category: News and Insights

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.

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

Source: Next Edge Capital Corp. & Bloomberg LLP. as of June 30, 2026

Hudbay Minerals Inc. (NYSE, TSX: HBM) was a top performer in the month. It reported strong first-quarter results to begin May, with revenues up 27% year-over-year and record-high Adjusted EBITDA of $421.9 million. Global copper demand continues to pressure supply, supporting strong copper prices in the near term. Hudbay is set to benefit as it expects its copper production to average 147,000 tonnes per year over the 2026 to 2028 period, an increase of 24% over 2025 levels, supported by optimization at Copper Mountain in B.C. and through improvements at its Constancia mine in Peru.

Other top performers included Constellation Software Inc. (TSX: CSU), Linamar Corp. (TSX: LNR), TFI International Inc. (NYSE, TSX: TFII) and Brookfield Infrastructure Partners LP (NYSE, TSX: BIP).

Options commentary

Over the month of May, the Fund’s option program has performed as it was intended to do: harvest premium steadily while maintaining flexibility to write more when conditions reward it. The team actively covered, rolled, and rewrote positions through a heavy stretch of earnings and the regular May expiry, banking premium on higher-volatility holdings and then looking to reload on subsequent strength. The Fund currently sits with substantial room to be opportunistic. Weighted implied volatility has settled into the lower end of its range, reflecting a calmer options environment than earlier in the spring. Importantly, the Fund is only partially written against its potential, leaving meaningful room to add or increase call writing across a broad list of holdings. That unused capacity is deliberate: it gives the team the ability to write more premium selectively when volatility and prices firm up, rather than being fully committed when premiums are thin.

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

Source: Next Edge Capital Corp. & Bloomberg LLP. as of May 31, 2026

Sam LaBell, our Portfolio Manager, appeared on BNN Bloomberg’s Trading Day show to discuss the state of the Canadian economy

The fund’s top performers included TFI International Inc. (NYSE, TSX: TFII) in April, as the company reported Q1 earnings that exceeded estimates and provided better-than-expected Q2 guidance. Management’s Q2 EPS range reflects a year-over-year EPS growth of 12-19%. Management expects sequential Operating Ratio improvements of 600-700bps in Less-than-truckload, 200-300bps in Truckload and 75-125bps in Logistics. TL volumes
exited Q1 up 8% year-over-year into April, with flatbed contract renewals that are trending to high-single to low-double digit growth.

Bombardier Inc. (TSX: BBD.b) rose in April after the company signed a $300-million services agreement with Vista and increased its free cash flow guidance from a range of $600 million to $1 billion, to over $1 billion, exceeding street estimates. The company increased its order backlog to $20 billion on a book-to-bill of 3.6x. Demand remains strong, particularly at the high end of the market, while services and defence continue to scale as higher-margin, recurring revenue streams.

North American financials: Canadian Imperial Bank of Commerce (NYSE, TSX: CM), Toronto Dominion Bank (NYSE, TSX: TD) and Sun Life Financial Inc. (NYSE, TSX: SLF) rallied in April following the ceasefire deal between the U.S. and Iran, and private credit concerns dissipated after a blowout Q1 U.S. bank earnings season. The U.S. Federal Reserve kept the benchmark interest rate at between 3.50% and 3.75%, which is supportive of stabilizing net interest margins. The insurance and asset management sectors also benefit from higher investment incomes on fixed-income portfolios in a higher-for-longer rate environment.

As mentioned in previous commentaries, the Veritas Next Edge Premium Yield Fund employs an active option strategy to generate efficient yield. Not all equities are created equal, and we typically do not blanket write options on the entire Fund portfolio. Typically, much of the yield is geared towards the higher volatility Fund portfolio names. As a result, we categorize our equities into two distinct volatility buckets: the higher bucket would include names with 60-day implied volatility greater than 35, and a lower volatility bucket would be names that have a 60-day implied volatility under 35. The higher volatility bucket represents approximately 30.3% of the Fund’s portfolio and includes names such as Agnico Eagle Mines Ltd., Bombardier Inc., and Hudbay Minerals Inc. These names have historically generated premiums for the Fund consistently in excess of 4%. For the lower volatility names, we still will write on a number of the names; however, we typically employ a much more opportunistic approach, whereby waiting for potential earnings, or waiting for sharp rallies as opportune times to write on these positions. For example, when Rogers Communications Inc. soared approximately 15% in April, we were unwritten and waited for an opportunity to write post-rally, and we did. A situation where during the month we were able to reap both capital appreciation on the stock and then attractive yield premium shortly after that as well.

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

Source: Next Edge Capital Corp. & Bloomberg LLP. as of April 30, 2026

Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to discuss his outlook on the markets

Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to the market’s reaction to US President Trump’s primetime address

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

Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to discuss oil prices and stocks.

 

Agnico Eagle Mines Ltd. (NYSE, TSX: AEM) was the top performer for the Veritas Next Edge Premium Yield Fund in February 2026, as gold prices increased 8%. AEM delivered in-line Q4 earnings results and reiterated its 2026-2028 production outlook of 3.3-3.5M oz. We expect year-over-year margins to increase significantly as higher commodity pricing offsets higher royalties, a stronger Canadian dollar, and inflation. AEM is expected to accelerate several growth projects this year, including Detour Lake, Upper Beaver, and Hope Bay.

Other top performers included Hudbay Minerals Inc. (NYSE, TSX: HBM), Bombardier Inc. (NYSE, TSX: BBD.b), Canadian Natural Resources Ltd. (NYSE, TSX: CNQ) and Canadian National Railway Co. (NYSE, TSX: CNR).

February was also an active month for the Veritas Next Edge Premium Yield Fund’s option overlay, with 55 call writes executed across 27 different companies.

Visit Next Edge to learn more about the fund and read the full monthly commentary.

Sources: Veritas Asset Management, Eikon, Bloomberg, as of February 28, 2026

Our Portfolio Manager, Sam LaBell, joined BNN Bloomberg to discuss the markets amid tech profit concerns.