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.