SIC Multi Asset Institutional Composite
|January 2021||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
Concerns over the speed at which COVID-19 vaccines are being rolled out in key regions, potentially causing a delay in the global economic recovery, dampened investor sentiment near month end. This late month reversal offset all of the market strength seen earlier in January.
Returns for the SIC Multi Asset Institutional Composite were flat for the month. This compares favourably to the near three quarters of a percent decline seen in the benchmark. The Canadian Aggregate Bond Index fell the most among the major asset classes as longer-term interest rates crept up during the month. The big winners were Emerging Market and US Mid and Small Cap equities.
We believe that success in controlling the pandemic will continue to be the dominant influencer of equity markets for the first half of 2021. As vaccinations become more widespread and normal day-to-day life resumes, improved consumer and investor confidence will become increasingly evident. We remain positive on the investment outlook for 2021.