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Portfolio Manager’s November Comment for October Results

By November 5, 2020 No Comments

In October, the S&P/TSX declined by 3.1% the S&P500 decreased by 2.7% and the MSCI ACWI ex USA lost 2.1%. For the 12-month period ending October 30th, the S&P/TSX posted a negative return of 2.3%. Over the same period, the S&P500 surged 9.7% while the MSCI declined 2.2%.

The NQICAT recorded a net loss of 1.3% in October and a 12-month negative return of 3.1%.

The best TSX sectors for the month of October were Health Care up 7.3%, Consumer Dicretionary down 0.3%, and Utilities down 1.3%. The worst performing sectors were Information Technology down 8.7%, Consumer Staples down 7.5% and Energy down 4.7%.

The best monthly performers in the portfolio were First National up 16.1% and Equitable Group up 13.3%. At the opposite, the weakest contributors were Open Text Corporation, which was down 13.0% and Alimentation Couche-Tard down 11.5%.

2 stocks were sold and bought in the strategy in October. For this rebalancing, the model required an higher exposure to the Materials and Telecommunications sector.

The economic profile of two holdings (Magna international Inc and Sun Life Financial) have felt under the minimum threshold in the course of the quarter and needed to be sold.

The 2 purchases were Quebecor Inc. (QBR.B) and Stella-Jones (SJ). Both stocks had the highest EVA score in their respective sectors.