Ivy Quarterly Review | Mackenzie Investments

Ivy Quarterly Review

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.

Ivy Quarterly map

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.

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This document includes forward-looking information that is based on forecasts of future events as of September 30, 2017. Mackenzie Financial Corporation will not necessarily update the information to reflect changes after that date. Forward-looking statements are not guarantees of future performance and risks and uncertainties often cause actual results to differ materially from forward-looking information or expectations. Some of these risks are changes to or volatility in the economy, politics, securities markets, interest rates, currency exchange rates, business competition, capital markets, technology, laws, or when catastrophic events occur. Do not place undue reliance on forward-looking information.  In addition, any statement about companies is not an endorsement or recommendation to buy or sell any security.