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Asset Allocation – June 2017

PDF of Global Asset Class returns click here

S&P 500 advanced 0.6% in June bringing the YTD performance to 9.3%. Emerging markets equities continue to be the best performing asset class in 2017 up 18.5% while commodities are the only asset class in the red down -5.3%. The technology sector is the top performer in the S&P 500 up a impressive 17.2% but on a equal-weight basis Health Care is the top performer up 20%.  Energy and telecom are the only two sectors in the red down -12.6% and -10.7% respectively. The TSX 60 is up 0.6% YTD with the Discretionary sector leading the way up 12.2%.

Asset Class YTD Performance

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Across the board defensive positioning is outperforming cyclicality. Defensive sectors are outperforming more cyclical sectors, Large cap is beating small cap, growth over value and low volatility over high beta. While we believe these trends will continue to persist, June exhibited some mean reversion towards cyclicality, with Small caps up 3%, Value up 2.8% and high beta up 2.3%.  Momentum continues to be the factor to watch in 2017 up 18.1% YTD thanks to its large allocation to US Technology (>40%).

Factor YTD Performance

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Russia is in a lonely position as the only country in the red this year among the MSCI Country ETFs we follow down 13%. Bitcoin is by far the best performing “currency” up nearly 163% YTD and the US dollar is the worst currency we track down -6.4%. The Canadian dollar rallied over 4% in June to climb into the green on the year. Bloomberg Live Stock Index is up 11.4% with lean hogs up 37% through the first half of the year, Energy continues to struggle down -20%.

MSCI Country ETF’s YTD Performance

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This document may contain certain forward-looking statements. These statements may relate to future events or future performance and reflect management’s current expectations. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Neither the Funds nor their respective managers assume any obligation to update or revise any forward-looking statement to reflect new events or circumstances. Actual results may differ materially from any forward-looking statement. Historical results and trends should not be taken as indicative of future operations. The Fund is not guaranteed, its value changes frequently and past performance may not be repeated. Unless otherwise indicated and except for returns for period less than one year, the indicated rates of return are the historical annual compounded total returns including changes in security value. All performance data take into account distributions or dividends paid to unit holders but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.

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