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 The company has been replaced by Brookfield Asset Management (BAM.A) which is in the top of its sector.