Why this $25-billion money manager added Couche-Tard and sold Telus
RBC Global Asset Management's Scott Lysakowski, overseeing $25.6B, remains optimistic about Canadian equities. His PH&N Dividend Income Fund, with 17.6% YTD returns, added Alimentation Couche-Tard (ATD.TO) and Cenovus Energy (CVE.TO), citing growth prospects, and sold Telus (T.TO) due to free cash flow pressures.
How this was made
The 30-second read
Why it matters
The commentary provides insight into institutional positioning but does not disclose any new corporate actions or earnings data.
Market read
The article offers a snapshot of fund flows into select Canadian stocks, useful for gauging institutional sentiment but low on actionable trading triggers.
What to watch
Potential regulatory changes in Canadian telecom and fuel markets could alter the outlook for both Telus and Couche‑Tard.
Background
A senior portfolio manager at RBC Global Asset Management discussed recent buying and selling decisions within its $25.6 billion Canadian equity fund.
Ticker impact
Fund added Cenovus Energy after its acquisition of MEG Energy, noting production boost and cash‑flow generation.
Limited upside unless market rewards higher oil prices.
Acquisition already completed; fund commentary adds no new material information.
Fund started buying TFI International after a 50% jump in operating income and higher freight rates.
Potential modest rally if earnings trend continues.
Quarterly results already public; fund’s purchase is secondary commentary.
Market effects
Highlights continued interest in Canadian energy, materials and financials among institutional investors.
May influence Canadian equity sentiment, especially for consumer‑discretionary and energy stocks.
Limited; primarily relevant to investors focused on Canadian markets.
Counterpoint
Fund’s sell of Telus could be premature if dividend cut is temporary and new CEO stabilizes the business.
Key entities
- Asset ManagerRBC Global Asset Management
Manages the PH&N Dividend Income Fund.
- Portfolio ManagerScott Lysakowski
Senior portfolio manager overseeing the fund.
