Quarterly Update

Market Commentary

The second quarter of 2017 saw the impact of President Trump’s pro-growth rhetoric begin to wane on markets, as the performance between equity and bond markets narrowed throughout the period. Global equities as represented by the MSCI World (C$) returned 1.30%, whereas global bonds as represented by the Barclays Global Aggregate (C$ Hedged) returned 0.86% to end the quarter.

Within Canada, the S&P/TSX Composite returned -1.64% to end the quarter. The Bank of Canada, spurred by better than anticipated GDP growth and a strong labour market, took on a more aggressive tone in mid-June; citing that the two-interest rate cuts since the 2015 oil shock have “done their job” to vitalize the economy. As of quarter-end, markets were pricing in an 84% likelihood of a rate hike in July. Regarding the bond market, the FTSE TMX Canada Universe Bond returned 1.11% over the period.

The S&P 500 ended the quarter flat, returning 0.39% (C$). Though there was positive economic data throughout the quarter, political uncertainty remained ever-present in the market as President Trump dismissed the then FBI Director, James Comey. This raised doubts over the ability of the administration to push its fiscally expansive policies and also weighed on the dollar. The Barclays US HY 2% Issuer Cap (C$ Hedged), representative of US high yield bonds, returned 2.05% for the period.


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

For the quarter ended June 30, 2017, the AGF Elements Yield Portfolio returned 0.3% while the blended benchmark returned 0.2%. The Portfolio's benchmark asset mix is 75% fixed income and 25% equities. Relative to the benchmark, the Portfolio maintained a slight underweight to fixed income, with greater exposure to equities 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, 2017, the AGF Elements Conservative Portfolio returned 0.2%, while the blended benchmark returned 0.6%. Relative to the benchmark, the Portfolio maintained an 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. This contributed to performance. more

OnCourse AGF Elements Balanced Portfolio

For the quarter ended June 30, 2017, the AGF Elements Balanced Portfolio returned 0.2%, while the blended benchmark returned 0.6%. Relative to the benchmark, the Portfolio maintained an 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. This contributed to performance. more

OnCourse AGF Elements Growth Portfolio

For the quarter ended June 30, 2017, the AGF Elements Growth Portfolio returned 0.5%, while the blended benchmark returned 1.1% Relative to the benchmark, the Portfolio maintained an 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. This contributed to performance. more

OnCourse AGF Elements Global Portfolio

For the quarter ended June 30, 2017, the AGF Elements Global Portfolio returned 0.9%, while the MSCI All Country World Index returned 1.7%. The Portfolio's benchmark asset mix is 100% equities. Relative to the benchmark, the Portfolio maintained an overweight to Canadian equities. This detracted from returns. more

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

The NEI Ethical Select Income Portfolio (Series B) returned 0.73% for the quarter. In terms of asset allocation, both the fund’s allocation to Canadian investment grade bonds and global equities added value. more

OnCourse NEI Select Conservative Portfolio

The NEI Select Conservative Portfolio (Series B) returned 0.32% for the quarter. In terms of asset allocation, both the fund’s allocation to Canadian investment grade bonds and global equities added value. more

OnCourse NEI Select Balanced Portfolio

The NEI Select Balanced Portfolio (Series B) returned 1.03% for the quarter. In terms of asset allocation, both the fund’s allocation to Canadian investment grade bonds and global equities added value. more

OnCourse NEI Select Growth Portfolio

The NEI Select Growth Portfolio (Series B) returned 1.06% for the quarter. In terms of asset allocation, both the fund’s allocation to Canadian investment grade bonds and global equities added value. more

OnCourse NEI Select Global Maximum Growth Portfolio

The NEI Select Global Maximum Growth Portfolio (Series B) returned 1.23% for the quarter. In terms of asset allocation, both the fund’s allocation to Canadian investment grade bonds and global equities added value. more

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