Q3 Market Review
- Canadian equities were up this quarter, gaining 5.45%.
- The health care, technology, consumer staples and consumer discretionary sectors all had positive returns, higher than the overall index this quarter after having negative returns the previous quarter.
- The industrials, energy and financials sectors all contributed positively to this quarter’s performance.
- The utilities and telecommunications sectors had positive returns for the quarter but dragged down overall index performance. The materials sector was the only sector with a negative return for the quarter.
- World markets, represented by the MSCI World Index (C$), and the U.S. market represented by the S&P 500 (C$) were up 6.25% and 4.71% respectively for the quarter.
- The MSCI EAFE Index (C$) was up 7.78% for the quarter.
- The MSCI Emerging Markets ($C) Index also performed relatively well, and was up 10.46% at the end of the quarter.
- Global equities and Emerging Market equities generated positive local currency returns for the quarter. Global monetary policy has been very accommodative which has helped global equity and Emerging Market returns.
Canadian Fixed Income
- The gap between Canadian and U.S. interest rates increased this quarter, as Canadian rates fell 2 basis points while U.S. rates increased by 12 basis points.
- The Bank of Canada left its overnight rate unchanged at 0.50% during the third quarter to accommodate for the weaker than expected growth globally.
- The FTSE TMX Canada Universe Bond Index was up 1.19% for the quarter.
- Corporate, Provincial and Municipal bonds outperformed the index for the quarter while Federal bonds underperformed.