Global Equity Fund

September 30, 2022

Market Context

  • Global stocks, as measured by the Morningstar Developed Markets Index, were flat in the quarter (0.0%) in Canadian dollar terms.
  • The Canadian dollar depreciated against the U.S. dollar (-6%), was up a little on the British Pound (+2%) and was largely unchanged against the Euro and Japanese Yen. All said, currency movements had a modestly positive impact on performance.

Portfolio Specifics

  • The fund owns 49 stocks, of which 19 are domiciled in the U.S., 11 in Europe, 9 in Japan, 4 in the U.K., 3 in Asia Pacific, and 3 in Canada. Companies range in size from mega-cap Microsoft to small-cap FirstCash Holdings.
  • Performance was flat in the third quarter. Our U.S. investments fared better than our overseas holdings, on balance, with a strong dollar being a contributing factor.
  • Cameco and Pan Pacific International were standouts in the quarter. Canadian uranium producer Cameco saw a recovery in its stock price (+35%) as the world is starting to adopt a more accepting view of nuclear power. Tokyo-based retailer Pan Pacific (+20%) is poised to benefit from a return of tourism to Japan following two long years of travel restrictions, and investors are embracing its potential.
  • Adobe, Rational, and AIA Group were key detractors to performance. Adobe’s purchase of interface design firm Figma was not well received by investors; Rational was hampered by parts shortages for its commercial ovens; and insurer AIA was dragged down by ongoing geopolitical turmoil in Hong Kong and China.
  • Many European companies turned in solid operating results, yet soaring inflation and the war in Ukraine weighed on investor sentiment. Our manager, Aristotle Capital, is encouraged by the resilient earnings of holdings such as Michelin (the tire company is delivering robust profits), LVMH (the luxury goods retailer continues to see strong demand), and Symrise (the producer of flavours and fragrances has achieved excellent sales growth this year). While their stock prices have disappointed, Aristotle believes these companies have good upside.
  • Qualcomm, Dolby Laboratories, and Microsoft are examples of technology holdings whose fundamentals and market position remain strong and growing, yet their stock prices have languished. Likewise, our investments in the consumer staples space—Coca-Cola, Procter & Gamble, and Heineken—are down on the year despite showing good pricing power and steady revenue growth.
  • The only new name, Haleon (consumer health products), was a spin-off from GSK.


  • Our manager looks for quality businesses with competitive advantages, pricing power, and proven executives. Investments are spread across industries, both fast-growing and steady-eddy, in companies that have a strong market position.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Important information about the Steadyhand funds is contained in our Simplified Prospectus. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.