Industrials
The Canadian Portfolio returned 1.9% with an alpha of (4.1%). The performance was primarily driven by Ritchie Bros. Auctioneers (RBA) as well as Canadian National Railway (CNR) which both posted modest gains throughout the year. With RBA accounting for a considerable amount of the portfolio at 40.6%, its outperformance was able to outweigh the poor performance of CAE and SJ.
As supply chain issues persist, the heavy manufacturing industry has remained attractive and we expect this to continue leaving RBA positioned well as the team enters FY2022. We are currently satisfied with the LMT and UNP holdings as UNP has long been a staple in the portfolio with the ability to deliver consistent returns over the long-term.
The team remains confident in our current holdings and does not intend to make major changes in the coming months.