SIC Multi Asset Institutional Composite

November 2019 Year to Date
SIC Institutional 2.4% 14.0%
Benchmark* 2.3% 15.1%

* 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

Optimism was the watchword for November as investors directed capital to a broad range of equities.  While the US mega cap technology stocks continued to provide leadership in the S&P 500, both the financial services and healthcare sectors also outperformed the broad index resulting in a very good month for US equities.  Canadian equities also had a good November with the natural resource sectors (metals & energy) noticeably outperforming Canadian financials for the first time in recent memory.  For the month, the SIC Multi Asset Institutional Composite rose in line with the benchmark but made up little ground on a year to date basis.

As the year draws to a close, volatility has picked up on profit taking and concerns over global trade.  However, we do not expect global equity markets to experience a re-run of the “2018 holiday air pocket”.  2019 full year results should be close to the November year to date performance.  2020 will have its challenges with Brexit, China trade and the US election but so long as interest rates remain at historically low levels, stock markets are unlikely to see much turbulence.  The bottom line for us – a strategy of stocks over bonds with an overweight in international large cap equities continues to be the path of least resistance.

 

Terry Shaunessy
James Garcelon