Purpose Enhanced US Equity Fund November Commentary

Purpose Enhanced US Equity Fund November Commentary

Fund Highlights

  • The Fund outperformed the broad market this month as value equities made a modest comeback. Value securities are poised to fare better than their growth counterparts in a rising interest rate environment moving forward. The S&P500 returned 0.3% in November.
  • Security selection in the energy sector helped the Fund beat the index in November. PBF Energy was the best performer jumping 20% in November on news of securing financing for the pending acquisition of Torrence refinery from ExxonMobil.
  • Short futures positions ended slightly positive as well.
  • The Fund completed a monthly equity rebalance on the last day of the month, replacing 10 names.
  • With respect to the currency-hedged shares, the Fund continued to hedge U.S. dollar currency exposure maintaining a net U.S. dollar exposure at approximately 8% of the Fund’s NAV.

Market Commentary

Markets consolidated after experiencing heightened volatility over the last 3 months. The terror attack in Paris and the U.S. Thanksgiving holiday gave markets time for pause, especially ahead of an event filled December where the FOMC, ECB and OPEC all have significant meetings to close out the year. In the U.S., payroll data came in stronger than expected which fueled market expectations for a December rate hike. Despite the prospect for higher rates, the yield curve flattened as the Fed signaled a “dovish hike” and a gradual rise through 2016. Canada saw sluggish economic data as cyclical sectors continued to experience a gloomy outlook with no imminent signs of easing. Commodities faced further weakness as crude and copper fell over 10% for the month. In currencies, the loonie fell 2% as the U.S. saw broad strength. European equities outperformed while the Euro sold off near the lows of the year, as markets anticipated further dovish measures from the ECB.

Return to Post Listing

Fields marked with an * are requiredLES CHAMPS MARQUÉS D'UN * SONT OBLIGATOIRES
Fields marked with an * are requiredLES CHAMPS MARQUÉS D'UN * SONT OBLIGATOIRES