SIC Multi Asset Institutional Composite

  September 2019 Year to Date
SIC Institutional 1.0% 10.4%
Benchmark* 0.9% 11.8%

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

While historically a weak month, equity markets achieved positive performance in September.  This performance was led by international equities.  Investor optimism was driven by the favourable impact of lower interest rates from the US Federal Reserve and hopes that the US-China trade talks would take on a more productive tone.   For the month, the SIC Multi Asset Institutional Composite performed in line with the benchmark but continued to trail on a year to date basis.  This underperformance can be directly attributed to our preference for international equities (+10%) which have trailed US (+17%) and Canadian equities (+19%) so far this year.  We believe that international equities continue to represent good value based on traditional metrics (price to earnings ratio and dividend yield) and particularly so when compared to North American equities.  We expect that mean reversion of regional market returns will favour international over North American equities for the foreseeable future.

Terry Shaunessy
James Garcelon