The Canadian stock market benefitted in 2000 from strong corporate profits and the expectation of more to come. On the surface, attention was focussed on the rise and fall of the technology stocks and, particularly, the heavily weighted Nortel Networks. All of the components of the Fund, Canadian, U.S. and International outperformed their respective indices. The first half of 2001 could prove difficult for equity markets as they try to assess the degree of weakness in the global economy. Declining interest rates will be a positive, but the question is whether central banks will cut rates fast enough to keep economies out of recession.
Strategy remains defensive and well diversified.
In the foreign component, non-North American stocks are favoured over U.S. ones.