Industrials

The QUIC Industrials (IND) Canadian portfolio returned 18.7% with an alpha of 12.9%. The outperformance is largely driven by Badger Infrastructure Solutions (BDGI) against a favourable backdrop of strong infrastructure spending across key end markets, including data centers, power generation, and urban development. Strong performance across the board was able to comfortably reverse the overhang from ATS Corporation (ATS).

Amid global political vicissitudes, the Canadian and US defence sectors draw cautious excitement. Most notably, Canada's homegrown agenda can potentially revitalise domestic defence players that we have historically overlooked. While we remain optimistic in our exposure to infrastructure services, JCI's impressive performance in cooling technologies drives interest in the data center industry amid fierce AI-driven compute demands.