WILLOUGHBY INVESTMENT POOL

Transcription

1 WILLOUGHBY INVESTMENT POOL COMMENTARY ALLOCATION BY ASSET CLASS PERFORMANCE HISTORY PORTFOLIO HOLDINGS TRADING ACTIVITY TOTAL PORTFOLIO SOLUTIONS

2 COMMENTARY The hot tech sector has taken a breather and retracted as of late, investors continue to lack confidence in the energy sector despite tremendous value in the underlying securities, and the recent rise in the Canadian dollar has offset some of the gains of the portfolio s US holdings for the time being. Open Text and Seagate Technology have both reversed their trend as shown by the drop below their respective 200 day moving averages and have been identified as sale candidates as per the strategy rules. The portfolio trimmed about half of the resource holdings a little while back and given the sector s continued negative sentiment, the balance of the allocation will be liquidated. That said, we believe in the sector long term, and will add back once the downward trend reverses. Proceeds from some of these sales will be used to increase global exposure both through Europe and the Emerging Markets. As the US economy is stronger than that of other nations, US stock valuations are on the healthy side while valuations abroad are more favourable. The North American environment favours selective stock picking and in Canada, WIP is monitoring Boyd Income Group for purchase. It has been one of the top performers over the past 3 and 6 months and one of Canada s top stocks over the past 5 years. While its PE ratio (Price to Earnings) is relatively high, it has been coming down recently as earnings continue to expand. Forward PE is also expected to decline further to Earnings Per Share are expected to grow considerably to from 1.94 by On the US side, UnitedHealth Group has been indentified as a purchase candidate. UNH has also had strong performance recently and has been one of the strongest US stocks over the past several years. Earnings are expected to grow from 7.81 to by 2019 while PE is expected to decline to Price-Sales ratio is a respectable.95. It should be noted that a stronger Canadian dollar helps on the purchase side of the trade.

3 ALLOCATION BY ASSET CLASS Row Labels Sum of Market Value 1. CASH & CASH EQUIVALENTS BONDS FIXED INCOME INSTRUMENTS CANADIAN EQUITY AMERICAN EQUITY GLOBAL HOLDINGS Grand Total CASH & CASH EQUIVALENTS 2. BONDS 3. FIXED INCOME INSTRUMENTS 4. CANADIAN EQUITY 5. AMERICAN EQUITY 6. GLOBAL HOLDINGS PERFORMANCE HISTORY 11,500 11,000 10,500 WIP 10,000 9,500

4 PORTFOLIO HOLDINGS COST MARKET WEIGHTING UNREALIZED GAIN & LOSS 1. CASH & CASH EQUIVALENTS 2.25% 2. BONDS 7.27% 1.52% ALBERTA MTN 2.9% 20SP % 1.82% ATRIUM CV RED 5.25% 30JN % 1.25% ATRIUM CV RED 5.5% 30SP % 0.67% BELL CDA CB % 12AG % -0.22% BRKFLD REN CB 3.63% 15JA % 2.35% BROOKFIELD C26 3.8% 16MR % 3.45% CDA-REAL RET 4.25% 1DC % -5.55% ENBRIDGE CB % 8JN % -2.25% EXCH INCM CV 5.25% 30JN % 2.42% EXCH INCM CV 5.5% 30SP % 1.23% HUSKY ENGY RED 3.6% 10MR % -2.43% MANITOBA 2.85% 5SP % 6.76% PROV NFLD 2.3% 2JN % -1.09% PROV NFLD 3.3% 17OC % 4.61% SOBEYS CB % 8AG % 2.53% TELUS CORP MTN 4.4% 1AP % 2.01% TORONTO 2.4% 7JN % -2.15% TRANSALTA 5% 25NV % 5.88% 3. FIXED INCOME INSTRUMENTS 12.35% -1.49% 1832 ASSET MANAGEMENT AURION T/R BND % -2.10% ISHARES CDN CORP BOND ETF % -1.32% ISHRS 1-10Y LADD GOVT BND % -3.20% NORTHWEST HLTHCR REIT T/U % -0.84% PURE INDUSTRIAL RET T/U % 20.00% SLATE OFFICE REIT T/U % -2.15% WESTON GEORGE 4.75% V PFD % -0.96%

5 PORTFOLIO HOLDINGS COST MARKET WEIGHTING UNREALIZED GAIN & LOSS 4. CANADIAN EQUITY 30.10% 4.67% CANADIAN PACIFIC RAIL % 2.65% CANOE CANADIAN ENERGY % % CCL INDS INC-CL-B NV % 34.14% CELESTICA INC SV % 5.89% DOLLARAMA INC % 24.61% LASSONDE INDS INC-A SV % 23.44% MAGNA INTL INC % 8.18% MANULIFE FINANCIAL CORP % 0.68% NEW FLYER INDUS INC % -1.84% OPEN TEXT CORPORATION % -0.41% SIERRA WIRELESS INC % -5.80% SPROTT RESOURCES % -5.89% 5. AMERICAN EQUITY 33.95% 9.34% APPLIED MATERIALS INC % 39.93% BANK OF AMERICA % 3.12% BRANDES US S/C EQ % 0.32% COPART INC % 13.11% FACEBOOK INC CL-A % 16.17% GOLDMAN SACHS GROUP INC % -6.26% MICRON TECHNOLOGY INC % 47.67% MKS INSTRUMENT INC % % PACKAGING CORP AMERICA % 27.61% SEAGATE TECHNOLOGY PLC % -5.46% SOUTHWEST AIRLINES CO % 14.56% TD SCIENCE & TECHNOLOGY % 12.31%

6 PORTFOLIO HOLDINGS COST MARKET WEIGHTING UNREALIZED GAIN & LOSS 6. GLOBAL HOLDINGS 14.08% 4.54% 1832 ASSET MANAGEMENT EURO VAL % -4.41% FIDELITY GLOBAL TECH CLASS P % 17.79% FIDELITY GLOBAL TECH P % 3.43% SENTRY S/M CAP INCOME % 7.32% TD EMERGING MARKET % -4.51%

7 TRADING ACTIVITY PURCHASES AVERAGE PURCHASE PRICE 1832 ASSET MANAGEMENT EURO VAL CAD 1832 ASSET MANAGEMENT T/R BND 9.33 CAD APPLIED MATERIALS INC USD ATRIUM CV RED 5.25% 30JN CAD ATRIUM CV RED 5.5% 30SP CAD BANK OF AMERICA USD BRANDES US S/C EQ CAD CANADIAN PACIFIC RAIL CAD CANOE CANADIAN ENERGY CAD CCL INDS INC-CL-B NV CAD CELESTICA INC SV CAD CLIFFS NATURAL RES INC 6.75 USD COPART INC USD DOLLARAMA INC CAD ENBRIDGE CB % 8JN CAD ENCANA CORP CAD EXCH INCM CV 5.25% 30JN CAD FACEBOOK INC CL-A USD GOLDMAN SACHS GROUP INC USD HUSKY ENGY RED 3.6% 10MR CAD ISHRS 1-10Y LADD GOVT BND CAD MAGNA INTL INC CAD MANULIFE FINANCIAL CORP CAD MICRON TECHNOLOGY INC USD MKS INSTRUMENT INC USD NEW FLYER INDUS INC CAD OPEN TEXT CORPORATION CAD PACKAGING CORP AMERICA USD SEAGATE TECHNOLOGY PLC USD SENTRY S/M CAP INCOME CAD

8 TRADING ACTIVITY PURCHASES (CONTINUED) SIERRA WIRELESS INC SOUTHWEST AIRLINES CO SPROTT RESOURCES TD EMERGING MARKET TD SCIENCE & TECHNOLOGY TECK RESOURCES LTD B SV TFI INTERNATIONAL INC TORONTO 2.4% 7JN27 WESTON GEORGE 4.75% V PFD AVERAGE PURCHASE PRICE CAD USD 9.05 CAD CAD CAD CAD CAD CAD CAD DISPOSITIONS BNS C22 NVCC 2.58% FR30MR27 CLIFFS NATURAL RES INC ENCANA CORP ISHARES CDN CORP BOND ETF LASSONDE INDS INC-A SV NOVA SCOTIA 2.1% 1JN27 SPROTT RESOURCES TECK RESOURCES LTD B SV TFI INTERNATIONAL INC AVERAGE DISPOSITION PRICE CAD 5.74 USD CAD CAD CAD CAD 8.87 CAD CAD CAD INVESTMENT INCOME INCOME AMOUNT INTEREST 96, CAD DIVIDENDS 658, CAD This summary does not include fund expenses for the quarter, it is not a full representation of the net asset value.

9 Disclosure: Data as of June 30, This report doesn t represent your personal portfolio and it is not meant to replace the investment account statements provided by your financial institution. The underlying holdings and data provided in this report represent those of the Willoughby Investment Pool. Your personal investment account held at your financial institution may include other securities in addition to the Willoughby Investment Pool. For specific information including the amount of units you hold in the Willoughby Investment Pool, your cost base and any income distributions, please refer to your investment account statements or contact your financial advisor. Commissions, trailing commissions, performance fees, management fees and expenses may be associated with pooled and mutual fund investments. Please read the Willoughby Investment Pool Simplified Prospectus before investing. You can obtain a Simplified Prospectus from Willoughby Asset Management Inc. The Simplified Prospectus for Willoughby Asset Management Inc. s investment funds does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. The fund returns are not guaranteed, values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. All returns are presented net of all fees, including the management fee, administration fees and expenses and any performance fee that might apply. Your financial institution may charge other fees and expenses. The portfolio return figures represent those of the Willoughby Investment Pool Series A. The management fee may vary from series to series. For further information on different fund pricing options please refer to the Simplified Prospectus. WILLOUGHBY ASSET MANAGEMENT INC. MNP Tower, W Hastings St. Vancouver, British Columbia, V6E 0C3 Phone (local): Toll Free: admin@willoughbyasset.com