Air Canada (TSX: AC) was the top performer of the Veritas Next Edge Premium Yield fund in November. AC’s shares continued to rise in the month following its new labour agreement with its pilots. AC’s third-quarter results demonstrated its broad earnings power and allowed the company to raise its 2024 EBITDA target to $3.5 billion, from $3.1 to $3.4 billion previously.
Lumine Group Inc. (TSX Venture: LMN) was the second top performer, as it rallied on third-quarter revenues that topped estimates, and it posted a small net profit compared to a loss in the same quarter the year prior. Lumine showed progress on two prior acquisitions, Nokia and CASA, which were acquired at discounts that reflected short-term revenue pressures. By stabilizing these businesses, Lumine demonstrated it can integrate larger deals, which will be key as it seeks to replicate the success of its parent corporation, Constellation Software (TSX: CSU).
Other top performers were AtkinsRealis Group Inc. (TSX: ATRL), Sun Life Financial (NYSE, TSX: SLF) and Manulife Financial Corp. (NYSE, TSX: MFC).
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
AtkinsRéalis Group Inc. (TSX: ATRL) was the top performer in the Veritas Next Edge Premium Yield Fund in October, as the shares rose on growing investment interest in the nuclear industry. Revenues in ATRL’s Nuclear segment are set to grow 30% to 35% in 2024, contributing just over one-fifth of the company’s earnings before interest and taxes.
Having finalized a new deal with its pilots, Air Canada’s (TSX: AC) third-quarter results demonstrated its broad earnings power. The company reported $2.00 billion in earnings and raised its 2024 EBITDA target to $3.50 billion, from $3.10 billion to $3.40 billion previously.
The Fund’s investments in gold producers also performed well in October as gold prices rose more than US$100 per ounce to finish at US$2,738, up 3.90% on the month. We have selected our holdings of Agnico Eagle Mines Ltd. (TSX, NYSE: AEM), Wheaton Precious Metals Corp. (TSX, NYSE: WPM), Barrick Gold Corp. (TSX: ABX, NYSE: GOLD) and Lundin Gold Inc. (TSX: LUG) based on their potential for volume growth and cash flow improvement, as well as their operational capabilities and reduced geographic risk.
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
Our Portfolio Manager, Sam LaBell, appeared on BNN Bloomberg with Andrew Bell to discuss his take on Teck Resources Ltd, why he prefers gold over copper and why he favours Air Canada.
Our Portfolio Manager, Sam LaBell, appeared on BNN Bloomberg with Andrew Bell to discuss how investors can expand their portfolios within the Canadian market.
In September, the market reacted positively to news that Bombardier Inc. (TSX: BBD.b) CEO Eric Martel had met with the Chairman of the Adani Group to explore possibilities for collaboration in India’s growing aviation sector, specifically in the aftermarket services and repair segment. While talks are in their early stages, they demonstrate Bombardier’s global opportunities and reach.
Cogeco Communications Inc. (TSX: CCA) shares continued to gain traction on management’s updated plans to balance network investments and free cash flow. With improving capital efficiency and growing prospects for dividend growth, investors are once again taking notice.
Other top performers include Shopify Inc. (NYSE, TSX: SHOP), Manulife Financial Corp. (NYSE, TSX: MFC) and Sun Life Financial Inc. (NYSE, TSX: SLF).
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
In August, Shopify Inc. (NYSE, TSX: SHOP) reported second-quarter revenue growth that exceeded street estimates and increased its third-quarter guidance. Shopify’s shares should continue to perform well as the company outpaces U.S. e-commerce growth and expands its market share of larger enterprise customers.
Quebecor Inc (TSX: QBR.b) rose in August on better-than-expected wireless additions and evidence that its pricing strategies are stabilizing profitability. With an estimated free cash yield of 14% over the next twelve months, QBR remains undervalued.
Other top performers include Lundin Gold Inc (TSX: LUG), Sun Life Financial Inc. (NYSE, TSX: SLF) and Barrick Gold Corp. (NYSE: GOLD, TSX: ABX).
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
Our Portfolio Manager, Sam LaBell, appeared on BNN Bloomberg with Amber Kanwar to discuss the health of consumer spending and investing strategies to withstand market weakness.
The Veritas Next Edge Premium Yield Fund’s positions in Agnico Eagle Mines Ltd. (NYSE, TSX: AEM), Wheaton Precious Metals Corp. (NYSE, TSX: WPM) and Barrick Gold Corp. (NYSE: GOLD, TSX: ABX) were among the largest contributors to July’s performance as gold prices rallied more than 4%. All three companies posted
second quarter volume increases that benefitted from higher metal prices, while also advancing their long-term plans for growth.
Cogeco Communications Inc. (TSX: CCA) and TC Energy Corp. (NYSE, TSX: TRP) were also amongst the top performers.
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
The Veritas Next Edge Premium Yield Fund’s position in Shopify Inc. (NYSE, TSX: SHOP) was a top contributor to the fund’s June performance. SHOP rebounded in June as U.S. retail sales data strengthened and investors continued to weigh management’s Q2 revenue guidance. Despite near-term economic headwinds and the company’s projected increased marketing spend, we note that SHOP is still growing at a healthy clip, with first-quarter Subscription Solutions revenues increasing 34% year-over-year and Gross Merchandise Value (GMV) up 21%.
Restaurant Brands International Inc. (NYSE, TSX: QSR), Constellation Software Inc. (TSX: CSU), HydroOne Ltd. (TSX: H) and AtkinsRealis Group Inc. (TSX: ATRL) were also amongst the top performers.
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
The Veritas Next Edge Premium Yield Fund’s position in Bombardier Inc. (TSX: BBD.b) was its biggest contributor to fund performance in May. At its May investor day, the company laid out its plans to grow its high-margin aftermarket and defense businesses, as well as increase its presence in the pre-owned jet market. Bombardier’s success in building out its backlog and generating free cash flow has created renewed enthusiasm for the company, narrowing its valuation gap against peers.
Shares of Dollarama Inc. (TSX: DOL) continued to gain momentum in May following very strong Q4 earnings in early April. This saw the retailer boost EBITDA by 20% year-over-year on 8.7% same-store sales growth. Dollarama continues to pick up traffic from value-conscious shoppers looking to stretch their budgets in the face of inflationary pressures.
Nutrien Ltd. (TSX, NYSE: NTR), Agnico Eagle Mines Ltd. (TSX, NYSE: AEM) and Rogers Communications Inc. (TSX: RCIb, NYSE: RCI) were also amongst the top performers.
As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.
Visit Next Edge to learn more about the fund and read the full monthly commentary.
