SIC Multi Asset Institutional Composite

 November 2020Year to Date
SIC Institutional6.7%5.2%
Benchmark*6.6%7.5%

* 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

The combination of a Biden win in the US presidential election and major breakthroughs in COVID-19 vaccines produced one of the best months for global equities in recent memory.  The SIC Multi Asset Institutional Composite gained 6.7% for the month, which was in line with the benchmark. 

Over the next 12 months, the success of mass inoculation efforts in North America and Western Europe will dictate the speed with which global economies recover.  We suspect that a “post-COVID” 2021-22 economic environment will mirror that of past post-war recoveries.  Look for robust GDP growth owing to pent-up consumer demand, inventory restocking and a surge in employment.  Typically, periods like this are very good for corporate profits and equities and much less favourable for inflation and interest rates.  In keeping with this view, our primary asset allocation will remain maximum equities and minimum fixed income for the foreseeable future.        

Terry Shaunessy
James Garcelon