The first half of 2021 was marked by the gradual economic recovery that was strongly supported by the stimulus packages adopted by the various central banks.
The Bank of Canada is no exception, and continues to support this recovery and is not considering raising its lending rate before the end of 2022. Low interest rates combined with inflationary pressure cause us to be quite selective in allocating assets in bonds in the participating account.
The proportion of fixed income securities in the participating account is skewed towards corporate credit, commercial mortgages, infrastructure and private debt due to the risk-adjusted returns generated by these asset classes. We will continue to be opportunistic in these different asset classes in order to pursue our investment targets. Our outlook for the remaining months of 2021 remains positive for the equity market, which leads us to maintain our asset allocation at the maximum target in this asset class.
Link to: F13-1080A | Overview of the participating account
