Insurance, Investments and Group Benefits

Inflation, geopolitical instability, and energy transitions require a proactive approach to protect wealth.

Join Paul Holba, SVP and CIO, Empire Life Investments Inc., as he provides expert insights into the key trends that will shape the markets in 2025, including inflation trends, central bank policies, geopolitical risks, and the resurgence of nuclear energy.

This past week has been marked by significant developments in the United States, highlighted by President Donald Trump's conclusive electoral triumph, along with a policy adjustment from the Federal Reserve, which elected to reduce the overnight interest rates by 25 basis points. In response to these pivotal events, the Empire Life Investments Inc. team provides some explanation of the prospective implications on financial markets, with a particular focus on the U.S. market. The informed perspectives of Ashley Misquitta, Investment Strategist and Senior Portfolio Manager and Ian Fung, Senior Portfolio Manager have been collated and are presented here for a fuller understanding of the anticipated market dynamics.

Paul Holba, Senior Vice-President and CIO of Empire Life Investments Inc. discusses some of the key themes the investment team will monitor as we head into the second half of 2024.

Key takeaways:  

• Exposure to international equities was increased by 0.25%-1.5%
• Exposure to US equities was decreased by 0.25%-1.5%
• Our exposures to the other asset classes were rebalanced back to target
  

Key takeaways:  

• Tactically moving to a more defensive positioning
• Increased bonds, decreased equities (all portfolios except Emblem Aggressive Growth, which has no bond component)
• Emblem Aggressive Growth – increased US equities, decreased international equities
  
  

Tactical update - December 20, 2022

We are choosing to adopt a more cautious posture and see increasingly attractive relative value in fixed income. As such, we have reduced our equity targets in the various Emblem funds and increased our fixed income targets.

Key takeaways: Tactically increased bonds, decreased international equities*

Tactical update - January 27, 2022

We are taking a slightly more defensive posture by trimming international equities and adding to bonds. This is indeed a tactical, but measured decision. It is a move in a more conservative direction with an eye towards taking potential risk exposures incrementally lower.

Key takeaways:

Emblem Portfolios - Canadian: September 22, 2021
Emblem GIF Portfolios - Global: September 27, 2021

• Incrementally less aggressive outlook/positioning towards risk assets
• Deploying cash to realign select asset class exposures back to targets
  
  

Highlights:

• Strong sustainable investing interest in the current environment
• Record fund flows into Canadian sustainable investment funds
• Wide interest/usage gap and demographic factors allude to potential for greater fund flows
• Discussion and education will be important drivers going forward

Key takeaways:

Tactical Update - May 21, 2021

• Economies in Canada, the United States, and Europe continue their gradual re-openings following their COVID-19 induced shutdowns.