IN THIS ISSUE

Market Commentary

Canadian Markets - Turmoil in global financial markets and fears of a global recession continued to shock equity markets throughout fourth quarter. Canadian equity market started off the first half of 2008 on positive ground; however, the S&P/TSX Composite Index along with other world indices plummeted in both the quarter and the year, with global equity markets losing trillions of dollars in 2008.

US Markets - As deep gloom continues to spread through the U.S. financial markets, it is no surprise that the U.S. equity market retreated during fourth quarter 2008. The S&P 500 Index experienced negative returns for the fifth consecutive quarter, and posted one of its biggest annual declines in history. In Canadian dollars, the S&P 500 Index returned -9.37% for the quarter and -21.20% for the year 2008.

International Markets - Throughout the quarter, the worst global financial crisis since the Great Depression walloped international markets and led to the most dramatic international government intervention since the 1930s.

Emerging Markets - The world’s emerging market economies displayed typically high volatility. Countries in Eastern Europe with high current-accounts deficits and foreign debts were especially sensitive to the economic downturn. Similar to last quarter, European, Middle Eastern and Latin American markets were hardest hit, whereas Asian and African markets were spared the worst.

Highlights
Performance & Risk Analytics Product Manager Wins Award For Excellence in Performance Measurement Writing
BNY Mellon Asset Servicing, the world leader in securities servicing, announced that analytics product manager David Asermely has won The Spaulding Group’s prestigious Peter O. Dietz award for excellence in performance measurement writing for his white paper “Long/Short Portfolio Analytics.”

Report of the Quarter
Value Added Chart
One of the most frequently asked questions our clients ask themselves about their managers is: “How has the manager’s performance fared compared to their benchmark?”