WILLOUGHBY INVESTMENT POOL

Transcription

1 WILLOUGHBY INVESTMENT POOL Asset Management Solutions for Discerning Investors

2 THE WILLOUGHBY PHILOSOPHY With a low interest rate environment, investors can no longer turn to cash or near cash investments as a means to build and retain wealth. Over time income tax implications and inflation erode capital. The opposite extreme of aggressive equities is also an approach which we don t favour. Investors using the Willoughby Investment Pool will generally live through another five to seven economic & market cycles. As trying to time these cycles is a futile exercise, we prefer to prepare rather than react. We believe that more can be achieved through efficient portfolio construction. By quantifying risk through back-tested portfolio analyses and using a disciplined approach to security selection, we aim to capture strong, risk adjusted returns.

3 WILLOUGHBY INVESTMENT POOL POOL S CONSTRUCTION PROCESS (US) STEP FUNDAMENTAL SCREEN Market Cap greater than $0 billion 0 Earnings Per Share Growth greater than 7% compounded annually Return on Equity Greater than 4% Profit margins greater than 7% The ability to repay long-term debt through annual net income over the next 0 years Exceptions STEP 2 SORT STOCKS INTO SECTORS JOR SECTORS Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Information Technology Materials Real Estate Telecom Services Utilities STEP RANK STOCKS & SECTORS Momentum ( month performance) Choose Top 0 Sectors Trading above 200 Day Moving Average & in Choose Top Stock in Each Sector (as above) with a focus on the highest yr Return to Drawdown POOL S MONITORING PROCESS st Day of every month all stocks reviewed to determine if they ve dropped below 200 D If so, stock replaced with another from the updated Top 0 list If a Bond is found in the Top 0, it should be purchased If Cash is in the Top 0, it will be held for all positions at or below that position

4 POOL CONSTRUCTION EXAMPLE SECURITY SELECTION PROCESS * CANADIAN STOCK MODEL Symbol Name Industry Market Cap ($Millions) Beta EPS EPS FUNDAMENTALS PERFORNCE RISK TREND SCORES EPS EPS 0 ROE Earnings Yield Dividend YTD CCL.B.TO CCL Industries Packaging & Containers % 4.0%.%.% 20.97%.% 0.9%.0%.4%.2% 2.% 8.4%.90%.00% 24.90% 24.9% 2.48 $ 2. $ $ 29.9 YES YES No data 0 No data 2 PBH.TO Premium Brands Holdings Packaged Foods % -.04% -.7% No data 4.4% 0.79% 2.4% 2.40% 0.7% 4.2% 7.% 99.72% 49.9%.74% No data.8%.9 $ 7.2 $ 8.8 $ 0. YES YES OTC.TO Open Text Software - Application % 27.% 22.22% 24.80% 2.48%.8%.0% 4.97% 8.00% 4.8%.2% -.08% 2.8% 8.49% 22.08% 7.04% 0.88 $ 9.8 $ 2. $.9 YES YES 9 4 MRU.TO Metro Grocery Stores % 7.0% 0.% 2.2% 9.9%.0%.0% 0.20% -.2%.70% 7.0%.8% 0.% No data No data 9.0%.90 $ $ 8.48 $ 42.9 YES NO TD.TO The Toronto-Dominion Bank Banks - Global % 7.9% 0.% 0.%.7% 7.7% 2.8%.42%.27%.44% 7.% 2.2%.9% 9.% 9.2%.4% 0.88 $.9 $.0 $.92 YES YES FFH.TO Fairfax Financial Hldgs Insurance - Property & Casualty % 9.20% 4.09% No data.% 4.2% 2.0%.9% -0.4%.9%.82% 9.9% 2.9% 7.87% 22.0% 22.9%.48 $ $.7 $ YES NO E.TO Emera Utilities - Diversified %.47% 0.4% 9.4% 4.08%.7%.70%.2% 0.7%.2% 0.88% 9.%.2% 2.97% 4.% 2.8% $ 47.2 $ 4.97 $ 4. YES YES BCE.TO BCE Telecom Services % -2.04%.9%.8% 22.2% 4.99% 4.4%.07% 2.07% 0.% 8.8% 4.8%.2%.7%.0% 4.% 0.92 $ 9.2 $.89 $ 8.2 YES YES TCL.A.TO Transcontinental Publishing % 0.2% 8.0% 27.7%.42%.4% 9.78% 2.9% 22.77% 4.8% 22.2% 2.44%.2% 4.7%.88% $ 20.9 $ 8.20 $ 9. YES YES DOL.TO Dollarama Discount Stores % 2.84%.09% No data 8.28%.% 0.40%.47%.9% 24.0% 2.8% 29.7% 2.% 2.8% No data 49.2% $ 90.2 $ 8.92 $ 80. YES YES Max Drawdown RTD Price 200-Day 0-Day LT ST Mom. Fund. Value Averages %.0%.% 0.% 20.0%.2% 2.2% 4.4% 4.08%.97% 8.4% 27.9% 28.% 22.%.8% 2.42%.279 $ 9.8 $ 2.4 $.2 YES YES US STOCK MODEL Symbol Name Industry Market Cap ($Millions) Beta EPS EPS FUNDAMENTALS PERFORNCE RISK TREND SCORES EPS EPS 0 ROE Earnings Yield Dividend YTD GOOGL Alphabet Internet Content & Information % 2.22%.4% 24.70% 4.4% 2.9% 0.00% 0.24%.90% 9.7% 2.% 44.4% 24.2% 2.0% 4.2% 8.%.2 $ $ 709. $ YES YES MCD McDonald s Restaurants % -.% 0.94% 8.9% 4.0%.7% 2.7% 8.99%.%.79% 2.8%.94%.7% 4.7% 7.47% 4.% $ 28.0 $ 0.4 $ 2.8 YES YES 0 9 CHD Church & Dwight Co Household & Personal Products % 7.8% 0.42% 2.87% 20.4%.29%.4%.07% 2.0% 9.44% 8.%.28% 4.% 20.40% 8.9%.2%.0 $ 9.49 $ 8. $ 9.2 YES YES HRL Hormel Foods Packaged Foods % 0.94%.7% 0.8% 9.0%.0%.7% 0.0% -0.8% 4.02% 22.47% 9.% 0.0% 27.9% 9.9% 2.7% 2.9 $ 9.47 $.90 $ 42.7 YES NO 0 0 HSIC Henry Schein Medical Distribution % 9.2% 0.27%.7%.8%.2% 0.00% 7.4%.4%.8% 9.0% 2.% 2.0% 9.7%.9% 4.2%. $ 7.9 $.2 $.0 YES YES FAST Fastenal Industrial Distribution % 7.2% 4.48% 2.40% 28.0%.89% 2.0%.% -2.4% 22.7% 22.0%.99% 0.8%.2% 9.7%.2% 0.02 $ 4.8 $ 4.2 $ 4.29 YES NO RELX RELX Publishing % 0.07% 0.94% 7.72%.27%.7% 2.%.0%.24% 2.0%.08% 2.7% 9.7% 20.9% 0.42% 4.9%.20 $ 8.94 $ 7.4 $ 8.0 YES YES 9 No data No data 8 TRV Travelers Companies Insurance - Property & Casualty % 9.98% 0.4%.% 4.% 9.4% 2.%.% 2.0%.8%.9% 0.0% 4.0% 7.2%.% 2.8%.8 $.80 $ $ 2.0 YES YES NOC Northrop Grumman Aerospace & Defense % 9.98% 8.78% 0.44%.72%.4%.8% 7.4%.% 0.02%.94% 2.9% 44.0% 29.22% 4.2% 0.99% 4.02 $ $ 80.9 $ 92.9 YES YES SHW Sherwin-Williams Specialty Chemicals % 22.84% 2.%.0% 29.%.78% 0.9% 4.2% 4.82% 22.80% 2.2%.72% 20.2% 29.2% 2.7% 2.% 0.80 $ 29.0 $ 2.4 $ YES YES Max Drawdown RTD Price 200-Day 0-Day LT ST Mom. Fund. Value Averages % 9.7%.2%.2% 7.2% 4.28%.48% 7.22%.40%.97%.9% 2.98% 20.29% 2.0%.8% 7.0%.4 $ 89.7 $ 70. $ 80.7 YES YES MUTUAL FUND/ETF MODEL Symbol Name AUM YTD STATISTICS PERFORNCE RISK 0 Max Drawdown M:DYN4.TO Dyn Precious Metals % 2.4% 48.27% 44.74% 4.2%.% -2.7% No data 7.97% ZLU.TO BMO Low Volatility US Equity ETF - -.4%.9% M:TDB422.TO TD Science & Technology % 2.% -0.22%.0% 4.29% 4.0% 2.4% 4.4% 2.4%.48 4 M:DYN08.TO Dyn Global Real Estate %.8%.24% 7.28%.99% 2.8% 2.8%.92% ZLB.TO BMO Low Volatility Can Equity ETF %.49% 0.28% 2.8% 0.89%.9% 2.%.7 RTD Averages %.98%.4%.04% 9.09%.29% 7.7% 4.4% 2.8% * Charts are included for illustrative purposes only, do not include up to date, and the listed securities may not be held within the Willoughby Investment Pool at this time.

5 This information circular pertaining to the Willoughby Investment Pool ( The Portfolio ) is not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of The Portfolio is made pursuant to its Simplified Prospectus and only to investors in Canadian jurisdictions. Important information about The Portfolio, is contained in its Simplified Prospectus available through Willoughby Asset Management. Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with investments in The Portfolio. Investments in The Portfolio are not guaranteed, their values change frequently and past performance may not be repeated. Historical annual compounded total returns including changes in units value and reinvest ment of all distributions do not take into account sales, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Unit values and investment returns will fluctuate and there is no assurance that The Portfolio can maintain a specific net asset value. Asset Management Solutions for Discerning Investors