Quarterly Update

Market Commentary

Canadian equities underperformed in the third quarter, declining 0.57% as measured by the S&P/TSX Composite, compared to a 3.16% gain for the MSCI World (C$). Materials (-12.93%), Consumer Discretionary (-8.72%), and Energy (-5.74%) were the worst performing sectors. Despite West Texas Intermediate (WTI) crude oil rallying over 4% and surpassing US$70/bbl for the first time since 2014, the widening Western Canada Select (WCS) discount prevented the Canadian energy sector from participating in the rally. Ending the quarter at -$34.90, the spread between WCS and WTI hit a near all-time low and can be attributed to several factors including pipeline capacity, slow uptake in crude-oil by rail shipments, as well as production outages at two important US refineries. Finally following months of deliberation, a last-minute NAFTA deal was reached near midnight on September 30, the deadline for submitting an in-writing deal to Congress. The new deal, known as the “United States-Mexico-Canada Agreement”, largely appears to be a rebranding of NAFTA and thus eliminates a great deal of uncertainty from the trade front. The Bank of Canada announced a 25bps interest rate hike on July 11, the second one so far this year. Faced with continually tighter monetary policy the FTSE Canada Universe Bond Index declined 0.96%. During the quarter the Canadian dollar gained 1.74% against the US Dollar, 2.25% against the Euro, 4.18% against the Japanese Yen, and 2.94% against the British Pound. Amid a backdrop of strong corporate earnings and a strong economy, US equities outperformed for another quarter, gaining 5.84% as measured by the S&P 500 (C$). International markets, apart from Japan, came under pressure this quarter as contagion from an emerging market sell-off spread to European markets. The MSCI Europe Index (C$) lost 0.95% while the MSCI EM Index (C$) lost 2.81%.


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 September 30, 2018
Portfolio Commentary
OnCourse NEI Select Income RS Portfolio

(Formerly NEI Select Ethical Income Portfolio)

The Portfolio (Series B) returned 0.51% for the quarter. In terms of asset allocation, underweight to fixed income and overweight to global equities added value. Within fixed income, overweight to global versus Canadian investment grade bonds added value. more

OnCourse NEI Select Income and Growth Portfolio

(Formerly NEI Select Conservative Portfolio)

The Portfolio (Series B) returned 0.12% for the quarter. In terms of asset allocation, underweight to fixed income and overweight to global equities added value. Within fixed income, overweight to global investment grade and high yield bonds versus Canadian investment grade bonds added value. more

OnCourse NEI Select Balanced Portfolio

The Portfolio (Series B) returned 0.20% for the quarter. In terms of asset allocation, underweight to fixed income and overweight to global equities added value. Within fixed income, overweight to global investment grade and high yield bonds versus Canadian investment grade bonds added value. more

OnCourse NEI Select Growth Portfolio

The Portfolio (Series B) returned 0.34% for the quarter. In terms of asset allocation, the underweight to fixed income and overweight to global equities added value. Within fixed income, the overweight to global investment grade and high yield bonds versus Canadian investment grade bonds added value. more

OnCourse NEI Select Maximum Growth Portfolio

(Formerly NEI Select Global Maximum Growth Portfolio)

The Portfolio (Series B) returned 0.12% for the quarter. In terms of asset allocation, underweight to fixed income added value. Within fixed income, allocation to high yield bonds added value. more

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