Tetrem general comment 2010-Q4

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Description

Fourth Quarter 2010 Market Commentary Tetrem Capital Management Ltd. Portfolio Manager, CI Canadian Investment Fund Equity markets finished the year on a strong note, with economically sensitive companies leading the way. Sentiment improved in the fourth quarter, stemming in large part from developments in the U.S., particularly the extension of the Bush-era tax cuts and the resumption of quantitative easing (“QE2”) by the Federal Reserve. Corporate managements’ general outlook is more bullish and they are “walking the walk” by raising capital spending, which is positive for earnings and the broad economy. In Canada, rising commodity prices pushed up the heavyweight materials and energy sectors, acting as a powerful tailwind for the S&P/TSX Composite Index. In addition, a sharp rise in bond yields (i.e. falling bond prices) emboldened investors to incrementally shift out of bonds and into equities. CI Canadian Investment Fund benefited from these phenomena and rose slightly more than the index during the quarter. For the full year, the fund’s Canadian component outperformed the benchmark, but the fund overall underperformed because the U.S. and international components lagged the Canadian market – even though they outperformed their own geographic benchmarks. The fund’s fourth quarter performance in Canada was lifted by holdings in the energy, consumer discretionary and financial sectors. Conversely, holdings in the materials sector detracted ...

Informations

• Publié par: Hamoh
• Nombre de lectures: 10
• Langue: English

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