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.