Market week: Stock indexes close at record highs

07-09-2021
Market week: Stock indexes close at record highs

Sentiment rises ahead of expected epic Q2 earnings season

 

Market forces waged a tug of war between what’s expected to be an epic earnings season for the second quarter and renewed fears about the sustainability of global growth owing to the resurgence of the so-called delta variant coronavirus in some parts of the world. With restrictions being reimposed in Asia and Europe, investor sentiment cooled in Thursday’s session, only to revive again on Friday with strong rallies across the board. So much so that the both the S&P 500 Composite Index and the Nasdaq Composite Index closed with marginal 0.4% gains on the week, as both benchmarks closed Friday at all-time record highs. Toronto’s S&P/TSX Composite Index advanced 0.2% on the week, as gold gained 1.2% on the week, while crude oil retreated 0.7%.

Fund news

* Venator launches liquid alternative fund. Venator Capital Management Ltd. on July 8 debuted its Venator Founders Alternative Fund, available to accredited investors. The fund mirrors the 15-year-old Venator Founders Fund, which is available to accredited investors.

The new fund is actively managed by Brandon Osten and Stephen Andersons and has a North American equity long/short mandate focusing on business fundamentals with a bottom-up strategy. The portfolio often holds several under-followed businesses from across North America.

* Picton Mahoney re-opens two funds. Picton Mahoney Asset Management announced that as of July 6, it has re-opened its Picton Mahoney Arbitrage Plus Fund and Picton Mahoney Fortified Arbitrage Plus Alternative Fund to new investors.

* CIBC launches new RI fund series. CIBC Asset Management Inc. announced on July 5 the launch of its CIBC Sustainable Investment Solutions funds. The new series of funds provides actively managed strategies designed for socially-responsible investors. The fulnds aim for a lower carbon footprint and energy sector exposure than broad market indexes, and seek companies in the renewable energy sector as well as green bonds.

* Arrow merges two funds. Arrow Capital Management announced on June 28 that following unitholder approval, it has merged Exemplar Investment Grade Fund (including the ETF Series) into the Arrow EC Income Advantage Alternative Fund. The merger was completed on June 25.

* AGF launches private credit solutions. AGF Investments Inc. on July 7 debuted two new private credit investment solutions in partnership with SAF Group.

  • AGF SAF Private Credit Limited Partnership, available to accredited investors, invests in a portfolio of private and public income-generating credit securities. The Limited Partnership will allocate capital through various credit strategies to a range of middle and lower-middle market companies, primarily within Canada and the United States, to construct a portfolio of private and public income-generating private debt instruments.
  • AGF SAF Private Credit Trust, available to retail accredited investors and eligible investors, provides access to AGF SAF Private Credit Limited Partnership. The trust provides investors with access to the benefits of private credit investing including the potential for enhanced returns and regular distributions alongside investments that include a combination of ETFs and mutual funds (including AGF Funds) with varying income characteristics selected to enhance liquidity.

“Private credit is one of the fastest growing categories of alternative investments and demand continues to grow as investors seek reliable streams of income, diversification and attractive returns,” said Judy Goldring, President and Head of Global Distribution, AGF Management Limited. Founded in 2014, SAF Group (SAF) is one of Canada’s leading alternative capital providers specializing in bespoke financial products.

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