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Christian Godin

Portfolio Manager’s August Comment for July Results

In July, the S&P/TSX grew by 4.7%, the S&P 500 surged by 9.2% while the MSCI ACWI ex USA rose by 3.5%.

At the end of the 12-month period ending July 29, the S&P/TSX decreased a modest 0.2%, the S&P 500 tumbled 4.6% while the MSCI ACWI ex USA fell by 14.8%.

In July, NQICAT increased by 9.6% while it decreased -3.3% on an annual basis.

The best TSX sectors for the month of July were Industrials up 10.3%, Information Technology up 9.8% and Consumer Discretionary up 8.2%.

The worst performing sectors were Heath Care down 7.6%, Telecommunications down 1.5% and Materials down 0.6%.

The best monthly performers in NQICAT were Transforce up 24.1%, Canfor up 21.4% and Stella-Jones up 17%. At the opposite, the weakest contributors were TD down 0.4%, Royal Bank up 0.2% and Canadian Tire up 1.3%.

1 stock was sold and bought in the strategy.

The strategy required an increased exposure to the Energy sector and a exposure reduction in consumer discretionary. Leon’s Furniture (LNF) had the lowest SP score of its sector therefore it needed to be sold. Canadian Natural Resources (CNQ) have been added to the strategy due to their high SP score.

 

Portfolio Manager’s July Comment for Q2 Results

The upward trend of the Canadian equity market came to an end in the second quarter of 2022 with the reversal of the Materials and Energy sector performance in June.

 

In Q2, the S&P/TSX Total Return Index declined by 13.2%, the S&P 500 fell by 16.1% while the MSCI ACWI ex. USA decreased by 13.5%.

 

In Q2, NQICA returned -8.7%. The NQICA returned -8.4% while the S&P/TSX composite returned -3.9% on an annualized basis.

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In Canada, the best Q2 sectors were Energy up 2.7%, Utilities down 4.4% and Consumer Staples down 5.4%.

 

The worst sectors were Health Care down 45.8%, Information Technology down 24.1%, and Materials down 24%.

 

In Q2, the best performers in NQICA were Dollarama (DOL), Hydro One (H) and Intact Financial Corporation (IFC) up 4.6%, 3.6% and down 1.2% respectively.

 

On the other hand, the worst performers were Labrador Iron Ore (LIF), goeasy (GSY) and Leon’s Furniture (LNF) down 31.3%, 29.4% and 28.7% respectively.

Portfolio Manager’s June Comment for May Results

In May, the S&P/TSX increased by 0.1%, the S&P 500 grew by 0.2% while the MSCI ACWI ex USA rose by 1.3%.

At the end of the 12-month period ending May 31st, the S&P/TSX grew by 7.9%, the S&P 500 gained 0.3% while the MSCI ACWI ex USA decreased by 11.5%.

In May, NQICAT increased by 1.2% while it climbed 0.3% on an annual basis.

The best TSX sectors for the month of May were Energy up 11.4%, Financials up 1% and Utilities up 1.1%.

The worst performing sectors were Health Care down 16.5%, Materials down 6% and Industrials down 5.3%.

The best monthly performers in NQICAT were Parex Resource up 11.9%, Equitable Group up 10.6% and Canfor up 9.4%.

At the opposite, the weakest contributors were Leon’s Furniture down 11.4%, Labradon Iron Ore Royalty Corporation down 7.8% and Enghouse down 5.9%.

Portfolio Manager’s May Comment for April Results

In April, the S&P/TSX decreased by 5.0%, the S&P 500 fell by 8.7% while the MSCI ACWI ex USA contracted by 6.2%.

 

At the end of the 12-month period ending April 29, the S&P/TSX grew by 11.6%, the S&P 500 gained a modest 0.2% while the MSCI ACWI ex USA fell by 9.9%.

 

In April, NQICAT decreased by 7.8% while it climbed 1% on an annual basis.

 

The best TSX sectors for the month of April were Energy up 8.4%, Consumer staples up 0.2% and Telecommunication down 1.3%.

 

The worst performing sectors were Heath Care down 18.6%, Information Technology down 15.4% and Industrials down 7.9%.

 

The best monthly performers in NQICAT were ARC Resources up 6.4%, Hydro one up 3.1% and Alimentation Couche-tard up 1.7%. At the opposite, the weakest contributors were TFI International down 22.1%, Richelieu Hardware down 19.9% and Equitable down 19.6%.

 

3 stocks were sold and bought in the strategy.

 

The strategy required an increased exposure to the Financial and Energy sector and a exposure reduction in Industrials and Consumer Staples. GDI Integrated Facility Services Inc (GDI) and Metro (MRU) had the lowest SP score of their respective sector therefore they needed to be sold. Intact Financial Corporation (IFC) and ARC Resources (ARX) have been added to the strategy due to their high SP score.

 

Power Corporation (POW) was sold due to its relatively low SP score compared to other Financials. The company has been replaced by Brookfield Asset Management (BAM.A) which is in the top of its sector.

Portfolio Manager’s April Comment for Q1 Results

The performance of the Canadian equity market continued on its upward trend, as Energy and Materials remained robust in the first quarter of 2022.

In Q1, The S&P/TSX Total Return Index rose by 3.8%, the S&P 500 fell by 4.6% while the MSCI ACWI ex. USA decreased by 5.3%.

In Q1, NQICA returned 0.8% leading to a 1-year return of 12.2% versus the S&P/TSX composite which returned 20.2% on an annualized basis.

In Canada, the best Q1 sectors were Energy up 36.2%, Materials up 19.7% and Telecommunication up 8.3%.

The worst sectors were Information Technology down 20.7%, Consumer Discretionary down 8.0%, and Health Care down 5.8%.

In Q1, the best performers in NQICA were Parex Ressources (PXT), Canadian Pacific (CP) and North West Company (NWC) up 19.3%, 13.4% and 12.9% respectively.

On the other hand, the worst performers were goeasy (GSY), Canfor (CFP) and Enghouse (ENGH) down 21.4%, 19.7% and 18.1% respectively.

Portfolio Manager’s March Comment for February Results

In February, the S&P/TSX increased by 0.3%, the S&P 500 fell by 3.0% while the MSCI ACWI ex USA contracted by 2.0%.

 

At the end of the 12-month period ending February 28, the S&P/TSX grew by 20.1%, the S&P 500 gained 16.4% while the MSCI ACWI ex USA disappointed investors by remaining unchanged.

 

In February, NQICAT increased by 0.5% while it climbed 18.8% on an annual basis.

 

The best TSX sectors for the month of January were Materials up 12.8%, Energy up 8.5% and Telecommunication up 1.6%.

 

The worst performing sectors were Information Technology down 9.7%, Consumer Discretionary down 4.3% and Heath Care down 2.8%.

 

The best monthly performers in NQICAT were Labrador Iron Ore Royalty Corporation up 19.6%,Tranforce up 8.0% and Equitable Group up 7.3%.

 

At the opposite, the weakest contributors were Leon’s Furniture down 9.3%, Enghouse down 7.2% and Hydro-one down 4.7%.

Portfolio Manager’s February Comment for January Results

In January, the S&P/TSX decreased by 0.4%, the S&P 500 fell by 5.2% while the MSCI ACWI ex USA contracted by 3.7%.

At the end of the 12-month period ending January 31st , the S&P/TSX grew by 25%, the S&P 500 gained 23.3% while the MSCI ACWI ex USA posted a meager return of 4.1%.

In January, NQICAT increased by 0.2% while it climbed 21.6% on an annual basis.

The best TSX sectors for the month of January were Energy up 17.7%, Financials up 3.6% and telecommunication up 2.2%.

The worst performing sectors were Information Technology down 12.0%, Heath Care down 8.7% and Industrials down 3.4%.

The best monthly performers in NQICAT were Parex Ressources up 25.1%, Richelieu Hardware up 14.6% and Royal Bank of Canada up 8.0%. At the opposite, the weakest contributors were goeasy down 17.4%, Transforce down 13.5% and Canfor down 9.9%.

3 stocks were sold and bought in the strategy.

The strategy required an exposure reduction to the Material sector for 2 stocks. Winpak (WPK) and CCL Industries Class B (CCL.B) had the lowest SP score therefore they needed to be sold. Leon’s Furniture (LNF), a consumer discretionnary, and Canadian Pacific Railway (CP), an industrial, were added to the portfolio due to their high SP scores.

Kirkland Lake Gold (KL) was sold due to its anticipated merger with Agnico Eagle (AEM). AEM has a lower SP score, so we replaced KL for a company with a higher SP score i.e. Labrador Iron Ore Royalty (LIF).

Portfolio Manager’s January Comment For Q4 2021

The year 2021 ended with a strong Christmas rally. This positive final rally happened despite uncertainties regarding the omicron virus and the FED’s interpretation of inflation, removing “transitory” from its vocabulary.However, the market was comforted in December by strong third quarter financial reports and the lack of significant impact from omicron until now.

 

In Q4, The TSX expanded by 3.1%, the S&P 500 rose by 4.5% while the MSCI ACWI ex. USA increased by 4.2%.

 

At the end of the 12-month period ending December 31, the TSX grew by 25.1%, the S&P500 gained 28.7% while the MSCI ACWI ex USA posted a meager return of 8.3%.

 

In Q4, NQICA returned 5.5% leading to a 1-year return of 21.7%

 

In Canada, the best Q4 sectors were Energy up 13.3%, Materials up 10.3% and Financials up 8.4%. The worst sectors were Health Care down 19.5%, Info Technology down -3.6% and Telecommunication up 3.0%.

 

In Q4, the best performers of NQICA were TD bank, Dollarama and Canfor up 16.6%, 15.3% and 15.2% respectively.

 

On the other hand, the worst performers were Enghouse , goeasy and Winpak down 11.8%, 11% and 9.2% respectively.

Portfolio Manager’s December Comment for November Results

The S&P/TSX Total Return Index contracted by 1.6% in November, the S&P 500 decreased by 0.7% and the MSCI ACWI ex. USA corrected by 4.5%. At November’s end, the 12-month S&P/TSX Total Return Index was 23.5% behind the S&P500 gain of 27.9% and lower than the MSCI ACWI ex. USA which rose by 9.6%.

 

In November, the NQICAT decreased by 3.1% while it climbed by 16.5% on an annualized basis.

 

The best TSX sectors for the month of November were Materials up 1%, ahead of Consumer Discretionary and Telecommunication both up 0.5%.

 

At the opposite, the worst performing sectors were Health Care down 7.4% followed by Information Technology and Industrials both down 3.5%

 

The best performers in November were Canfor up 6.3%, Hydro one up 5.6% and Telus up 2.9%.

 

On the other hand, the weakest contributors were Parex down 13.7%, goeasy down 10.4% and Stella-Jones down 9.9%.

Portfolio Manager’s November Comment for October Results

In October, the S&P/TSX increased by 5.0%, the S&P 500 rose by 7.0% while the MSCI ACWI ex USA gained 2.4%.

At the end of the 12-month period ending October 29th, the S&P/TSX grew by 38.8%, the S&P500 gained 42.9% while the MSCI ACWI ex USA posted a return of 30.2%.

In October, NQICAT increased by 1.0% while it climbed 29.4% on an annual basis.

The best TSX sectors for the month of October were Energy up 18.1%. The next 2 best sectors posted negative returns; Financials down 1.2% and Industrials down 3.0%. The worst performing sectors were Health Care down 12.4%, Information technology down 7.9% and Materials down 5.8%.

The best monthly performers in NQICAT were Canadian National Railway up 12.1%, Equitable Group up 8.2% and TD up 8.1%. At the opposite, the weakest contributors were Canfor down 7.8%, Winpak down 5.3% and GDI Integrated Facility Services down 4.4%.

2 stocks were sold and bought in the strategy, in October.

The strategy required an exposure reduction to the Financial sector. First National (FN) had the lowest SP score therefore it needed to be sold. Open Text Corporation’s (OTEX) EPI had fall below 1, therefore the stock was sold.

The model required an increased exposure to the Energy sector. With the highest SP score of its sector, Parex Ressources (PXT) made it into the strategy. We replaced Open Text Corporation by Enghouse Systems Limited. Enghouse also had the highest SP score of its sector.