Capital markets dataJuly 2020
Market performance
2
Index Returns are Total Return (TR), in Canadian dollars unless otherwise noted. Source: RBC Global Asset Management. As of June 30, 2020. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The above does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
Equities Index Jun-20 3 Mo YTD 2019 2018 2017 2016Canadian Equities (Broad Market) S&P/TSX Composite TR 2.5% 17.0% -7.5% 22.9% -8.9% 9.1% 21.1%
Canadian Equities (Large Cap) S&P/TSX 60 TR 2.2% 15.0% -6.3% 21.9% -7.6% 9.8% 21.4%Canadian Equities (Small Cap) S&P/TSX SmallCap TR 5.6% 38.5% -14.3% 15.8% -18.2% 2.8% 38.5%
U.S. Equities (Large Cap) S&P 500 TR USD 2.0% 20.5% -3.1% 31.5% -4.4% 21.8% 12.0%U.S. Equities (Mid Cap) Russell Mid Cap TR USD 1.8% 24.6% -9.1% 30.5% -9.1% 18.5% 13.8%
U.S. Equities (Small Cap) Russell 2000 TR USD 3.5% 25.4% -13.0% 25.5% -11.0% 14.7% 21.3%U.S. Equities (Broad Market) Russell 3000 TR USD 2.3% 22.0% -3.5% 31.0% -5.2% 21.1% 12.7%
Global Equities MSCI World Net of Taxes TR USD 1.1% 14.2% -1.0% 27.7% -8.7% 22.4% 7.5%Global Developed Markets (ex U.S. & Can) MSCI EAFE Net of Taxes TR USD 1.7% 11.6% -14.4% 22.0% -13.8% 25.0% 1.0%
Emerging Markets Equities MSCI Emerging Markets TR 5.1% 15.7% -5.8% 12.9% -6.5% 37.3% 11.2%Fixed Income Index Jun-20 3 Mo YTD 2019 2018 2017 2016
Canadian Bonds FTSE Canada Universe Bond TR 1.7% 5.9% 7.5% 6.9% 1.4% 2.5% 1.7%U.S. Bonds Bloomberg Barclays U.S. Aggregate Bond Index TR USD 0.6% 2.9% 6.1% 8.7% 0.0% 3.5% 2.7%
U.S. High Yield Bonds ICE BofA U.S. High Yield BB-B TR USD 0.7% 9.5% -3.5% 15.1% -2.0% 7.0% 14.7%Emerging Market Bonds JP Morgan EMBI Global Diversified USD 3.5% 12.3% -2.8% 15.0% -4.3% 10.3% 10.2%
Currencies (in Canadian Dollars) Spot (1 unit of foreign currency's worth in CAD) Jun-20 3 Mo YTD 2019 2018 2017 2016U.S. Dollar USD/CAD 1.36 -1.4% -3.5% 4.5% -4.9% 8.6% -6.4% -3.0%
Euro EUR/CAD 1.53 -0.2% -1.7% 4.7% -6.9% 3.7% 6.7% -6.0%British Pound GBP/CAD 1.68 -1.1% -3.8% -2.2% -1.2% 2.5% 2.6% -18.9%
Japanese Yen (in JPY¥) JPY/CAD 0.013 -1.5% -3.9% 5.2% -4.1% 11.7% -2.9% -0.2%Commodities Spot Jun-20 3 Mo YTD 2019 2018 2017 2016
Gold (per ounce) Gold 1800.50 2.8% 12.8% 18.2% 18.9% -2.1% 13.7% 8.6%Silver (per ounce) Silver 18.64 0.7% 31.7% 4.0% 15.3% -9.4% 7.2% 15.8%
Copper (per pound) Copper 2.73 12.5% 22.5% -2.4% 6.3% -20.3% 31.7% 17.4%Crude Oil (WTI per barrel) Crude Oil 39.27 8.5% 91.7% -35.7% 34.5% -24.8% 12.5% 45.0%
Natural Gas (per million btu) Natural Gas 1.79 -3.2% 9.1% -18.3% -23.2% -3.5% -19.8% 55.9%
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U.S. and Canada equities sector performance
S&P/TSX (In CAD) Jun-20 3 Mo YTD
Energy -4.6% 10.9% -30.4%
Materials 4.5% 42.0% 15.4%
Industrials 1.5% 13.2% -3.8%
Consumer Discretionary 1.9% 32.8% -10.8%
Consumer Staples -0.4% 11.7% 1.3%
Healthcare -3.5% 9.9% -30.9%
Financials 3.7% 6.2% -16.2%
Information Technology 13.5% 68.3% 62.0%
Communication Services -2.5% -1.0% -9.0%
Utilities -0.7% 3.8% -1.7%
Real Estate 3.2% 11.7% -20.0%
S&P 500 (In USD) Jun-20 3 Mo YTD
Energy -1.3% 30.5% -35.3%
Materials 2.2% 26.0% -6.9%
Industrials 2.0% 17.0% -14.6%
Consumer Discretionary 5.0% 32.9% 7.2%
Consumer Staples -0.3% 8.1% -5.7%
Healthcare -2.4% 13.6% -0.8%
Financials -0.3% 12.2% -23.6%
Technology 7.1% 30.5% 15.0%
Communication Services -0.5% 20.0% -0.3%
Utilities -4.7% 2.7% -11.1%
Real Estate 1.5% 13.2% -8.5%
All returns are total return and as of June 30, 2020. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The above does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
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S&P/TSX and S&P 500 Sector Weights
Source: RBC GAM. As of June 30, 2020
28.9%
12.4%
11.5%
14.7%
10.3%
5.4%
5.0%
4.3%
3.4%
3.1%
1.1%
Financials
Energy
Industrials
Materials
Information Technolgy
Communication Services
Utilities
Consumer Staples
Consumer Discretionary
Real Estate
Health Care
S&P/TSX Composite Index
27.5%
14.6%
10.1%
10.8%
10.8%
8.0%
7.0%
3.1%
2.8%
2.8%
2.5%
Information Technology
Health Care
Financials
Communication Services
Consumer Discretionary
Industrials
Consumer Staples
Utilities
Real Estate
Energy
Materials
S&P 500 Index
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EM and EAFE equities sector performance
MSCI EM (In USD) Jun-20 3 Mo YTD
Energy 3.7% 23.0% -26.1%
Materials 5.2% 24.2% -13.9%
Industrials 4.4% 16.9% -15.9%
Consumer Discretionary 8.1% 22.3% 0.2%
Consumer Staples 3.7% 13.3% -9.1%
Healthcare 16.2% 37.4% 25.8%
Financials 4.0% 7.6% -25.8%
Technology 10.7% 20.5% -1.0%
Communication Services 12.3% 23.3% 11.5%
Utilities -0.1% 10.6% -18.1%
Real Estate 4.9% 6.0% -22.4%
MSCI EAFE (In USD) Jun-20 3 Mo YTD
Energy 0.8% 0.0% -36.2%
Materials 5.0% 23.8% -9.4%
Industrials 3.3% 17.9% -13.2%
Consumer Discretionary 2.1% 17.8% -13.8%
Consumer Staples 1.9% 9.4% -5.3%
Healthcare 0.3% 14.2% 4.1%
Financials 6.8% 13.4% -22.4%
Technology 5.6% 23.4% 1.6%
Communication Services 4.8% 13.5% -7.0%
Utilities 4.6% 12.5% -2.4%
Real Estate 2.0% 8.8% -21.2%
All returns are total return and as of June 30, 2020. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The above does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
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MSCI EAFE country and sector weights
Source: RBC GAM as of June 30, 2020.
16.1%
14.5%
14.5%
12.0%
11.3%
8.3%
7.3%
5.4%
4.0%
3.4%
3.2%
Financials
Health Care
Industrials
Consumer Staples
Consumer Discretionary
Information Technology
Materials
Communication Services
Utilities
Energy
Real Estate
MSCI EAFE Index
25.4%14.1%
10.9%10.3%
9.3%6.7%
4.3%3.4%
3.1%2.4%2.3%2.3%
1.1%1.0%0.9%0.6%0.6%0.5%0.3%0.2%0.2%
JapanUnited Kingdom
FranceSwitzerland
GermanyAustralia
NetherlandsHong Kong
SwedenSpain
DenmarkItaly
SingaporeFinland
BelgiumIsrael
IrelandNorway
New ZealandPortugal
Austria
MSCI EAFE Country Weight
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MSCI EM Index country and sector weights
Source: RBC GAM as of June 30, 2020
19.1%
16.9%
17.4%
13.5%
6.9%
6.5%
5.9%
4.7%
4.3%
2.6%
2.3%
Financials
Information Technology
Consumer Discretionary
Communication Services
Materials
Consumer Staples
Energy
Industrials
Health Care
Real Estate
Utilities
MSCI EM Index
41.0%12.3%11.6%
8.0%5.1%
3.8%3.2%
2.3%1.7%1.8%1.5%0.8%0.8%0.7%0.6%0.5%0.5%0.2%0.2%0.2%0.1%0.1%0.1%0.0%
ChinaTaiwan, Province Of China
Korea, Republic OfIndia
BrazilSouth Africa
Russian FederationThailand
MexicoMalaysia
IndonesiaQatar
PhilippinesPoland
ChileUnited Arab Emirates
TurkeyPeru
HungaryColombia
GreeceEgypt
Czech RepublicPakistan
MSCI EM Country Weight
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June total returns in CAD
Source: RBC GAM, Data for month ending June 30, 2020. High Yield: BofA U.S. HY Master II; EM Bonds; JPM EMBI Global Diversified; Canada Bond Universe: FTSE Canada Bond Universe TR; U.S. Investment Grade Bonds:Bloomberg Barclays U.S. Aggregate Bond Index TR; S&P 500: S&P 500 Total Return Index; S&P/TSX: S&P/TSX Total Return Index; U.S. Small Cap: Russell 2000 TR Index. U.S. Mid Cap: Russell Mid Cap TR Index. S&P/TSX Large Cap: S&P/TSX 60 TR Index. S&P/TSX Small Cap: S&P/TSX SmallCap TR Index. MSCI World: MSCI World Net of Taxes TR Index. MSCI EAFE: MSCI EAFE Net of Taxes TR Index. MSCI EM: MSCI Emerging Markets Net of Taxes TR Index. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The graph does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
0.56%
2.09%
0.38%
2.46%2.20%
5.63%
1.19%
1.93%
5.83%
1.69%
-0.78%
0.68%
3.47%
S&P 500 U.S. SmallCap
U.S. MidCap
S&P/TSX S&P/TSXLarge Cap
S&P/TSXSmall Cap
MSCI World MSCI EAFE MSCI EM CanadaBond
Universe
U.S.Investment
GradeBonds
U.S. HighYield
EM Bonds
9
Investment growth in CAD
Source: RBC GAM, Data as of June 30, 2020. High Yield: BofA U.S. HY Master II; EM Bonds; JPM EMBI Global Diversified; Canada Bond Universe: FTSE Canada Bond Universe TR; U.S. Investment Grade Bonds: Bloomberg Barclays U.S. Aggregate Bond Index TR; S&P 500: S&P 500 Total Return Index; S&P/TSX: S&P/TSX Total Return Index; U.S. Small Cap: Russell 2000 TR Index. U.S. Mid Cap: Russell Mid Cap TR Index. S&P/TSX Large Cap: S&P/TSX 60 TR Index. S&P/TSX Small Cap: S&P/TSX Small Cap TR Index. MSCI World: MSCI World Net of Taxes TR Index. MSCI EAFE: MSCI EAFE Net of Taxes TR Index. MSCI EM: MSCI Emerging Markets Net of Taxes TR Index. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The graph does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
11,145 9,680 10,135 9,783 9,862 8,993
10,777 9,930 10,105 10,788 11,273 9,944 9,902
18,093
13,408 15,075
12,433 12,901 9,918
15,663
12,369 12,793 12,282 13,419 12,159 12,434
47,227
34,615
40,862
18,506 19,090
11,620
35,001
23,434
18,315 15,727
18,563 18,662 17,620
S&P 500 U.S. SmallCap
U.S. Mid Cap S&P/TSX S&P/TSXLarge Cap
S&P/TSXSmall Cap
MSCI World MSCI EAFE MSCI EM Canada BondUniverse
U.S.Investment
Grade Bonds
U.S. HighYield
EM Bonds
Investment Growth of CAD 10,000 as of June 20201 Year 5 Years 10 Years
Index in CAD 1 Year (%) 5 Years (%) 10 Years (%)S&P 500 11.4% 12.6% 16.8%
U.S. Small Cap -3.2% 6.0% 13.2%
U.S. Mid Cap 1.3% 8.6% 15.1%
S&P/TSX -2.2% 4.5% 6.3%
S&P/TSX Large Cap -1.4% 5.2% 6.7%
S&P/TSX Small Cap -10.1% -0.2% 1.5%
MSCI World 7.8% 9.4% 13.3%
MSCI EAFE -0.7% 4.3% 8.9%
MSCI EM 1.1% 5.1% 6.2%
Canada Bond Universe 7.9% 4.2% 4.6%
U.S. Investment Grade Bonds 12.7% 6.1% 6.4%
U.S. High Yield -0.6% 4.0% 6.4%
EM Bonds -1.0% 4.5% 5.8%
10
Annualized total returns over 1, 5 and 10 years in CAD
Source: RBC GAM as of June 30, 2020. High Yield: BofA U.S. HY Master II; EM Bonds; JPM EMBI Global Diversified; Canada Bond Universe: FTSE Canada Bond Universe TR; U.S. Investment Grade Bonds: Bloomberg Barclays U.S. Aggregate Bond Index TR; S&P 500: S&P 500 Total Return Index; S&P/TSX: S&P/TSX Total Return Index; U.S. Small Cap: Russell 2000 TR Index. U.S. Mid Cap: Russell Mid Cap TR Index. S&P/TSX Large Cap: S&P/TSX 60 TR Index. S&P/TSX Small Cap: S&P/TSX Small Cap TR Index. MSCI World: MSCI World Net of Taxes TR Index. MSCI EAFE: MSCI EAFE Net of Taxes TR Index. MSCI EM: MSCI Emerging Markets Net of Taxes TR Index. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The above does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
1 Month in USDValue Blend Growth
Large -0.7% 2.0% 4.4%Mid 1.1% 1.8% 2.3%
Small 2.9% 3.5% 3.8%
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U.S. equities returns by investment style in U.S.D
YTD in USDValue Blend Growth
Large -16.3% -3.1% 9.8%Mid -18.1% -9.1% 4.2%
Small -23.5% -13.0% -3.1%
1 Year in USDValue Blend Growth
Large -8.8% 7.5% 23.3%Mid -11.8% -2.2% 11.9%
Small -17.5% -6.6% 3.5%
3 Year in USDValue Blend Growth
Large 1.8% 10.7% 19.0%Mid -0.5% 5.8% 14.8%
Small -4.3% 2.0% 7.9%
5 Year in USDValue Blend Growth
Large 4.6% 10.7% 15.9%Mid 3.3% 6.8% 11.6%
Small 1.3% 4.3% 6.9%
10 Year in USDValue Blend Growth
Large 10.4% 14.0% 17.2%Mid 10.3% 12.3% 15.1%
Small 7.8% 10.5% 12.9%
Source: RBC GAM. Data as of June 30, 2020. Large Value: Russell 1000 Value TR U.S.D. Large Blend: S&P 500 TR U.S.D. Large Growth: Russell 1000 Growth TR U.S.D. Mid Value: Russell Mid Cap Value TR U.S.D. Mid Blend: Russell Mid Cap TR U.S.D. Mid Growth: Russell Mid Cap Growth TR U.S.D. Small Value: Russell 2000 Value TR U.S.D. Small Blend: Russell 2000 TR U.S.D. Small Growth: Russell 2000 Growth TR U.S.D. Rates of return less than one year are simple rates of return. An investment cannot be made directly into an index. The above does not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
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Market index update – 5 years normalized
All indices shown are total return in Canadian dollars. Data as of June 30, 2020. Source: Bloomberg, RBC GAM. An investment cannot be made directly into an index. The graphs do not reflect transaction costs, investment management fees or taxes. If such costs and fees were reflected, returns would be lower. Past performance is not a guarantee of future results.
5,000
10,000
15,000
20,000 S&P/TSX TR Index
5,000
10,000
15,000
20,000
25,000
30,000 S&P 500 TR Index
5,000
10,000
15,000
20,000 MSCI EM Index
5,000
10,000
15,000
20,000 MSCI EAFE Index
5,000
10,000
15,000 FTSE Canada Universe Bond Index
5,000
10,000
15,000
20,000 Bloomberg Barclays US Agg Total Return Value Index
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Equity market valuations
Source: Bloomberg, RBC GAM. Data as of June 30, 2020. Canadian Equities represented by S&P/TSX Index. U.S. Equities represented by S&P 500 Index. EM Equities represented by MSCI EM Index, EAFE Equities represented by MSCI EAFE Index.
5
10
15
20
25
Canadian Equities
Trailing P/ECurrent level: 19.4
Forward P/ECurrent level: 24.7
10 Yr. Avg: 18.9
10 Yr. Avg: 16.0
7.09.0
11.013.015.017.019.021.023.025.027.0
U.S. Equities
Trailing P/ECurrent level: 21.8
Forward P/ECurrent level: 24.9
10 Yr. Avg: 18.0
10 Yr. Avg: 16.3
0.02.04.06.08.0
10.012.014.016.018.020.0 EM Equities Trailing P/E
Current level: 16.4
Forward P/ECurrent level: 16.3
10 Yr. Avg: 13.4
10 Yr. Avg: 12.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0EAFE Equities
Forward P/ECurrent level: 19.7
Trailing P/ECurrent level: 19.0
10 Yr. Avg: 17.3
10 Yr. Avg: 14.0
0
10
20
30
40
50
60
70
80
90
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
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U.S. equities 10-year volatility index
Source: COBE VIX® Index. Data as of June 30, 2020
102030405060708090
Mar-20 Apr-20 May-20 Jun-20
Last 3 Months
15
1-Year Exchange RatesUpward slope: Foreign currency appreciates against CAD - more CAD to buy 1 unit of foreign currency (more expensive) Downward slope: Foreign currency depreciates against CAD - less CAD to buy 1 unit of foreign currency (less expensive)
Source: RBC GAM, Bloomberg. Data as of June 30, 2020.
1.20
1.25
1.30
1.35
1.40
1.45
1.50
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
USD/CAD Currency
0.0110
0.0115
0.0120
0.0125
0.0130
0.0135
0.0140
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
JPY/CAD Currency
1.45
1.50
1.55
1.60
1.65
1.70
1.75
1.80
1.85
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
GBP/CAD Currency
1.35
1.40
1.45
1.50
1.55
1.60
Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20
EUR/CAD Currency
0
500
1,000
1,500
2,000
2,500
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
Spre
ad (b
ps)
16
High-yield bond spreads over the last 10 years
Source: RBC GAM, Bloomberg. Data as of June 30, 2020.
300400500600700800900
1,0001,1001,200
Mar-20 Apr-20 May-20 Jun-20
Last 3 Months
17
10-year yields over the last 12 months
% Date
Peak 2.1 July 11, 2019
Trough 0.5 March 9, 2020
% Date
Peak 1.7 January 1, 2020
Trough 0.5 May 25, 2020
Source: RBC GAM, Bloomberg. Data as of June 30, 2020
0.0
0.5
1.0
1.5
2.0
2.5
10 Year U.S Treasury Yield %
0.00.20.40.60.81.01.21.41.61.8
10-Year Canadian Government Yield %
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Disclosure