Monthly commentary - Mackenzie Greenchip Team

Portfolio Manager Monthly Insights

Key takeaways

The Greenchip strategy outperformed slightly for the month, with a number of significant price changes in each direction.  

Canadian Solar, actively trading at the end of October, continued to move on very high volume, gaining, at one point, more than 50% for a second successive month, before settling on a more prosaic 20% increase.

Other gainers included Alstom, on a first half update with strong orders, revenues, and cash flow guidance; Eletrobras, now renamed AXIA, on its own report showing increasing earnings power in its stable of hydro generation assets in Brazil; and copper miners First Quantum, Capstone, and Hudbay Minerals.

Macroeconomic recap

Global equity markets took something of a breather in November, turning in a flat performance after very strong gains for the year to date. With certain broad usage metrics for AI indicating little recent growth, concerns over bubbles in AI and cryptocurrencies — even in spite of another record earnings report from Nvidia — led to heavy mid-month losses in tech. A third successive end-of-month recovery largely reversed these losses, driven by renewed expectations for another interest rate cut at the Federal Reserve’s December meeting. As the US government shut down came to an end — with little accomplished in terms of inter-party compromise — statistical reports were released from the past several months that were interpreted to show inflation softer than expectations. Countering this narrative, electricity prices have surged across the US to the point where they have become a top political issue, and commodity prices — especially for metals — continued to surge, with copper now up nearly 25% for the year, gold more than 50% and silver nearly doubling. The conflicting aims of supporting asset markets with easy money and making life more affordable for the average worker by supporting real wage growth are becoming increasingly impossible to reconcile.

Current positioning and Outlook

The Greenchip strategy outperformed slightly for the month, with a number of significant price changes in each direction. Canadian Solar, actively trading at the end of October, continued to move on very high volume, gaining at one point more than 50% for a second successive month, before settling on a more prosaic 20% increase. At the end of the month, the company announced restructuring plans that it hopes will ensure its eligibility to receive tax credits provided by the US for domestic manufacturing of solar and battery storage equipment. Other gainers included Alstom, on a first half update with strong orders, revenues, and cash flow guidance; Eletrobras, now renamed AXIA, on its own report showing increasing earnings power in its stable of hydro generation assets in Brazil; and copper miners First Quantum, Capstone, and Hudbay Minerals, largely on the backs of the aforementioned gains in the price of the metal. On the downside, North American utilities Eversource and Northland both experienced significant drawdowns of more than 10%. Eversource’s plan to sell a relatively small Connecticut water utility was rejected by the state regulator, while Northland cut its dividend to provide a buffer for growth ambitions after early revenues on a new offshore wind project in Taiwan were delayed. Although very different companies and different challenges, in both cases we see unappreciated value in company equity, but also expect that some patience will be required before it is realized.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

The contents of this document (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) are not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

This document may contain forward-looking information which reflect our or third party current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein. These risks, uncertainties and assumptions include, without limitation, general economic, political and market factors, interest and foreign exchange rates, the volatility of equity and capital markets, business competition, technological change, changes in government regulations, changes in tax laws, unexpected judicial or regulatory proceedings and catastrophic events. Please consider these and other factors carefully and not place undue reliance on forward-looking information. The forward-looking information contained herein is current only as of November 30, 2025. There should be no expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

This material is for informational and educational purposes only. It is not a recommendation of any specific investment product, strategy, or decision, and is not intended to suggest taking or refraining from any course of action. It is not intended to address the needs, circumstances, and objectives of any specific investor. Mackenzie Investments, which earns fees when clients select its products and services, is not offering impartial advice in a fiduciary capacity in providing this sales and marketing material. This information is not meant as tax or legal advice. Investors should consult a professional advisor before making investment and financial decisions and for more information on tax rules and other laws, which are complex and subject to change.

©2025 Mackenzie Investments.  All rights reserved.