Alimentation Couche-Tard Inc. (TSX: ATD) was a top performer in June. It reported fiscal Q4 earnings results that exceeded consensus estimates, supported by better-than-expected fuel margins across all regions, and U.S. merchandise sales that also exceeded expectations. ATD continues to outperform peers on these metrics, which is a testament to its merchandising expertise and supply chain capabilities.
Great-West Lifeco Inc. (TSX: GWO), Sun Life Financial Inc. (NYSE, TSX: SLF), Royal Bank of Canada (NYSE, TSX: RY) and Toronto-Dominion Bank (NYSE, TSX: TD) rose in June and were also top performers, as the decision by the Bank of Canada to keep its policy rate at 2.25% provided a stable backdrop for interest rates and net interest margins. Continued strength in capital markets also raised expectations for earnings in these companies’ wealth management businesses. Lastly, banks are expected to benefit from an easing of capital requirements by the Office of the Superintendent of Financial Institutions (OSFI), which announced that it would lower the Domestic Stability Buffer (DSB) to 3.0% from 3.5% of total risk-weighted assets.
Options commentary
In the first half of the month, due to gold stocks correcting significantly since their highs in March, the Fund covered our short/written calls into that weakness. Some premium was rewritten into a bounce on those positions. Written premium at mid-month was in the top quartile of the Fund’s targeted range. A significant premium was banked (option positions closed) prior to the final week of the month as Canadian markets retreated and most sectors declined. This active nature allows the Fund to capture much of the premium previously written into weakness, and then look to rewrite on bounces to capture additional premium.
Although the Fund’s portfolio weighted implied volatility (IV) is down from the end of Q1 by approximately 20%, one metric that impacts option premium, the active nature of the option strategy, has allowed the team to write multiple times on various positions, capturing additional premium.
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Source: Next Edge Capital Corp. & Bloomberg LLP. as of June 30, 2026