SIC Multi Asset Institutional Composite

 October 2021Year to Date
SIC Institutional1.58%8.72%

* 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

North American equity markets rebounded in October led by the S&P TSX Composite.  Tight supply produced sharply higher crude oil and natural gas prices.  This in turn, stoked investor interest in Canada‚Äôs commodity influenced equity market.  The effect was a 9% monthly advance in the energy sector as well as upward pressure on the Canadian/US dollar exchange rate.  To date, Canadian energy companies have used this profit windfall to strengthen their collective financial positions versus developing further production.  This uncharacteristically conservative approach in supply management combined with rapidly recovering global demand, suggests that the energy sector may remain in the forefront of the Canadian equity market for, at least, the next few months.

For the month, fixed income markets continued to struggle as the Bank of Canada curtailed open market operations putting upward pressure on medium- and long-term bond yields.  Duration management continued to be key in limiting the damage from rising rates on bond portfolio values. 

The SIC Multi Asset Institutional Composite outperformed the benchmark for the month, improving its outperformance on a year-to-date basis.

Terry Shaunessy
James Garcelon