Natixis Canada Blog

Canadian Bond Market Seesaws in January as Investors Discern the Impact of the Change in U.S. Government

 

Jeff Herold
Jeff Herold, Portfolio Manager, NexGen Canadian Bond Funds

The Canadian bond market experienced a seesaw month as investors tried to discern the impact of the change in the United States’ government. After a weak finish to 2016, with lower bond prices and higher yields, it appeared that in January the market was catching its breath and evaluating whether it had discounted too much following the election of Donald Trump as U.S. president. Slightly higher yields for long-term bonds resulted in lower prices that caused the value of the overall index to decline marginally. The FTSE TMX Canada Universe Bond index returned -0.12% in January.

Read More…

Key Indexes Rebounded as Investors Absorbed the Implications of U.S. Presidential Election in Q4 2016

Oakmark Natixis Portfolio Managers
William Nygren; Kevin Grant; Michael Mangan, Harris Associates, Co-Managers, Oakmark Natixis Funds

Immediately following the presidential election, U.S. index futures plunged and at one point, futures for the Dow Jones Industrial Average dropped nearly 900 points*. Surprisingly, as investors absorbed the implications of this political sea change, key indexes rebounded and ended higher on November 9. The Dow went on to close at a record high level on November 10 and finished up for the quarter. Financials led the advance, first benefiting from investors’ hopes that the new Republican administration would roll back industry regulations and second, from the Federal Reserve’s (Fed) decision to raise short-term interest rates for the first time in 2016. Citing signs that the economy has improved, the Fed also stated it intends to raise rates three times in 2017. Similarly, optimism that policy makers will carry through on promises of considerable infrastructure spending helped share prices in the industrials and materials sectors and the pledge to expand domestic oil and gas production boosted energy companies’ shares.

Read More…

U.S. Election Results Sway Global Markets in Q4 2016

 

David G. Herro & Michael Manelli, Harris Associates, Portfolio Managers of Oakmark International Natixis Funds

Major global market movements in Q4 were largely influenced by the results of the U.S. presidential election in November. Although futures for the Dow Jones Industrial Average dropped nearly 900 points* in the immediate aftermath of the election, investors surprisingly absorbed the implications of this political sea change. Subsequently, key indexes rebounded and the Dow went on to close at a record high level on November 10 and finish up for the quarter. Financials led the advance, first benefiting from investors’ hopes that the new Republican administration would roll back industry regulations and second from the Federal Reserve’s (Fed) decision to raise short-term interest rates for the first time in 2016. Citing signs that the economy has improved, the Fed also stated it intends to raise rates three times in 2017.

Read More…

Anticipation of Pro-Growth Economic Policies Plus Positive Economic Reports Helped Propel Equity Market in Q4

Paul Stewart; Michael Buckius; Kenneth Toft; Daniel Ashcraft; Co-Managers, Gateway Low Volatility U.S. Equity Fund

The S&P 500® Index gained 3.82%* for the fourth quarter (in Canadian dollar terms, the return for the quarter was 6.28%), resulting in a total return of 11.96%* for the year. The quarter began with a 1.82%* loss for the month of October, followed by returns of 3.70%* and 1.98%* for November and December, respectively.

Read More…

Preferred Shares Immune to the Volatility Arising From the Changeover in U.S. Administration

Jeff Herold
Jeff Herold, Portfolio Manager, NexGen Canadian Preferred Share Fund

The Canadian preferred share market started 2017 with a bang, outperforming investment grade bonds, common stocks and even junk bonds by a significant margin. Unlike other securities, preferred shares were immune to the volatility arising from the changeover in the U.S. administration. In part, the strong performance of preferred shares reflected investors’ ongoing search for attractive yield combined with limited new issue supply. In addition to investors purchasing outstanding individual issues, preferred share ETF trading volumes hit a record high in January. We believe that much of the ETF activity did not reflect simple buying of the asset class, rather, it was hedging of structured notes linked to the preferred share market. The S&P/TSX Preferred Share index returned 4.05% in January.

Read More…

Invest better: Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer.