SIC Multi Asset Institutional Composite

 October 2020Year to Date
SIC Institutional-1.6%-1.4%

* 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

Investors were in a selling mood again in October as a regional resurgence in COVID-19 cases and heightened anxiety over the US Congressional and Presidential elections, prompted a second consecutive month of negative portfolio returns.  For the month, the SIC Multi Asset Institutional Composite declined by 1.6% which was ahead of the benchmark.  Of particular note was the positive contribution from our emerging markets allocation as accelerating Asian economic growth and continued low COVID-19 infection rates buoyed investor confidence.    

While the US election has created an entertaining distraction, the outcome is essentially irrelevant as long as the pandemic continues to restrain global economies.  We believe that all governments will continue to be generous with fiscal policy through at least calendar 2021.  As a result, equities remain the asset class of choice albeit with above average volatility.

Terry Shaunessy
James Garcelon