  Canadian equities remained in the spotlight supported by strength in the financial, energy and industrial sectors.  It remains to be seen, however, if Canada can continue to lead global equities given the muted results from the major banks in the first quarter and the recent setbacks witnessed in crucial pipeline approvals in Canada and the US.

As the table above illustrates, the performance of the SIC Multi Asset Institutional Composite in February was marginally below that for the benchmark. This was due primarily to our current underweight allocation to Canadian equities.  On a year to date basis, the Institutional Composite remained ahead of the benchmark.  Equally weighted US and European index ETFs as well as our tilt to Global Base Metals were responsible for this outperformance.  A 3.6% year to date increase in the Canadian dollar has weighed on the Institutional Composite, which is 55% invested outside of Canada.  We believe, however, that seasonal factors combined with a soft 2019 Canadian economy could put downward pressure on the Canadian dollar for the balance of the year.

Terry Shaunessy
James Garcelon