Second Quarter 2021 Client Letter

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March 31, 2021
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Second Quarter 2021 Client Letter

Second Quarter 2021

On the final day of March 2021, the Canadian government announced a partnership with Sanofi Pasteur, the vaccines division of global pharmaceutical firm Sanofi, to build a vaccine manufacturing facility in Ontario. While the facility will take five years to build, and will not help curb the current pandemic, it will have the capacity to manufacture enough vaccine to inoculate the entire country within six months of any future pandemic. Welcome news indeed!

As expected, markets in the first quarter of 2021 have been marked by ongoing volatility as the world recovers from the negative effect of the first waves of the COVID-19 pandemic. In positive news the Canadian economy grew by 0.7% in January and the preliminary report for February indicates a better-than-expected 0.5% increase. Consumers and businesses continue to adapt to the containment measures, performance of the housing market has been stronger than expected, and higher commodity prices are a favourable sign for the economy going forward. However, Canada’s employment numbers remain below pre-pandemic levels, with the service sector particularly hard hit, while a possible third wave of COVID-19 looms, and further lockdowns and restrictions appear more likely as we move into the month of April.

The Bank of Canada held interest rates steady in an announcement on March 10, 2021. On March 23, citing positive economic news, Toni Gravelle, Deputy Governor of the Bank of Canada, indicated that as the economy strengthens the Bank will adjust the pace of its quantitative easing program by “slowly easing off the accelerator – but not hitting the breaks”.

At the end of the month, the MSCI World Index, which reflects returns for developed equity markets around the globe was up almost 5% on the year.  The S&P 500 Index, a broad representation of the U.S. equity markets, was flat on the month as was the S&P TSX.

As the weather improves, I hope you will be able to get out and enjoy the outdoors. It may be difficult to maintain optimal social distance on crowded sidewalks and trails. Etiquette experts advise walking in single file as much as possible and allowing people with mobility issues and families with small children extra space by crossing the road if it is safe to do so. I urge you to stay safe in the month ahead as we try to overcome the pandemic and return to a more normal state.

One way to mitigate risk is to have a broadly-diversified portfolio of investments which can offer protection from market volatility. It is important to stay focused on your long-term goals and stay invested during uncertain times. My team and I are here to help. Should you have any questions regarding your portfolio, please do not hesitate to contact my office.


Sunil Chugh

Wealth Advisor

This information has been obtained from a Third-Party Source. The information in this letter is derived from various sources, including CI Investments, Signature Global Asset Management, Globe and Mail, National Post, Bloomberg, Morningstar, Yahoo Canada Finance, and Trading Economics as at various dates. Index information was provided by TD Newcrest and PC Bond, and all quoted equity index returns are on a total return basis (including dividends). Market conditions may change which may impact the information contained in this document. 

ACPI is regulated by the Investment Industry Regulatory Organization of Canada ( and a Member of the Canadian Investor Protection Fund ( Sunil Chugh is registered to advise in (securities and/or mutual funds) to clients residing in Ontario. This publication is for informational purposes only and shall not be construed to constitute any form of investment advice. The views expressed are those of the author and may not necessarily be those of ACPI. Opinions expressed are as of the date of this publication and are subject to change without notice and information has been compiled from sources believed to be reliable. This publication has been prepared for general circulation and without regard to the individual financial circumstances and objectives of persons who receive it. You should not act or rely on the information without seeking the advice of the appropriate professional. Investment products are provided by ACPI and include, but are not limited to, mutual funds, stocks, and bonds. Non-securities related business includes, without limitation, fee-based financial planning services; estate and tax planning; tax return preparation services; advising in or selling any type of insurance product; any type of mortgage service. Accordingly, ACPI is not providing and does not supervise any of the above noted activities and you should not rely on ACPI for any review of any non-securities services provided by Sunil Chugh. Any investment products and services referred to herein are only available to investors in certain jurisdictions where they may be legally offered and to certain investors who are qualified according to the laws of the applicable jurisdiction. The information contained does not constitute an offer or solicitation to buy or sell any product or service. Past performance is not indicative of future performance, future returns are not guaranteed, and a loss of principal may occur. Content may not be reproduced or copied by any means without the prior consent of the author and ACPI.

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