Fund Objective

There is no fund objective available from this fund manager.

View on Past Performance

In a volatile quarter, the fund delivered a positive return. August was the only month to produce negative returns as our Canadian-listed smaller companies suffered due to risk aversion and the close correlation of Canadian stocks with the US. Our long term strategy of strong exposure to small cap stocks has not changed, as we continue to find projectspecific leverage in this market.The gold price passed through the significant USD 700/oz level in September as investors flocked to the safe haven, but also as a reflection of the supply and demand imbalance. We have steadily increased our gold exposure over the quarter. September also saw the oil price reach USD 83/barrel due to falling inventories, storm warnings and the declining dollar. Gold and oil & gas stocks added the greatest value to the portfolio, along with copper and iron ore.

Future Expectations

The summer's volatility has not changed our positive outlook for the sector. We have increased our coal and iron ore exposure as we expect further upside as we move into the annual negotiating season and due to ongoing supply constraints. We have an increasingly positive view on aluminium due to the potential reduction in Chinese exports caused by local power constraints on production capacity.Aluminium continues to trade close to margin costs, and we have increased our weight in the metal with a two-to-three year view. There are good investment opportunities within the exploration side of the energy sector and we are also finding new opportunities driven by the concern to meet our energy needs.

Fund Details