Quarterly Update

Market Commentary

The third quarter of 2017 saw the US Federal Reserve announce that they will begin to normalise its balance sheet, while the possibility that the European Central Bank could reduce its stimulus measures continued to be a focus for the markets. Global equities as represented by the MSCI World (C$) returned 0.96%, whereas global bonds as represented by the Barclays Global Aggregate (C$ Hedged) returned 0.63% to end the quarter. Within Canada, the S&P/TSX Composite returned 3.68% to end the quarter.

The Canadian economy continued its strong momentum from last quarter, posting second quarter annualized GDP growth of 4.5%; as a well as a jump in both exports and household consumption. Commodities also saw further strength, as the Bank of Canada Commodity Price Index gained almost 8% during the quarter. Regarding the bond market, the FTSE TMX Canada Universe Bond returned -1.84% over the period. In the US, the S&P 500 ended the quarter flat, returning 0.61% (C$). However, in spite of increased political uncertainty amid rising tensions with North Korea and the ongoing inability of the Trump administration to implement their policy goals, the S&P 500 returned 4.48% in USD currency.

Buoyed by a strong economic backdrop, the Barclays US HY 2% Issuer Cap (C$ Hedged) – representative of US high yield bond, returned 1.80% for the quarter. Outside of North America, the MSCI Europe (C$) returned 2.51% for the quarter. Emerging Market saw another positive quarter, as the MSCI Emerging Market (C$) returned 3.90% over the period.


As of October, 2017
Portfolio Commentary
OnCourse AGF Elements Yield Portfolio

For the quarter ended September 30, 2017, the Portfolio returned -0.7% while the blended benchmark returned -0.9%. During the quarter, the Portfolio’s allocation to global equities was reduced marginally, further favouring Canadian equities. This contributed to performance, as Canadian equities benefited from firming commodity prices and two central bank interest rate hikes. more

OnCourse AGF Elements Conservative Portfolio

For the quarter ended September 30, 2017, the Portfolio returned -0.3%, while the blended benchmark returned -0.4%. During the quarter, Canadian equity exposure was further increased as part of reductions to both U.S. and global equity exposure. This contributed to performance, as Canadian equities benefited from firming commodity prices and two central bank interest rate hikes. more

OnCourse AGF Elements Balanced Portfolio

For the quarter ended September 30, 2017, the Portfolio returned 0.2%, while the blended benchmark returned 0.4%. Relative to the benchmark, the Portfolio maintained an overweight equities and underweight fixed income allocation. more

OnCourse AGF Elements Growth Portfolio

For the quarter ended September 30, 2017, the Portfolio returned 0.2%, while the blended benchmark returned 0.9%. Relative to the benchmark, the Portfolio maintained an overweight to equities and underweight to fixed income. more

OnCourse AGF Elements Global Portfolio

For the quarter ended September 30, 2017, the Portfolio returned 0.2%, while the MSCI All Country World Index returned 1.4%. During the quarter, an out of benchmark exposure to Canadian equities was further increased in favour of U.S. equities due to strong economic data and higher interest rates. This positioning contributed to performance. more

As at: September 30, 2017
Portfolio Commentary
OnCourse NEI Ethical Select Income Portfolio

The NEI Ethical Select Income Portfolio, Series B returned -0.40% for the quarter. In terms of asset allocation, when compared to its benchmark, the fund’s underweight to fixed income and overweight to global equities added value. more

OnCourse NEI Select Conservative Portfolio

The NEI Select Conservative Portfolio, Series B returned -0.14% for the quarter. In terms of asset allocation, when compared to its benchmark, the fund’s underweight to fixed income and overweight to global equities added value. more

OnCourse NEI Select Balanced Portfolio

The NEI Select Balanced Portfolio, Series B returned 0.60% for the quarter. In terms of asset allocation, when compared to its benchmark, the fund’s underweight to fixed income and overweight to both Canadian and global equities added value. more

OnCourse NEI Select Growth Portfolio

The NEI Select Growth Portfolio, Series B returned 0.80% for the quarter. In terms of asset allocation, when compared to its benchmark, the fund’s underweight to fixed income and overweight to both Canadian and global equities added value. more

OnCourse NEI Select Global Maximum Growth Portfolio

The NEI Select Global Maximum Growth Portfolio, Series B returned 1.26% for the quarter. In terms of asset allocation, when compared to its benchmark, the fund’s underweight to fixed income and overweight to Canadian equities added value. more

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