Consumers

Over the past year, the QUIC Canadian Consumer portfolio returned 35.7%, outperforming its benchmark return by 10.1%. This outperformance was driven primarily by conviction in structurally advantaged retailers, like Aritzia. The U.S. QUIC Consumers portfolio returned (5.1%), generating (0.3%) alpha relative to the benchmark. The portfolio was led by opportunistic investments in Chipotle and Starbucks.

Looking ahead, consumer sentiment in Canada remains cautious, with households reporting weaker spending intentions and elevated concerns about their financial health. Near-term inflation expectations remain above pre-pandemic levels, even though long-term expectations have eased, suggesting consumers expect price pressures to linger for some time and could further constrain real spending growth. Trade tensions are likely to continue to drive uncertainty and pressure margins as companies are hesitant to raise prices in an environment that is seeing consumers increasingly trade down.