SIC Multi Asset Institutional Composite
|August 2020||Year to Date|
* 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
Global equity markets, as represented by the MSCI World Index, gained 3.8% in August led, once again, by US large cap equities (+4.6%) which were in turn powered primarily by the five FAANG stocks. Canadian equities performed well (+2.4%) with monthly leadership provided by two heavyweight Canadian sectors – financial services and energy – both of which were up more than 6% on the month. Non-North American equity markets were mostly positive in August with Germany and Japan being the largest contributors.
For August, the SIC Multi Asset Institutional Composite performed in line with the benchmark but remained behind on a year to date basis. It is remarkable that risk assets (such as equities and commodities) continued to add significant value despite the financial and fiscal dislocations caused by the spring economic shut down. The next four months will remain a challenge for investors as the course of COVID-19 infections and the outcome of the US Presidential election, could cause significant ripples across the capital, commodities and foreign exchange markets. As has been proven repeatedly in the past, a globally diversified balanced portfolio should prove its merit under such trying circumstances.