Q2 2024 market recap.

New funds launching, AI accelerating, renewable energy interest revived.

After a strong first quarter, equity markets trended downwards in the first half of April, before rebounding in May. While markets remained supported by a moderated inflationary environment and a positive economic outlook, investors were looking for clarity on the timing and size of potential central bank interest rate cuts to push markets higher.

This picture became clearer in June when the Bank of Canada and the European Central Bank cut interest rates signaling the beginning of a policy-easing cycle in some regions. The US bucked the trend however, with a resilient labour market and bumpy inflation continuing to delay the start of an easing cycle.

New funds launching.

In late July, we’ll be launching two new global equity funds—the Global Impact Fund and Global Low Volatility Fund—both of which will be available through Vancity Investment Management.

 The Global Impact Fund is designed to provide members with a direct investment in companies who not only operate in a sustainable manner, but whose businesses are also driving change and/or providing solutions to many of the global problems we face today. The world’s evolving and changing at a rapid pace, but some of these changes are unsustainable, leading to poor outcomes such as inequities and a hastening of climate change. This fund looks to invest in companies whose mission is trackable and seeks to tackle some of these key areas.

The Global Low Volatility Fund will provide members with exposure to equities with historically low levels of price fluctuations. The low-risk nature of the fund can provide balance and diversification to a portfolio of higher risk securities.

AI acceleration.

The acceleration of artificial intelligence (AI) continues to manifest itself across the investment landscape, driving pockets of incredible growth as companies build out infrastructure to support the advancement of the technology in their respective ecosystems.

While in its infancy, AI has the potential to plant new seeds of growth and benefit existing businesses by generating and/or improving productivity. But AI also comes with challenges and risks.

The energy required for AI tasks is expected to increase substantially over the next several years, with one study stating it’s already accelerating at an annual growth rate of 26 to 36 per cent, putting more pressure on stressed electrical grids. This has led to increased investor interest in the utility sector, which has outperformed the broader index over the past few months.

Renewable energy.

We’ve seen a revived focus on renewable energy companies, such as Northland Power and Boralex, (held in our Monthly Income and Canadian Equity fund, respectively) as the market comes back to the realization that renewable energy will have an even bigger impact on our future energy production.


How do you see your future?

Whether you’re an individual or an association, union, non-profit, foundation, or trust, we’ll help you invest in ways that strengthen your financial future and positively impact your community and the world.

Contact us to today to learn more at vcim@vancity.com.

information contained herein has been provided by Vancity Investment Management for information purposes only. It does not constitute financial, tax or legal advice. Always consult with your Portfolio Manager or a qualified advisor prior to making any investment decision. The information has been obtained from sources believed to be reliable, however we cannot guarantee that it is accurate or complete. Any reference to past returns, charts, or graphs are for illustrative purposes only and are not indicative of future performance. VCIM products and services are available in certain Canadian provinces and territories only.