SIC Multi Asset Institutional Composite

 June 2021Year to Date
SIC Institutional2.41%6.64%
Benchmark*2.16%5.68%

* 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

Capital markets continued to perform well at mid-year.  Both the S&P 500 and S&P TSX Composite Indices achieved record closing levels in June.  Post COVID-19 economic activity remains robust and portends a pattern of strong corporate earnings for the balance of 2021.  Despite a spike in the inflation data, long bonds performed well in June as investors were reassured by Chairman Powell that Federal Reserve tightening is not a near term factor.  For the month, the SIC Multi Asset Institutional Composite performed slightly ahead of the benchmark widening its outperformance on a year-to-date basis.

As COVID-19 restrictions are further relaxed, we expect that the summer may be unusually quiet for capital markets as families are reunited and vacation plans are fulfilled.  Portfolio returns for the balance of 2021 are unlikely to match those achieved in the first half.   Much good news has already been discounted into global equity values – especially North American equities.

Terry Shaunessy
James Garcelon