GLOBAL EQUITY GROWTH FUND
The MWG Global Equity Growth Fund Series O rose 5.7% in June, beating the 3.4% rise in its benchmark, and is now up 8.8% year to date. The Fund’s top three performers in the month were Hammond Power Systems (+27%), Hudbay Minerals (+18%) and Nvidia (+16%), while Accenture (6%), Adyen (-5%) and Aon (-5%) were the largest detractors.
Portfolio Managers’ Summary
Markets continued their sharp rebound from the April tariff tantrum this past month, led by AI enablers such as Nvidia, Meta, Qualcomm and Broadcom, all of which returned +10% in June, as well as beneficiaries of capital investment in data centers like electrical systems company Hammond Power Systems.
Copper prices also approached record levels, benefiting mining companies Hudbay and Major Drilling. Major Drilling indicated that major global miners will raise exploration spending by 20% year-over-year, which should provide a good tailwind for revenue.
During the month, we started a position in Tourmaline while exiting our position in Whitecap.
INCOME GROWTH FUND
The MWG Income Growth Fund Series O increased 3.0% in June, in line with the 3.2% return for its benchmark. The Fund is up 5.4% year-to-date. Kering (+10%), Exchange Income (+9%) and Whitecap Resources (+8%) were the top performers, while PHX Energy Services (-7%), Enbridge (3%) and Rio Tinto (-3%) were the top detractors. The Fund’s yield was 5.9% at month-end.
Portfolio Managers’ Summary
Ongoing war and geopolitical turmoil in the Middle East led to a resurgence in the energy sector in June, following a weak pricing period after OPEC announced plans for higher output levels.
The Canadian Dollar has increased from multi-year lows in winter 2025 as tariff concerns eased and the US Dollar weakened globally. We believe lower tariffs and a stronger Canadian dollar will set up the Bank of Canada for additional interest rate cuts this fall. This should benefit companies that pay sustainable and growing dividends like those in the fund.
In June, we added a very small starter position in PHX Energy Services, a leading drilling services contractor with a 9% yield.
This Month’s Portfolio Update is written by our Head of Research, Jamie Murray, CFA.
The purpose is to provide insight into our portfolio construction and how our research shapes our investment decisions. As always, we welcome any feedback or questions you may have on these monthly commentaries.