By Scott Ronalds
The manager of our Equity Fund, CGOV, recently published a short piece that addresses a timely topic – inflation. With commodity prices rising across the board, investors may be curious as to how certain companies are affected by this trend.
CGOV references five portfolio holdings to illustrate how some companies will benefit from rising prices while others will feel the pinch.
The manager’s key takeaway is that the Equity Fund is well positioned to withstand an environment of rising commodity prices, as roughly 25% of the portfolio is invested in commodity producers (e.g. Suncor, Potash Corp and Crescent Point) and several companies have sufficient pricing power that enables them to pass through rising input costs to their customers (e.g. Unilever and Nalco).
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