SIC Multi Asset Institutional Composite

 November 2021Year to Date
SIC Institutional-0.82%7.83%
Benchmark*0.21%8.39%

* 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

Investor confidence was once again undermined by the COVID-19 curse with its new variant ominously referred to as Omicron.  Themedia’s swift overreaction fanned the flames of hysteria. Commodity, foreign exchange, and equity markets discounted in “end-of-cycle” fears by dropping sharply in a matter of hours near month-end.  Of particular note, was the greater than 3% fall in the Canadian/US dollar exchange rate following a 20% plummet in crude oil prices.  

For November, we underperformed the benchmark.  This was owing entirely to our decision in October to hedge the currency risk of our US equity allocations.  If, as we expect, this latest round of hitting the “COVID sell button” turns out to be premature, then economically sensitive markets and currencies (like Canada) will lead a market rebound.  Putting the SIC Institutional Composite ahead of its benchmark once again.    

Terry Shaunessy
James Garcelon