After a difficult year in 2022, marked by inflationary pressures and geopolitical tensions, 2023 proved more constructive, thanks to robust government and consumer spending, which gave momentum to North American economies and financial markets. However, despite solid performances in asset classes over the last year, there are still many unanswered questions surrounding the world’s economies.
With inflation falling sharply, the central banks’ monetary tightening cycles appear to have paid off. They will nevertheless have to stay cautious, so as not to harm consumers. The most likely scenario remains a moderate economic slowdown with no major job losses.
Thanks to sound diversification, the iA PAR participating account generated a good performance in this market context, growing by 7.38% in 2023. Throughout the year, we were quick to adjust our portfolio according to fluctuations in the interest rate and took advantage of opportunities to add private debt securities at attractive interest rates. We also diversified our approach to equity markets in order to benefit from different regions and sectors that indicated advantageous growth potential.
In spite of persistent challenges, our experienced analysts have identified scenarios enabling us to implement various investment strategies at the right time. What’s more, we expect our account to increase in size, favouring such implementations in the near future.
