Portfolio Highlights

Microsoft (MSFT.TO) surged 24.20% after a blowout fiscal Q4. Revenue of $90.0 billion (up ~18%) and non-GAAP EPS of $4.74 both cleared estimates, driven by the Intelligent Cloud segment as Azure grew 43% and crossed $100 billion in annual revenue for the first time. The result reasserted Microsoft’s cloud leadership and eased fears that AI infrastructure costs would erode margins—though it’s worth noting the beat was aided by a $3.2 billion gain on its Anthropic stake.

Canadian Natural Resources (CNQ.TO) advanced 19.00%, buoyed by firmer crude prices amid Middle East supply risks and improving sentiment across Canadian energy. The stock drew multiple analyst upgrades, including Zacks lifting it to Strong Buy, while constructive pipeline developments—British Columbia softening its opposition to new pipelines and an Alberta-Ontario proposal for a transcontinental line—added tailwinds. The move reinforced CNQ’s standing as a low-cost, capital-disciplined free-cash-flow generator.

TELUS (T.TO) declined 10.80% after a weak Q2 that paired an earnings and revenue miss with a sweeping strategic reset. A C$2.1 billion non-cash impairment at TELUS Digital drove a C$1.8 billion net loss, and the company cut its dividend by 55% while lowering full-year revenue and EBITDA guidance, redirecting capital toward deleveraging. The reset triggered downgrades from Morgan Stanley, CIBC, and Barclays, underscoring the structural and competitive pressures—including Starlink—facing Canadian telecom.

CRH (CRH) fell 8.31% despite a Q2 earnings beat. EPS of $2.21 topped the $2.02 consensus, but full-year 2026 EPS guidance of $5.60–$6.05 landed with a midpoint below the ~$5.95 consensus, and subdued residential construction activity amid high mortgage rates remained a headwind. The pullback reflects investor caution on near-term demand even as infrastructure spending and pricing stay supportive.

All data sourced from FACTSET and Bloomberg L.P.
All data is for the reported month and in local currency.

Macro Watch

In July 2026, the International Monetary Fund released its updated World Economic Outlook, projecting global growth to hold at 3.0% for the year while confirming that global disinflation has essentially stalled. The macroeconomic landscape is becoming increasingly fractured, creating a sharp divide between nations integrated into the booming technology supply chain and those vulnerable to commodity shocks. Policymakers are now navigating an environment where AI-driven demand lifts certain economies, even as prolonged geopolitical conflicts weigh heavily on energy importers.

Energy supply chains remained a volatile focal point throughout the month, significantly altering global inflation trajectories. While a mid-June memorandum of understanding between the U.S. and Iran briefly allowed for the reopening of the Strait of Hormuz, renewed hostilities in July disrupted the gradual recovery of global oil markets. This instability generated a severe supply shock for oil, gas, and fertilizers, ultimately forcing upward revisions in core inflation forecasts and keeping financial markets on high alert.

Despite elevated borrowing costs and global commodity disruptions, the U.S. economy continues to display remarkable resilience compared to its European counterparts. Domestic growth remains steady, heavily supported by massive capital expenditures in artificial intelligence that provide a strong structural floor for business activity. Furthermore, because the U.S. operates as a net energy exporter, its robust consumer sentiment has been largely shielded from the energy price spikes currently suppressing growth in the U.K. and the Eurozone.

All data sourced from FACTSET and SIACharts.
All data is for the reported month and in local currency.

Portfolio Returns

July 2026