The Overview of the Participating Account as at December 2021 is now available. Here are some highlights associated to the document.
The fight between the different variants of COVID and vaccines was all the rage in the fourth quarter while inflation remained a macro-economic concern in the background. The global economic growth cycle continues but its magnitude could be mitigated in 2022. Effects may be felt as a result of the spread of Omicron, China’s zero-COVID policy, and the interventions of North American central banks.
Faced with a possible interest rate hike in 2022, we have shortened the duration of government bonds by reducing their exposure to long maturity periods. Where there is a substantial rate hike, we could go back to securities with longer terms. Opportunities throughout the year have enabled us to maximize the portfolio’s return. Forecasts with a specific tone of economic activity has caused us to increase our exposure to ordinary, private, and preferred shares. Finally, we have maximized the portfolio’s return with the addition of private debt and commercial mortgages. The year 2021 allowed us to properly balance the portfolio’s risk during this period of economic growth, reach our targets in terms of alternative assets, and generate attractive returns adjusted to the risk. Remember that the realized return on the account, on a market-value basis, is 9.92% since its creation and 5.97% for 2021 as at December 31st.
Consult the F13-1080 | A Overview of the participating account
