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Yahoo
30-06-2025
- Business
- Yahoo
Accenture plc (ACN) Declined due to Investors' Concerns Amid Heightened Global Uncertainty
Aristotle Capital Management, LLC, an investment management company, released its 'International Equity Strategy' first quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equity markets started the year on a negative note, with the MSCI ACWI Index down 1.32% in Q1. Meanwhile, the Bloomberg Global Aggregate Bond Index rose 2.64% as global fixed income gained ground. Value stocks outperformed growth stocks, with the MSCI ACWI Value Index surpassing the MSCI ACWI Growth Index by 11.59%. Aristotle Capital International Equity returned 3.62% gross of fees (3.50% net of fees), underperforming the MSCI EAFE Index, which returned 6.86%, and the MSCI ACWI ex USA Index, which returned 5.23%. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Aristotle Capital International Equity Strategy highlighted stocks such as Accenture plc (NYSE:ACN). Accenture plc (NYSE:ACN) is a professional services company that provides management consulting, technology, and outsourcing services. The one-month return of Accenture plc (NYSE:ACN) was -6.05%, and its shares lost 2.34% of their value over the last 52 weeks. On June 27, 2025, Accenture plc (NYSE:ACN) stock closed at $295.46 per share, with a market capitalization of $184.028 billion. Aristotle Capital International Equity Strategy stated the following regarding Accenture plc (NYSE:ACN) in its Q1 2025 investor letter: "Accenture plc (NYSE:ACN), the global IT services and consulting firm, was one of the largest detractors during the period. The company reported revenue at the top end of its guided range, supported by solid booking, particularly in large-scale transformational projects from major corporate clients. Despite these results, shares declined as investor sentiment was impacted by continued client caution amid heightened global uncertainty, including concerns around tariffs and consumer sentiment, as well as the U.S. administration's initiative to streamline federal operations, which could result in canceled or delayed government contracts. We believe Accenture is well-positioned to support the federal government's efficiency goals through its expertise and proven track record in delivering innovative, cost-effective solutions. Accenture has also continued to see traction in emerging areas such as generative AI, securing $1.4 billion in new bookings and generating approximately $600 million in related revenue during the quarter. Short-term fluctuations in consulting demand are not unusual, and we remain confident that Accenture's global scale and deep expertise make it well-positioned to continue to provide solutions and deepen its partnerships with many of the world's largest companies as they continue to implement increasingly sophisticated technologies." A team of data experts gathered around a computer monitor analyzing customer data. Accenture plc (NYSE:ACN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Accenture plc (NYSE:ACN) at the end of the first quarter, which was 79 in the previous quarter. In the first quarter of 2025, Accenture plc (NYSE:ACN) reported a 7% growth in local currency, achieving revenue of $17.7 billion, exceeding the guidance range. While we acknowledge the potential of Accenture plc (NYSE:ACN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Accenture plc (NYSE:ACN) and shared the list of best fundamental stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ACN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-06-2025
- Business
- Yahoo
Posthaste: What does the TSX's record run say about the economy? Maybe not as much as you'd hope
Canada's stock market has been on a tear lately. Since just before the United States election in November, the S&P/TSX composite index has outperformed both the S&P 500 and the EAFE (Europe, Australasia, and the Far East), according to BMO Capital Markets, and hit a record high this month. So is this a good omen for the Canadian economy? BMO senior economist Robert Kavcic looked at the reasons behind the rally in a recent note entitled 'Is the TSX Glitter Economic Gold?' Investors don't like uncertainty and the turmoil thrown up by U.S. President Donald Trump's trade war has been huge. The first thing to remember, though, is markets are always looking at least three to six months ahead. Kavcic said the worst-case scenario for tariffs was arguably priced in months ago and since then Canada's exemptions under the Canada-United-States-Mexico Agreement and a relative pass on Liberation Day has signalled that the tariff bark could be worse than its bite. The direct hit of tariffs on the country has been narrow, he said. Steel and aluminium producers face hefty 50 per cent duties, and some auto parts have been penalized, but these industries represent only about 1 per cent of the TSX index. Before the trade war broke out, the TSX's forward earnings multiple was around 15x, compared with above 22x for the S&P 500, 'a wide gap from a historical perspective,' said Kavcic. Canada's central bank cut earlier and deeper than most other advanced economies, leaving its policy rate at a much more neutral level than the Federal Reserve's. 'The 225 bps of easing in the past year could be taking the brakes off the economy (with a six-to-12-month lag) just when it needs some help, and the TSX could be reflecting that,' he said. Over the past 25 years, the correlation between TSX performance and economic growth has been positive, but not as strong as in the United States, where the S&P 500 proves a better bellwether, said Kavcic. This comes down to composition. The TSX is dominated by financials and energy/materials. While the former picks up on economic conditions, the latter has less sway in the economy than it used to, he said. Case in point are gold stocks which were five of the top 10 contributors to the TSX's increase this year, and account for about a third of the gain year to date. The big guns of the economy, industrials, consumer spending and real estate represent only 12 per cent, 7 per cent and 2 per cent of the index, respectively. 'The TSX is notoriously not a perfect reflection of the underlying Canadian economy given its composition,' said Kavcic. While the resilience of the Canada's equity market in this tumultuous time is impressive, Kavcic said BMO would be cautious in passing that strength into the economic outlook. However, 'if the market is indeed discounting a manageable outcome — we'll take it.' to get Posthaste delivered straight to your appears to be slipping back into Canada's housing market as data Monday showed home sales rose in May from the month before for the first time in more than six months. 'While one good month of home sales doesn't make a trend, there may be signs of cautious optimism for the resale market for those buyers who remain little affected by the ongoing trade war,' said Kari Norman, an economist with Desjardins Group. 'The combination of lower prices, more inventory and less economic uncertainty may continue to entice more homebuyers back into the market this summer.' New listings increased by over 3 per cent, but the number of months of inventory edged back for the first time in six months from 5.0 in April to 4.9 in May. G7 summit in Kananaskis, Alta. continues Today's Data: Canada international securities transactions, United States retail sales, industrial production and NAHB Housing Market Index Trump said he still favours tariffs against Canada as negotiators sit down at G7 The bond market's long slump: What it means for investors Canada's home sales rise for the first time in more than six months The U.S. bond market is in uncharted territory. The drawdown over 58 consecutive months is by far the longest such stretch in recorded history during which the market has endured a peak-to-trough decline of -17.2 per cent, a staggering figure for an asset class traditionally viewed as a safe haven, writes investing pro Martin Pelletier. It's a stark reminder for investors that even the most stable-seeming assets are not immune to structural shifts. The message is clear: The old rules may no longer apply, and adaptation is not optional, it's essential. Read on for strategies Last week, we published a feature on the death of the summer job as student unemployment reaches crisis levels. We want to hear directly from Canadians aged 15-24 about their summer job search. Send us your story, in 50-100 words, and we'll publish the best submissions in an upcoming edition of the Financial Post. You can submit your story by email to fp_economy@ under the subject heading 'Summer job stories.' Please include your name, your age, the city and province where you reside, and a phone number to reach you. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Canadians looking for more interest rate relief might be out of luck Toronto condo sales drop 75%, leaving investors bleeding cash, CMHC says Sign in to access your portfolio
CNBC
02-06-2025
- Business
- CNBC
The market's biggest trades sending skeptical message on U.S. stocks
This year has already packed a lot of action into stocks: an aggressively bullish start, a swift correction, and a full recovery from those April losses. But based on the the flows into the U.S. exchange-traded funds, where much of the daily trading action occurs across asset classes, the message coming through most clearly from investors is lingering skepticism about the strength of the U.S. equities market. May was a great month for stocks, with the S&P 500 Index up over 6%, the Nasdaq Composite up over 9%, and the Dow Jones Industrial Average up roughly 4%. But making up for April's losses hasn't removed the underlying fears from the market, with stocks sliding to start the month of June on Monday as trade uncertainty, from the state of U.S.-China deal talks to the Trump administration's battle with courts over the legality of tariffs, continue to serve as hurdles for sustained momentum. At the start of 2025, equity ETFs were trading roughly $3 billion in daily inflows, an "extreme" level of bullishness, according to recent report from Strategas Securities. Since the market recovered all of its April losses, those daily inflows have fallen by more than half, to roughly $1.4 billion, despite the rally. Where has the money been going? "Mostly, just hiding out in ultra-short duration," said Todd Sohn, senior ETF and technical strategist at Strategas, on a recent "ETF Edge" podcast. The iShares 0-3 Month Treasury Bond ETF (SGOV) and SPDR Bloomberg 1-3 T-Bill ETF (BIL) are both among the top 10 ETFs in investor flows this year, taking in over $25 billion in assets. "Skepticism, that's what the equity flows are telling us," said Sohn of the action since the market low in April. He added this suggests a year that could follow a pattern from bull market history, what he called a "reset year." Going back to 1950, years one and two of a bull market generate linear returns that take all equities higher, while third years are more often reset years that tend to reflect a cautious stance on stocks. Or, as Sohn put it: "How much of a good thing can last is a fair question." Since getting back to even, the U.S. market's 0.6% performance year-to-date through the end of May places it at the bottom of the list for 2025 relative to the performance of regional markets around the world, though it is by no means the worst country market in the world. But at least to date, the ETF flows do suggest a "year three" of a bull market cycle, which tends to more often be a trader year than investor year, with a wide dispersion in returns across equity sectors, according to Sohn. Coming off back-to-back years with 20 percent-plus returns for U.S. stocks, the top ETF categories in flows since the April 8 low are crypto, short duration bond, T-bill ETFs, and value (including overseas value stocks such as EAFE ETFs). Meanwhile, tech ETFs, single-stock levered ETFs, and cyclical and small-cap stock ETFs that are most closely linked to aggressive stock bets and conviction about the overall health of domestic economy are near the bottom of the list, with negative flows since the April low. "Folks want to hang out on the short-end of the [bond yield] curve and are very skeptical on what to do about U.S. equities," said Sohn. "It's almost like they are throwing in the towel on cyclicals and small-caps," he added. Part of the reason for the lack of interest in cyclicals is related to the yields currently on offer in the bond market, which can make cyclical plays with healthy dividend levels, such as consumer staples, financials, industrials, and materials, less attractive to investors who might otherwise assume the stock market risk for the income component. "That has disappeared with the return of bond yields," said Sohn. "There's not really any reason to hold," he added, as all the income flows that in the past may have gone into income-producing equities go to short duration bond ETFs instead. One place where investors should keep the faith with U.S. corporations is with their ability to fund bond payments, Joanna Gallegos, BondBloxx ETFs co-founder, said on "ETF Edge." After the strong years of 2023 and 2024, corporate credit sheets are "set up to weather the storm," Gallegos said, and she added that it is possible to stay shorter in corporate credit without exposing oneself to a high level of interest rate risk. After short duration bonds and T-bills, intermediate duration bonds have seen the most daily ETF flows since the April low among fixed-income categories, and are fifth overall in flows among stock and bond ETF asset classes, according to Strategas. Unlike equities, most fixed income categories have had positive returns year to date, even with yields near their highest levels in years, according to BondBloxx data. "Income is back. In fixed income, that's what is important right now," she said. "Any investor trying to offset volatility in their equity portfolio, if they haven't looked at how income is serving their portfolio, that's what they should do," Gallegos said. While Gallegos recommends investors consider investment grade credits in the BBB class, where yields are near 5%, and the first rung of the high-yield universe, BB, where yields are roughly 6%, short-duration yields are the most popular right now for a good reason. "It is hard to argue with 4-4.25% with no volatility," Sohn said. Disclaimer
Globe and Mail
22-05-2025
- Business
- Globe and Mail
Setup in place for international equity outperformance
On a handful of occasions over the past 15 years, investors became excited about international equities, emboldened by brief spates of outperformance against the mighty S&P 500. And in all those cases, it faded quickly as S&P 'exceptionalism' reclaimed its spot at the top of the performance tables. This wasn't always the case, as there have also been extended periods when EAFE or international equities outperformed the U.S. Now, with EAFE up about 13% so far in 2025 and the S&P 500 down over 3%, folks are talking international once again. Will this be yet another false signal, or is this cyclical dance finally changing tunes? Comparing the U.S. equity market with EAFE is not as different as apples to oranges, but certainly to different kinds of apples. The U.S. market is skewed to more technology and many globally operating companies. Japan, too, has a lot of technology, but certainly more consumer discretionary and fewer financials. Europe has more financials, less technology. This does help provide some diversification, from different mixes and exposures. So could we be entering a long period of international outperformance versus the U.S.? The setup is in place, but it has been in place for many years. Valuations naturally favour international, but that is usually the case given the sector differences and the valuations of those relative sectors. That being said, the valuation spread was very extreme at the end of 2024 – a bit less so today. And it is not earnings growth, as estimates for 2025 have come down more outside the U.S. We have a hard time believing investors are banking on 2026 estimates at this point with so much uncertainty. Probably more important than the above fundamentals is the starting points and relative changes. The U.S. dominated the 2010s thanks largely to technology megacaps. This received a boost following Covid, as U.S. policy was much more stimulative, both monetarily and fiscally. This helped the U.S. economy grow faster than most others, which were more restrained in their stimulus and spending. This may be changing. The U.S. is beginning efforts to grapple with its deficit. Meanwhile, more and more international countries are starting to increase spending or spending plans. Add to this that the market has such high expectations for the U.S. economy and market, while much lower expectations for many international economies and markets. The bar is set pretty low in many places. Most would agree that the European consumer is in very good shape. Japan is finally making progress on reforms to encourage more investor-friendly company behaviours. Add some negative sentiment around U.S. policy. If the cycle has changed to favour international, the challenge for many portfolios will be a preponderance of U.S. equity overweights and subsequent international underweights. This isn't just at the client portfolio level. A common theme in multi-asset portfolios today is to rely on global equity managers for international exposure, but these days, 'global' is often just shorthand for 'mostly U.S.' You actually have to go back a decade to find a time when non-U.S. equity made up the larger share of global equity products. Since then, the shift toward U.S. exposure has been steady and significant. Today, the median global equity manager in North America has roughly 60% of their portfolio in U.S. equities. One could argue that due to the U.S. massively outperforming international markets over the past 15 years, the U.S. weight would naturally increase even if trimmed a bit along the way. The chart below shows the original region weight and applied market growth, which looks pretty similar to the changing global manager weights above. In fact, all these charts look similar to the global market cap charts over time. But now we have to ask: Is this the right portfolio positioning for what lies ahead? Just because global market caps favour the U.S. more these days doesn't mean they're right. In fact, focusing too much on global market caps is literally backward-looking. There's now more than $1.1 trillion invested in global equity mutual funds across North America. That's a massive pool of mostly active capital tilted toward a region that has already had a historic run. And while the past decade rewarded U.S.-heavy allocations, the next one may not. Valuations are elevated. Market leadership is narrow. And global monetary and economic conditions are diverging in ways we haven't seen in a very long time. Final thoughts Today, we are larger fans of international markets compared with U.S. equities. Valuations help a little, but more from a risk/reward perspective. The U.S. equity market is awesome, and it could outperform in the years to come. But after this relative run, plus the fact that it is possibly over-owned by investors, it would take even more exceptionalism to continue the dominance. Japan and Europe are like fixer-uppers. Even minor improvements go a long way after underperforming for so long. And they're starting to make improvements, while one could argue the U.S. is doing the opposite. Craig Basinger is the Chief Market Strategist at Purpose Investments Inc. and portfolio manager of several Purpose funds, including Purpose Tactical Thematic Fund. Brett Gustafson, Associate Portfolio Manager at Purpose Investments, contributed to this article. Notes and disclaimer Content copyright © 2025 by Purpose Investments Inc. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited. This article first appeared on the ' Market Ethos ' page of the Purpose Investments' website. Used with permission. Charts are sourced from Bloomberg unless otherwise noted. The content of this document is for informational purposes only, and is not being provided in the context of an offering of any securities described herein, nor is it a recommendation or solicitation to buy, hold or sell any security. The information is not investment advice, nor is it tailored to the needs or circumstances of any investor. Information contained in this document is not, and under no circumstances is it to be construed as an offering memorandum, prospectus, advertisement or public offering of securities. No securities commission or similar regulatory authority has reviewed this document and any representation to the contrary is an offence. Information contained in this document is believed to be accurate and reliable, however, we cannot guarantee that it is complete or current at all times. The information provided is subject to change without notice. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. Certain statements in this document are forward-looking. Forward-looking statements ('FLS') are statements that are predictive in nature, depend on or refer to future events or conditions, or that include words such as 'may,' 'will,' 'should,' 'could,' 'expect,' 'anticipate,' intend,' 'plan,' 'believe,' 'estimate' or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained in this document are based upon what Purpose Investments and the portfolio manager believe to be reasonable assumptions, Purpose Investments and the portfolio manager cannot assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on the FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.
Yahoo
30-04-2025
- Business
- Yahoo
RBC Investor Services' Canadian DB pension plans generate modest returns while facing heightened market volatility in Q1 2025
TORONTO, April 30, 2025 /CNW/ - Despite market volatility fueled by geopolitical tensions, shifting trade policies and political changes both globally and domestically, defined benefit (DB) pension plans managed by RBC Investor Services clients posted a modest gain of 1.1% in the first quarter of 2025. The results are based on a recent analysis encompassing various client plans across private and public sectors. Canadian equities returned 1.2% for pension plans, slightly underperforming the TSX Composite Index, which rose 1.5%. The materials sector was the main contributor to positive performance, surging 20.3% on the strength of gold stocks. However, the information technology sector declined 7.5%, reflecting broader challenges within the tech industry. Foreign equities held by pension plans fell 0.1%, while the MSCI World Index declined 1.7%. Within the benchmark, there was a sharp contrast between the performance of value and growth stocks: the MSCI World Value Index rose 4.9%, while the MSCI World Growth Index fell 7.7%. Meanwhile, U.S. equities, as represented by the S&P 500, declined 4.2%, underperforming the MSCI EAFE Index, which gained 6.9%. The EAFE's outperformance was driven by strong results in European markets, particularly Germany, which is expected to benefit from fiscal stimulus, and by the euro's appreciation against the Canadian dollar. Emerging markets also advanced, with the MSCI Emerging Markets Index rising 3.0%. In fixed income markets, pension plans gained 1.8%, compared to a 2.0% increase in the FTSE Canada Universe Bond Index. Mid-term bonds led the way, climbing 2.7%, reflecting investors' preference for safer assets amid ongoing uncertainty surrounding central bank policies and political transitions. "The first quarter reminded us that sector positioning, currency exposure and geopolitical awareness are key to pension performance," said Isabelle Tremblay, Asset Owner Segment Lead at RBC Investor Services. "The appreciation of the euro versus the Canadian dollar amplified foreign equity gains, while political developments, including leadership changes both domestically and abroad, sparked investor recalibration. Pension plans that remained diversified and nimble were better positioned to navigate these challenges." About RBCRoyal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 98,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at About RBC Investor ServicesRBC Investor Services delivers investment servicing solutions to Canadian asset managers and asset owners, insurance providers, investment counsellors and global financial institutions. With more than 1,500 employees and offices across the globe, our focus is on safeguarding the assets of our clients and enabling their growth. Part of Royal Bank of Canada, Canada's largest bank, RBC Investor Services has over C$2.6 trillion of assets under administration. Learn more at For more information, please contact: Ylana Kurtz, RBC SOURCE RBC Investor Services View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
