Purpose International Dividend Fund December Commentary

Purpose International Dividend Fund December Commentary

Fund Highlights

  • International markets were strong in December, the U.S. stumbled a bit, and the Fund outperformed the MSCI EAFE benchmark.
  • In Europe, Draghi underwhelmed on the extent of further QE measures which sparked a sharp rally in the Euro and European yields.
  • In Asia, Chinese growth concerns resurfaced as the central bank allowed the Yuan to weaken to its lowest level in over 4 years.
  • Australia and Japan were the best performing regions and Asia Developed was the only region to perform negatively this month.
  • The Canadian dollar had a balanced performance against the basket of non-hedged currencies and the Fund was flat on any gains/losses from currency exposures.

Market Commentary

Stocks and bonds ended lower in December to close out generally choppy performance for 2015.[Add sentence or 2 on 2015 market performance for U.S. equities, Canadian Equities, MSCI EAFE (local currency) and Canadian Fixed Income and oil and gold.] The main focus this month was on the FOMC decision. After another solid U.S. job number gave the green light for “lift off” the Fed delivered by hiking rates by 0.25% for the first time in a decade. The Fed went on to assuage concerns over the pace of future hikes by promising that the path would be gradual and data consistent. In Europe, Draghi underwhelmed on the extent of rate cuts and further QE measures which sparked a sharp rally in the Euro and European yields. In Asia, Chinese growth concerns resurfaced as the central bank allowed the yuan to weaken to its lowest level in over 4 years. In commodities, oil sold off further to new lows on the year after OPEC maintained its current production rate which disappointed potential expectations for a potential supply cut. Canada traded poorly on the back of this as the loonie and the S&P/TSX both sold off to end the year.

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