Veritas Next Edge Premium Yield Fund March 2026 Top Performers and Options Update

Fueled by the Iran War, WTI crude increased 51% in the month, and the Fund’s top performers included Canadian Natural Resources Ltd. (NYSE, TSX: CNQ) and Tourmaline Oil Corp. (TSX: TOU). Although the December WTI futures trading in the US$70 range signals that markets expect the conflict to be short-lived, shipping constraints in the Strait of Hormuz are likely to remain a critical chokepoint for global energy and commodity markets. In this environment, CNQ remains well-positioned due to its capital flexibility, which should allow it to take advantage
of improved crude prices with additional drilling. As the top condensate producer in the Montney formation, TOU’s liquids-rich gas production also enjoys a lift from WTI, tied to its 20% liquids weighting overall.

South Bow Corp. (NYSE, TSX: SOBO) rose in March, as the company launched a formal open season seeking binding long-term shipping commitments for a revival of part of the Keystone XL oil pipeline, a move that could boost Canada’s crude exports to the United States by more than 12%.

Restaurant Brands International Inc. (S&P/TSX, NYSE: QSR) rose in March, as the company ramped up its Burger King advertising campaign during the 2026 Oscars as part of its ongoing ‘Reclaim the Flame’ strategy. It also introduced a limited edition Wagyu Wellington burger in the United Kingdom as a feature of its Gourmet King menu.

Enbridge Inc. (NYSE, TSX: ENB) rose in March, as investors increased positions in North American energy infrastructure amid the Iran war. With more than 70% of ENB’s $39 billion capital plan for FY2026 to FY2033 allocated to North American natural gas pipelines, the company is set to significantly grow their footprint and EBITDA.

March 2026 was a strong month for the Veritas Next Edge Premium Yield Fund’s option writing program, as rising geopolitical tensions surrounding the Strait of Hormuz pushed volatility levels notably higher across key TSX sectors. The Fund employs a dynamic approach to strike selection, writing call options at approximately one standard deviation above the current market price. Unlike a static strategy that writes at a fixed percentage out of the money, the Fund’s one-standard-deviation target automatically adjusts with the volatility environment. When volatility
rises, one standard deviation translates into a wider distance from the current stock price, so the Fund’s strikes move higher in lockstep. This means the probability of being called away remains consistent regardless of the volatility regime, while the premiums collected increase as option prices rise with implied volatility. This dynamic relationship is one of the key strengths of the Fund’s approach.

Visit Next Edge to learn more about the fund and read the full monthly commentary, including additional options commentary.

Sources: Veritas Asset Management, Eikon, Bloomberg, as of March 31, 2026

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