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CAD July Market Performance

The CAD strengthened by 0.4% vs. the USD during the month.

Noteworthy Developments

Equity markets (MSCI ACWI Index) continued to appreciate strongly and were up 3.3% in July in CAD (+3.7% in USD). Once again, gains were widespread across all major regions and style factors. The CAD strengthened by 0.4% vs. the USD during the month.

Global Equities

Global equities were up 3.3% in CAD (+3.7% in USD) with widespread gains across major regions. The S&P 500 was up 2.8% in CAD with performance driven by a combination of favorable economic data, continued progress with regards to falling inflation, and better than expected corporate earnings. International developed stocks (MSCI EAFE Index) were up 2.8% as corporate earnings held up despite economic data continuing to weaken relative to expectations in Europe and core inflation remaining high in the Eurozone as well. Emerging market equities (MSCI EM Index) were up 5.8% with strong performance driven by the 10.3% appreciation in Chinese equities following increasing Chinese government focus on actions aimed at stimulating the economy (pledges for property developers, reductions in lending rates, targeted areas of fiscal stimulus, etc.). Globally, both growth and value stocks performed well and were up 2.8% and 3.7% respectively. Globally, cyclicals such as energy and financials performed best (+6.2% and +5.0%) while defensive sectors such as healthcare, utilities and consumer staples performed worst (+1.1% to +1.6%). Finally, US Small caps were up 5.8% (outperforming large caps which were up 2.8%) as US recession fears continued to abate while inflation data came in better than expected.

Fixed Income

The benchmark Canada Broad Market Bond Index was down 1.1% for the month, with Canadian government bonds down 1.1%, provincial and municipal bonds down 1.4% and corporate bonds down 0.4%. Interest rates increased over the month while credit spreads slightly narrowed.


The HFRX Global Hedge Fund Index was up 0.1% in CAD (+0.5% in USD) for the month, with most strategies generally performing well. Directional strategies such as long/short equity and credit were up +0.3% in CAD (+0.7% in USD). Merger-arbitrage strategies and event-driven strategies were up 0.5% in CAD (+0.9% in USD) while global macro / trend-following strategies were down 1.5% in CAD (-1.1% in USD) mainly due to declines of 2.1% in CAD from systematic trend-following managers.


 Carlson: +1.3% in CAD (+1.7% in USD)

Strong performance driven by general narrowing of deal spreads coupled with favorable dynamics around certain transactions such as Microsoft – Activision.

Eminence: +6.5% in CAD (+6.9% USD)

Outperformed the MSCI World Index and S&P Midcap Index (+3.4% and +4.1% respectively) with outperformance driven by acquisition of large software position New Relic (+28.3%) and other names having positive reactions to Q2 earnings.

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