Natixis Canada Blog

NexGen US Growth Fund:


U.S. Equities Advance in April on Better-Than-Expected Earnings

Dennis Ruhl, Portfolio Manager, NexGen U.S. Growth Funds

U.S. equity markets advanced modestly in April as better-than-expected corporate earnings were able to offset soft economic releases. Stock prices drifted lower in the first half of the month as expectations for the implementation of President Trump’s ambitious pro-growth agenda continues to fade and declining bond yields reignited investor concerns of tepid nominal growth. As the first-quarter earnings season progressed, U.S. equity markets were able to recover earlier losses as better-than-expected results from the industrial sector in particular caused investors to question whether demand trends are stronger than recent economic releases suggest. Small-cap stocks measured by the Russell 2000 Index slightly outperformed large-cap stocks as represented by the S&P 500 Index, as both indices rose 1.1%* and 1.0%*, respectively.

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Volatility Returns to U.S. Equities as Confidence in Trump’s Pro-Growth Agenda Fades

Dennis Ruhl, Portfolio Manager, NexGen U.S. Growth Funds

Volatility returned to U.S. equity markets as investors began to question the ability of President Trump to fully implement his pro-growth agenda. The S&P 500 Index reached a new all-time closing high of 2395.96 on March 1. However, equities started to drift lower as opposition to the American Health Care Act of 2017 (AHCA) increased while crude oil prices fell below $50.00 a barrel. The S&P 500 experienced its first 1%* decline since October 2016 on March 21as it became apparent the AHCA would not have the votes to pass through the House of Representatives. Equities recovered in the month’s final week as President Trump immediately shifted his focus to tax reform. Small-cap stocks measured by the Russell 2000 Index gained 0.13%* and barely outperformed large-cap stocks as represented by the S&P 500, which rose 0.12%*.

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U.S. Equities Climb on Favourable Earnings and Economic Data

Dennis Ruhl, Portfolio Manager, NexGen U.S. Growth Funds

U.S. equity markets climbed higher consistently throughout February as fourth-quarter earnings results were solid and nominal economic growth continued to strengthen. Despite some theatrics from Washington, optimism remains for President Trump’s pro-growth agenda. The S&P 500 Index reached a new all-time closing high of 2,369.75 on February 27. Large-cap stocks as represented by the S&P 500 Index gained 4.0%*, outperforming small-cap stocks measured by the Russell 2000 Index which rose 1.9%.*

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Markets Hit a New High on Positive Economic Backdrop

Dennis Ruhl, Portfolio Manager, NexGen U.S. Growth Funds

U.S. equity markets continued to advance in January as fourth-quarter earnings results were solid and economic data pointed towards continued growth, which offset declining optimism that President Trump can fully implement his pro-growth agenda. The S&P 500 Index reached a new all-time closing high of 2,298.37* on January 25. U.S. equity markets drifted lower in the month’s final days as President Trump signed executive orders on trade policy and immigration. Investors fear that the president’s stance on trade and immigration are counterproductive to the pro-growth policies he looks to implement. Large-cap stocks as represented by the S&P 500 Index gained 1.9%*, outperforming small-cap stocks measured by the Russell 2000 Index, which rose 0.4%*.

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