In the second quarter, the S&P/TSX Composite Total Return Index increased by 17%, the S&P500 total return grew by 20.5% while the MSCI ACWI ex-USA returned 16.3%.
Q2 returns were eye-popping and are pointing to a V-shaped recovery. Growth and technology have continued their outperformance compared to the rest of the market.
In Q2, NQICA returned 16.3% leading to a year-to-date return of -12.7% versus the S&P/TSX composite which increased by 16.9% in Q2 and declined -7.5% on a year-to-date basis.
In Canada, the best Q2 sectors were Info-Tech up 68.2%, Materials up 41.6% and consumer discretionary up 32%. The worst sectors were telecommunication services down 2.1%, Utilities up 2.7%, and Financials up 4.8%.
The NQICA’s worst performers in the second quarter were Evertz with a return of -14.3% as the company has been affected by the shutdown of professional sports, Fortis declined by 3.9% given the company’s profile was less attractive during the recovery and Winpak with a return of -3.3% caused by lower than expected sales and profits.
On the other hand, the best results in the second quarter were TFI International with a return of 56.2% as the acquisition of Gusgo Transport has been well received by the market, Canadian Tire jumped 40.1% as the retailer kept its stores open and was able to protect its profits and Parkland Corp. grew by 39.1% helped by rising oil prices.