Highlights from the First Quarter Edition
A resource for both advisors and investors, the Ivy Quarterly gives perspective on the portfolios, investment philosophy and holdings in a comprehensive format. The Ivy Team discusses world markets and where they are finding value today.
In the first quarter, volatility returned to the market. Spurred by fears of inflation, the S&P/TSX Composite Index, S&P 500 Index and MSCI World Index receded by 8.1%, 6.5% and 6.8%, respectively, within a period of 13 days. While this was a meaningful drop over a short period, valuations remain broadly expensive so it did not lead us into a buying spree.
In Canadian equities, we did initiate new positions in Hydro One and TELUS and increased our positions in Shaw, Spartan Energy and Raging River Exploration. In U.S. equities, we believe investments in well-financed, stable companies such as Procter & Gamble, Pepsi, Colgate, Johnson & Johnson, Costco and Henry Schein will stand us in good stead when the market environment changes. In European equities, Belgian food retailer Colruyt Group and advertising and communications firm Publicis Groupe contributed positively to performance. In Far East equities, the most significant contributors to performance were Suntory Beverage & Food, Seven & I Holdings and Ansell.
We're confident that our investment strategy – focusing on businesses that we can understand, that have strong competitive advantages we believe are sustainable due to a great corporate culture, and that are not overpriced – remains as relevant today as it has been over our 25-year history.