I am an accredited or eligible investor as defined in National Instrument 45-106.




Liis Palmer, Cassels Investment Management Inc.

Last week the Marquest Monthly Pay Fund (A units) closed at $5.38, up from $5.30 the previous week. The TSX was up 1.6 percent in the same period. Global stocks traded at record levels supported by the ECB’s announcement of measures to counter the risk of deflation and a “goldilocks” US employment report. US non-farm payrolls rose 217,000 in May and the unemployment rate remained steady at 6.3 percent. At the same time, there appears to be no evidence of wage inflation; wages are up only 2.1 percent year over year which has been the average for several years. This makes it likely that Federal Reserve will be able to keep a fairly accommodating stance.

Leading contributors in the portfolio were AutoCanada (up 11.8 percent), TD Bank (up 2.1 percent) and Arc Resources (up 4.6 percent). We wrote about AutoCanada last week and believe that the company has a good story that is beginning to get noticed.

Laggards in the portfolio were Canexus (down 3.9 percent), West Fraser Timber (down 3.9 percent) and Norbord (down 4.6 percent). Lumber prices were down again, hurting forest products stocks such as West Fraser and Norbord. March exports were held back by the port strike in Vancouver. North American lumber shipments decreased 1.9 percent year over year. Canadian shipments were down 4.8 percent year over year.

The information above is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this paper are derived from proprietary and non-proprietary sources deemed by the author to be reliable. The information is not necessarily all-inclusive and is not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any way for errors and omissions is accepted by Marquest, its officers, employees or agents. This paper may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. We caution you not to place undue reliance on these statements as a number of important factors could cause actual events or results to differ materially from those expressed or implied in any forward-looking statement contained herein. All forward-looking statements are subject to change and are provided in good faith but without legal responsibility. © 2014 Marquest Asset Management Inc. All rights reserved.

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