Tuesday April 14th, 2015
The Fund seeks to provide shareholders with attractive long-term capital appreciation by investing in a high conviction portfolio of North American equities. The Fund invests in a portfolio of North American equities held by some of world’s most renowned investment managers.
The Fund was negative in March. The best performing sectors were consumer discretionary, healthcare and staples. The best performing names were Sunedison, Charter Communication and HCA. The worst performing sectors were tech, materials and industrials. The worst performing names were Micron, Microsoft and Monsanto.
The portfolio continues to hedge USD currency exposure maintaining a net USD exposure at approximately 10% of the Fund’s NAV.
North American markets stalled after rallying the previous month and ended lower in March. There was much focus on the FOMC meeting this month with many expecting a strong push for a rate hike later this year in light of continued strong job growth. As anticipated, the Fed removed the word “patient” from its statement, however there were some dovish undertones that resulted in a rally in bonds as the outlook for a potential hike was pushed back.
In commodities, oil tested new cycle lows near $40, but managed to bounce into month end on the back of rising Middle East tensions as Saudi Arabia was drawn into the conflict in Yemen.
The USD dollar continued to grind higher, especially against Eurozone currencies. CAD saw further weakness, despite rates being kept on hold, as the Bank of Canada warned of economic slowdown resulting from the shock in oil prices.