Quarterly Update

Market Commentary

Following a weak start to the year, Canadian equities roared back in the second quarter posting a gain of 6.8% as measured by the S&P/TSX Composite. Canada was one of the top performing regions this quarter, surpassing the broad developed market which returned 3.8% as measured by MSCI World (C$). A rebound in commodities helped fuel the equity rally as S&P/TSX Energy and Materials gained 15.7% and 7.9%, respectively. Health Care (+14.3%) and Information Technology (+11.0%) were also top performing sectors, but were not large contributors to the index return due to their relatively small weights. Despite OPEC’s announcement of a production hike in late June, record compliance to OPEC output cuts throughout most of Q1 and Q2 along with threats of tougher US sanctions on Iran led to a near 20% rally in WTI crude oil. After a 25bps rate hike in Q1, the Bank of Canada stayed their hand during Q2 as growth continued to normalize. Canadian bonds were relatively flat for the quarter, returning 0.5% as measured by the FTSE TMX Canada Universe. During the quarter the Canadian dollar gained 3.1% against EUR, 2.0% against JPY, 4.0% against GBP, while losing 2.0% against USD.

US equities were also a strong performer this quarter, posting a gain of 5.5% as measured by the S&P 500 (C$). In local currency the index was only up 3.4% as sector performance was rather mixed. MSCI EAFE (C$) underperformed the broad developed market, gaining only 0.8% as political instability in Italy and Spain weighed down on equity sentiment. MSCI EM (C$) underperformed this quarter, dropping 6.1% on concerns of escalating global trade wars.


As of August 10, 2018
Portfolio Commentary
OnCourse AGF Elements Yield Portfolio

For the quarter ended June 30, 2018, Portfolio returned -0.6% while the blended benchmark returned 0.7%. Relative to the benchmark, the Portfolio maintained a modest overweight to equities and underweight to fixed income for the quarter based on the AGF Asset Allocation Committee's more constructive view for the asset class more

OnCourse AGF Elements Conservative Portfolio

For the quarter ended June 30, 2018, the Portfolio returned -0.1%, while the blended benchmark returned 1.4%. Relative to the benchmark, the Portfolio maintained a slight overweight to equities and slight underweight to fixed income for the quarter based on the AGF Asset Allocation Committee's more constructive view for the asset class. more

OnCourse AGF Elements Balanced Portfolio

For the quarter ended June 30, 2018, the Portfolio returned 0.7%, while the blended benchmark returned 2.1%. to the benchmark, the Portfolio maintained a modest overweight to equities and underweight to fixed income for the quarter based on the AGF Asset Allocation Committee's more constructive view for the asset class. Within equities, the Committee favoured global markets over Canadian equities. more

OnCourse AGF Elements Growth Portfolio

For the quarter ended June 30, 2018, the Portfolio returned 0.7%, while the blended benchmark returned 2.4%. Relative to the benchmark, the Portfolio maintained a sizable overweight to equities and underweight to fixed income for the quarter based on the AGF Asset Allocation Committee's more constructive view for the asset class. Within equities, the Committee favoured global markets over Canadian equities. more

OnCourse AGF Elements Global Portfolio

For the quarter ended June 30, 2018, the Portfolio returned 0.6%, while the MSCI All Country World Index returned 2.8%. The Portfolio’s modest exposure to Canadian equities contributed to performance, as Canadian equities outperformed most other developed markets due in part to rising energy prices. more

As at June 30, 2018
Portfolio Commentary
OnCourse NEI Select Income RS Portfolio

(Formerly NEI Select Ethical Income Portfolio)

The Portfolio (Series B) returned 0.71% for the quarter. Underweight to fixed income and overweight to global equities added value. Overweight to US equities added value as the US outperformed the broad developed market. more

OnCourse NEI Select Income and Growth Portfolio

(Formerly NEI Select Conservative Portfolio)

The Portfolio (Series B) returned 0.95% for the quarter. Underweight to fixed income and overweight to global equities added value. Within fixed income, a small allocation to high yield bonds slightly added value. more

OnCourse NEI Select Balanced Portfolio

The Portfolio (Series B) returned 0.89% for the quarter. Underweight to fixed income and overweight to global equities added value. Within fixed income, a small allocation to high yield bonds slightly added value. more

OnCourse NEI Select Growth Portfolio

The Portfolio (Series B) returned 1.54% for the quarter. Underweight to fixed income and overweight to both global and Canadian equities added value. Within fixed income, a small allocation to high yield bonds slightly added value. more

OnCourse NEI Select Maximum Growth Portfolio

(Formerly NEI Select Global Maximum Growth Portfolio)

The Portfolio (Series B) returned 1.76% for the quarter. Underweight to fixed income and overweight to both global and Canadian equities added value. more

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