Category

Featured

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.

Portfolio Manager’s September Comment For Q3 2021

The performance of the equity market has been subdued by inflation concerns as well as China real estate debt burden, supply chain disruption and COVID fourth wave. September took away most of the early gains of the quarter.

In Q3, The S&P/TSX expanded by 0.2%, the S&P 500 rose by 0.6% while the MSCI ACWI ex. USA decreased by 2.9%.

In Q3, NQICA returned 3.2% leading to a 1-year return of 26.3% versus the S&P/TSX composite which returned 28.0% on an annualized basis.

In Canada, the best Q3 sectors were Consumer Staples up 3.8%, Energy up 3.3% and Information Technology up 3.2%. The worst sectors were Health Care down 21.9%, Consumer Discretionary down 6.4% and Materials down 6.0%.

In Q3, the best performers of NQICA were goeasy (GSY), TFI International (TFII) and Winpak (WPK) up 27.8%, 14.8% and 13.7% respectively.

On the other hand, the worst performers were First National (FN), Canadian Tire (CTC.A) and Stella-Jones (SJ) down 10.4%, 9% and 4% respectively.

Portfolio Manager’s September Comment for August Results

The S&P/TSX Total Return Index expanded by 1.6% in August, the S&P 500 grew a robust 3.0% and the MSCI ACWI ex. USA increased by 1.9%. At August’s end, the 12-month S&P/TSX Total Return Index was 28.2% behind the S&P500 gain of 31.2% and lower than the MSCI ACWI ex. USA which rose by 25.4%.

In August, the NQICAT increased by 3.0% while it climbed by 30.5% on an annualized basis.

The best TSX sectors for the month of August were Information Technology up 8.9%, followed by Industrials up 3.4%, and Telecommunication services up 3.0%.

At the opposite, the worst performing sectors were Materials down 3.0%, Energy down 1.5% and Consumer Discretionary down 1.4%.

The best performers in August were goeasy up 14.5%, Canfor up 12.4% and Canadian National Railway up 9.5%.

On the other hand, the weakest contributors were Kirkland Lake Gold down 5.7%, Stella-Jones down 4.7% and Dollarama down 2.0%.

Portfolio Manager’s August Comment for July Results

In July, the S&P/TSX increased by 0.8% and the S&P500 rose by 2.4% while the MSCI ACWI ex USA lost 1.6%. At the end of the 12-month period ending July 31st, the S&P/TSX grew by 29.1%, the S&P500 gained 36.4% while the MSCI ACWI ex USA posted a return of 28.8%.

In July, NQICAT increased by 3.8% while it climbed 29.1% on an annual basis.

The best TSX sectors for the month of July were Consumer Staples up 6.3%, followed by Information Technology up 3.0% and Materials up 3.0%. The worst performing sectors were Health Care down 11.6%, Energy down 11.3% and Consumer Discretionary down 0.9%.

The best monthly performers in NQICAT were Transforce up 23.7%, Winpak up 13.3% and Equitable Group up 12.8%. At the opposite, the weakest contributors were Canfor down 15.1%, First National down 5.9% and TD down 3.6%.

2 stocks were sold and bought in the strategy in July.

The strategy required an exposure reduction to the Telecommunication sector. Quebecor (QBR.B) had the lowest SP score therefore we sold it. We sold Evertz Technologies (ET) due to its low SP score.

The model required an increased exposure to 1 Consumer Staples The North West Company (NWC) made it into the strategy. We replaced Evertz by GDI Integrated Facility Services Inc.

Portfolio Manager’s July Comment For Q2 2021

The performance of the equity market continued its upward trend following the beginning of the vaccination campaign and in anticipation of the complete reopening of the economy.

In Q2, The S&P/TSX Total Return Index rose by 8.5%, the S&P 500 expanded by 8.5% as well while the MSCI ACWI ex. USA increased by 5.5%.

In Q2, NQICA returned 4.3% leading to a 1-year return of 34.4% versus the S&P/TSX composite which returned 33.9% on an annualized basis.

In Canada, the best Q2 sectors were Energy up 20%, Information Technology up 15.8% and Telecommunication up 9.3%. The worst sectors were Health Care down 12.0%, Utilities up 0.5%, and Industrials up 0.8%.

In Q2, the best performers of NQICA were goeasy (GSY), TFI International (TFII),  and Power Corporation of Canada (POW) up 26.8%, 20.4% and 18.6% respectively.

On the other hand, the worst performers were Winpak (WPK), Stella-Jones (SJ) and Canadian National Railway (CNR) down 14.1%, 11.7% and 9.9% respectively.

Portfolio Manager’s June Comment for May Results

The S&P/TSX Total Return Index expanded by 3.4% in May, the S&P 500 grew a meager 0.7% and the MSCI ACWI ex. USA increased by 3.2%. At May’s end, the 12-month S&P/TSX Total Return Index was 33.8% behind the S&P500 gain of 40.3% and lower than the MSCI ACWI ex. USA which rose by 43.4%.

In May, the NQICAT increased by 1.9% while it climbed by 34.2% on an annualized basis.

The best TSX sector for the month of May was Energy up 10%, followed by Materials up 8%, and Consumer Staples up 4.4%. At the opposite, the worst performing sectors were Health Care down 3.4%, Consumer Discretionary down 1.1% and Info Tech down 1%.

The best performers in May were Kirkland Lake Gold up 13.6%, Power Corporation of Canada up 9.9% and TransForce up 7.8%.

On the other hand, the weakest contributors were Stella-Jones down 9.9%, Dollarama down 8.3% and Winpak down 5.7%.