We started the year with cautious optimism, and most of the risks we saw at the time abated during the second quarter. This led to equities outperforming fixed income. However, the Bank of Canada’s guidance ahead of the decision to raise interest rates was not well received by the Canadian equity market, which is now the only major developed market that produced a negative return in the first half of the year. Our Canadian equity and bond funds delivered slightly negative second-quarter returns while our international funds did quite well.
On balance, we remain cautiously optimistic and expect to see continued strength in Canada’s economy in the second half of the year.
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