Natixis Canada Blog

Month: June 2016


J. Zechner & Associates: Brexit Commentary

Jeff Herold
Jeff Herold, J. Zechner Associates, PM of NexGen Canadian Preferred Share Fund, NexGen Canadian Bond Fund, NexGen Canadian Diversified Income Fund

The unexpected Brexit vote to pull the United Kingdom out of the European Union has resulted in considerable volatility across financial markets in the last few days. Equity markets have declined over fears of slower economic growth, and potential trade disruptions as free trade agreements have to be re-negotiated. As well, there are some concerns that British and other European banks may have suffered significant losses as a result of the turmoil in the markets, the potential for a British recession, and the plunge in the value of the pound.

Read More…

Baker Gilmore & Associates: Brexit Commentary

BG_web
Darren Ducharme & Harold Scheer, Baker Gilmore & Associates, Portfolio Managers of NexGen Corporate Bond Funds

The outcome of last Thursday’s referendum to decide whether the United Kingdom would leave or remain in the European Union (“BREXIT”) has shocked global financial markets. With betting markets, polls and most political analysts pointing to a “remain” win in the days before the vote (see chart 1 below), the announcement that the “leave” camp had won by a 52% to 48% margin led to a sharp selloff in riskier assets and a heightened demand for  “safer” government bonds.

Read More…

U.S. Equities Mixed for the Month of May

Dennis Ruhl, CFA J.P. Morgan Asset Management, PM of NexGen US Growth Funds

U.S. equity markets seesawed for most of the month as early economic data disappointed, while hard commodities, such as iron ore, experienced steep declines as Chinese policymakers introduced measures to limit trading speculation. Investor sentiment turned positive towards month’s end as Federal Reserve (Fed) officials reiterated the potential for interest rate increases in the coming months. Solid releases on the U.S. consumer and housing market also encouraged investors. Small-cap stocks measured by the Russell 2000 Index outperformed large-cap stocks as represented by the S&P 500 Index for the fourth consecutive month, gaining 2.3%* and 1.8%*, respectively.

 

Read More…

Global Government Bond Yields Mixed; US Yields Higher On Fed

BG_web
Darren Ducharme & Harold Scheer, Baker Gilmore & Associates, Portfolio Managers of NexGen Corporate Bond Funds

Movements in global government bond yields were mixed during the month, even as most yield curves flattened; yields were generally higher in the US following hawkish signals from the Federal Reserve led investors to increase the probability of a rate hike in June or July, but lower in most other markets due to softer than expected data. Credit spreads widened slightly after tightening significantly in February and March; however, excess returns were still mostly positive due to attractive yield carry. Developed market equities moved modestly higher, while emerging market equity markets fell, led by declines in Brazil and Russia. Commodity returns were uneven, with energy prices continuing their rebound and metal prices falling. The US dollar rallied against most major currencies.

Read More…

US Equities Rise in May on Favourable Economic Data

Donald Nesbitt & Mikhail Alkhazov, Ziegler Capital Management, Portfolio Managers of NexGen US Dividend Plus Funds

Market Summary:

U.S. equities drifted sideways in the early half of May, but picked up steam in the second half of the month on optimism surrounding favorable April data regarding housing, retail sales and industrial production. The S&P 500 Index returned 1.8%* in May, while the S&P 400 and the S&P 600 Indices returned 2.3%* and 1.7%*, respectively. Growth-oriented equity management approaches outperformed value-tilted strategies in May, as investors rewarded companies exhibiting better price momentum and stronger earnings estimates. The Russell 1000 Value Index increased 1.6%* in May, led higher by the Information Technology (+7.0%*), Health Care (+2.9%*), Financials and Consumer Staples sectors, which were both up 2.1%*, while the Materials (-3.0%*), Consumer Discretionary (-1.6%*) and Energy (-1.2%*) sectors trailed.

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.