Portfolio Manager’s August Comment for July Results

The S&P/TSX rose by 4.5% in July and the S&P500 increased by 5.6% while the MSCI ACWI ex USA gained 4.1%. At the end of the 12-month period ending July 31st, the S&P/TSX posted a positive return of 1.9%. Over the same 12-month period, the S&P500 surged 12% while the MSCI ACWI ex USA gained 0.7%.

The NQICAT recorded a net gain of 8% in July and a 12-month return of -2.3%.


The best TSX sectors for the month of July were Materials up 13.1%, followed by Consumer Staples up 6.2%, and Information Technology up 6.1%. The worst-performing sectors were Financials up 0.1%, Energy up 1% and Health Care up 1.1%.

The best monthly performers in the portfolio were Kirkland Lake Gold up 30.9% and Financial National up 22.8%. On the opposite, the weakest contributors were Toronto-Dominon, which was down 0.9%, and Great-West down 0.5%.

3 stocks were sold and bought in the strategy in July. For this rebalancing, the model required an exposure reduction of to the Materials sector equivalent to 2 stocks. Stella-Jones (SJ) and CCL Industries Inc. Class B (CCL.B) were sold because of their relatively lower SP scores compared to Kirkland and Winpak.

The model also called for the selling of Gildan (GIL) due to a deterioration of its SP score.

The model required an increased exposure to Consumer Staples and Consumer Discretionary. The names that made it into those sectors were Empire Company (EMP.A) and Thomson Reuters Corp. (TRI). Richelieu Hardware Ltd (RCH) was bought as a replacement for Gildan.