Portfolio Manager’s November Comment for October Results

In October, the S&P/TSX grew by 5.6%, the S&P 500 surged by 8.1% while the MSCI ACWI ex USA rose by 3%.

At the end of the 12-month period ending October 31, the S&P/TSX tumbled by 4.9%, the S&P 500 decreased by 14.6% while the MSCI ACWI ex USA fell by 24.4%.

In October, NQICAT increased by 5.6% while it decreased 4.3% on an annual basis.

The best TSX sectors for the month of October were Energy up 15%, Industrials up 13.1% and Information Technology up 6.8%.

The worst performing sectors were Utilities 5.0%, Materials down 2.9% and Financials up 0.5%.

The best monthly performers in NQICAT were Canadian Natural Resources (CNQ) up 28.2%, Imperial Oil (IMO) up 23.9% and ARC Resources (ARX) up 16.3%.

At the opposite, the weakest contributors were Richelieu Hardware (RCH) down 4.6%, TFI International (TFII) down 0.5% and Brookfield Infrastructure L.P. (BIP.UN) down 0.3%.

2 stocks were sold and bought in the strategy.

The strategy required an increased exposure to the Energy and Utilities sector and an exposure reduction in Financials and Consumer Discretionary.

Brookfield Asset Management (BAM.A) and Canadian Tire (CTC.A) had the lowest SP score of their sector therefore they needed to be sold. Imperial Oil (IMO) and Brookfield Infrastructure L.P. have been added to the strategy due to their high SP score.