Cidel - Q1 | Quarterly Report


Looking Back
In our opinion, these were the most important stories in Q2…
Following the steepest drop in years, global equity markets rallied sharply during the second quarter on the back of an unprecedented combination of interest rate cuts, quantitative easing, and massive fiscal spending.

Global markets bottomed-out on March 23rd, 2020 but had already begun rallying by the last week of March. The following three months saw markets continue to rally and regain much of what had been lost during the initial selloff. From the low point in March, the S&P 500 and the TSX both rallied over 39%, the MSCI AC World Index rallied 37.5% and the MSCI Emerging Market Index rallied 32.3%. During Q2 specifically, the S&P 500 was up 20.4%, the TSX was up 17.0%, MSCI AC World rebounded 19.2% and MSCI Emerging Market Index followed suit at 18.1%. While markets are currently still in negative territory for 2020 as a whole, the losses are now only in the single digits. For the first half of 2020, the S&P 500 is the best performer at -3.4%, MSCI AC World second at -6.3%, TSX at -7.5% and MSCI Emerging Markets lagging at -9.8%.
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Looking Forward
As we enter Q3, the points below have our Investment Team's attention...
The second quarter marked a remarkable rebound from the lows that we saw in March. We watched as retail investors shifted from a view of darkness and despondency to optimism and light. The speed of the shift is what made this period memorable. Today, the question facing investors is “now what?” While there is no certain answer, we are pleased to share our insight into how we are currently looking at the world.

As a starting point, we should distinguish between what we would like to be true from what is likely to be true. Ideally, we would like to see a relatively quick return to normalcy and economic activity similar to that which was seen in January. Recent economic data and news on possible vaccines has increased the optimism that we will experience a V-shaped recovery and that the COVID-19 episode will be the equivalent of “an undigested bit of beef, a blot of mustard, a crumb of cheese, a fragment of underdone potato”, as Scrooge thought of the ghost of Jacob Marley. Unfortunately, we fear that there will be other ghosts to visit us in the future as many of the consequences of the pandemic have yet to evidence themselves in the economy.
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From Shareholder to Stakeholder Value 

Since the end of WWII, there have been two theories that have defined the purpose of a corporation - stakeholder theory and shareholder value theory. At the time of our initial research in February 2020, there were strong indications that developed markets were on a precipice of a 3rd phase, or rather, returning to a model previously embraced. Fast forward to today and the evidence seems to have grown exponentially.

The Case for Alternatives

Cidel’s longstanding philosophy is that one should use various complementary, uncorrelated asset classes with positive, long-term expected returns in order to create a robust portfolio that can perform across the market cycle. Hence, we have been a long-time proponent of including alternatives in a portfolio, the importance of which is especially heightened today.

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Income Splitting 

An expected drop in the CRA’s “prescribed interest rate” on July 1 presented Canadians with an historic opportunity to implement one of the most accessible tax-saving strategies: “income splitting”.

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Q2 Performance

We are pleased to advise that Cidel's Q2 2020 Performance Summary is now available.

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New Product Launch: Cidel’s Credit Opportunities Strategy


The coronavirus pandemic that began in late 2019 and proliferated in Q1 2020 has had a profound impact on the global economy and financial markets, which could lead to a generational opportunity in stressed and distressed credit.

Corporate borrowing over the last decade has ballooned and many companies, some of which are high quality borrowers, are now finding themselves in a precarious situation due to the chain of events set off by the pandemic and the ensuing economic shutdowns.

Click here to read more.

Click here to read the Q&A.

Click here to watch the Webinar.


Cidel in the News

We are honoured to be ranked for a third year as a leading Canadian private bank by Chambers and Partners in their 2020 High Net Worth Award.

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We are pleased to announce that our team has been nominated for The SIACharts Inc. Award for Digital Innovator of the Year​. We are incredibly excited to be recognized among the top in our industry by the Wealth Professional Awards. 

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In June, we held our Annual Women’s Event, which took place virtually this year. A special thanks to our wonderful speaker, sleep expert Dr. Indra Narang, and to the SickKids Foundation.

In honour of our attendees, we were pleased to make donations to support Dr. Narang’s important research at The Hospital for Sick Children and to Food Banks Canada’s COVID-19 Relief Fund.

Click here to make a donation to the SickKids Foundation.

The YWCA had to postpone their Women of Distinction event and we were saddened to learn of the postponement of the such an important fundraising & community building event.

Along with other event sponsors, we moved forward with our sponsorship as a 2020 donation to the organization in order to help YWCA Toronto continue to provide safe & supportive spaces for the most vulnerable women and girls in Toronto.

Click here to learn more or donate.

Let's Talk

At Cidel, we pride ourselves on our deep understanding of our clients' goals. Only with that understanding can we provide you with the customized solutions that will achieve your objectives. We would love to sit down with you to see if we can help.


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This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information contained in this document has been compiled by Cidel Asset Management Inc. from sources believed to be reliable, but no representations or warranty, express or implied, are made by Cidel Asset Management Inc. as to its accuracy, completeness or correctness. The opinions expressed are as of the date of this publication and may change without notice and are provided in good faith, but without legal responsibility. Cidel Asset Management Inc., carrying on business as Cidel (“Cidel” is a registered trademark) is registered as a portfolio manager, investment fund manager and exempt market dealer in Ontario. Cidel is also registered as a portfolio manager and exempt market dealer in the provinces of Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Saskatchewan. In Quebec, Cidel is registered as a portfolio manager, investment fund manager and exempt market dealer. This document may not be reproduced, distributed or published by any recipient hereof for any purpose.