CAD February Market Performance

Noteworthy

Continued strong appreciation for global equities as the MSCI ACWI Index rose 2.9% in CAD (+3.2% in USD).  Strong corporate earnings, better than expected US economic data and declining inflation in Europe all contributed to equity market appreciation.  The CAD strengthened by 0.3% vs. the USD during March.  

Global equities

Global equities were up 2.9% in CAD (+3.2% in USD), with all regions performing well.  The S&P 500 and international developed stocks (MSCI EAFE Index) were both up 2.9% in CAD (EAFE index up 4.0% in local currencies).  Emerging market equities (MSCI EM Index) increased by 2.1% in CAD with strong performances by Korean and Taiwanese equities (+4.9% and +7.6% respectively in CAD) which benefitted from strong business fundamentals, especially by semiconductor companies on the back of robust AI demand.  Globally, value stocks (+4.0%) outperformed growth stocks (+1.8%).  From a sector perspective, energy, utilities and financials performed best (+7.6%, +4.8% and +4.0%) while consumer discretionary stocks performed worst (+0.4%). 

Fixed Income

The benchmark ICE BOFA Broad Market Index was up 0.5% for the month as interest rates modestly declined.  Government and municipal / provincial bonds were up 0.5% and 0.4% while corporate bonds were up 0.6%. 

Alternatives

The HFRX Global Hedge Fund Index was up 1.0% for the month in CAD (+1.3% in USD), with substantially all strategies delivering positive performance.  Macro / trend-following strategies performed best at +2.2% while equity market-neutral and multi-strategy funds performed worst (+0.4% and +0.1%).

Comments

Carlson: +5.1% in CAD

Relative outperformance vs. MSCI EM Index (+2.1%) with outperformance driven by Korean and Taiwan semiconductor positions as well as global gold miners (which appreciated significantly as gold prices have risen substantially).