Technology, Media & Telecom

Over the course of the year, the QUIC Tech, Media, and Telecommunications (TMT) Canadian portfolio returned 19.0%, outperforming the benchmark by 11.6% and generating alpha of 7.1%. For several years, TMT’s investment strategy in Canada was to remain overweight in telecommunications, a relatively stable industry with unmatched entry barriers and strong dividend yields. However, the team regularly searches for higher alpha opportunities within technology companies that exhibit high degrees of customer captivity

While the TMT team acknowledges that the Canadian telecommunications sector will remain steady due to tight government regulations that create a strong entry barrier and the increasing reliance on wireless devices, the TMT team is more optimistic about the growth and return prospects from the technology space. The media industry, which is largely controlled in Canada by the telecommunications players, will continue to see increased pressure from disruptive players as the incumbents continue to struggle to adapt.