WILLOUGHBY INVESTMENT POOL

Transcription

1 WILLOUGHBY INVESTMENT POOL Q3 REPORT SERIES F SEPTEMBER 30, 2018 COMMENTARY ALLOCATION BY ASSET CLASS PERFORMANCE HISTORY PORTFOLIO HOLDINGS TRADING ACTIVITY

2 COMMENTARY The third quarter presented us with opportunities and challenges. Overall, the major indices were mixed. The Canadian stock market, as measured by the TSX Index slipped 1.4% and the US market, measured by the S&P500 Index, rose 7.65%. The Willoughby Investment Pool, which is a combination of US, Canadian and international equities and Canadian bonds was flat, gaining just 0.21% for the quarter. This brings YTD performance to 5.67% (F-series) and one-year performance to 11.83%. Some sectors performed really well, and others floundered. Healthcare led the way with the ten largest stocks in this sector returning 14.47%. Technology and Industrials were a close second with total returns in the 9 10% range. Consumer Cyclical returned just under 6%. Energy turned in a negative month and Utilities, Real Estate and Base Materials had lackluster performance. Going into the quarter, our largest positions were in Consumer Cyclical (27%), Technology (23%), Industrials (19%) and Healthcare (11%). As the quarter progressed, we slightly reduced our position in Consumer Cyclical (23%) by selling positions in Magna and Copart and Technology (22%), increased Industrials (21%) buy doubling our position in Savaria (our best performing stock for the quarter up over 20%) and started a new position in CSX Corporation. Our Healthcare exposure rose to 15% of the portfolio mainly due to strong performances from United Healthcare and TD Health Sciences (our largest stock and mutual fund holdings), up 10% and 9.4% respectively. Early in the quarter we added Mastercard, CSX, Imperial Oil, Methanex, Constellation Software, Premium Brand Holdings, and NVDIA. Mastercard, NVDIA and Methanex have done well, while Imperial Oil and Premium Brand Holdings never really got off the ground and have subsequently been sold. Volatility will likely continue on for the balance of the year so we will continue to add strength and remove weakness from the portfolio. We also faced challenges in both currency and in the bond component of our portfolio. The Canadian Dollar appreciated almost 2%, which was offset somewhat by hedging activities. Bonds, which make up approximately 20% of the portfolio, as measured by the ishares Canadian Bond ETF (XBB.TO) list 1.52% for the quarter.

3 ASSET ALLOCATION & PERFORMANCE HISTORY ASSET ALLOCATION Cash & Cash Equivalent 2.2% Fixed Income Securities 16.9% Canadian Equities 21.4% American Equities 51.4% Foreign Equities 8.1% PERFORMANCE HISTORY $12,500 Notes: Funds have been allocated in more than one asset class. $12,000 $11,500 $11,000 $10,500 $10,000 $9,500

4 PORTFOLIO HOLDINGS AMERICAN EQUITIES 1832 ASSET MANAGEMENT DYN PWR GL GW-F/NL/N

5 PORTFOLIO HOLDINGS CASH & CASH EQUIVALENT 1832 ASSET MANAGEMENT DYN EURO VAL-F /NL/N 1832 ASSET MANAGEMENT DYN PWR GL GW-F/NL/N FIXED INCOME

6 PORTFOLIO HOLDINGS

7 PORTFOLIO HOLDINGS CANADIAN EQUITIES 1832 ASSET MANAGEMENT DYN PWR GL GW-F/NL/N

8 PORTFOLIO HOLDINGS FOREIGN EQUITIES 1832 ASSET MANAGEMENT DYN EURO VAL-F /NL/N 1832 ASSET MANAGEMENT DYN PWR GL GW-F/NL/N

9 TRADING ACTIVITY PURCHASES ATRIUM CV RED 5.25%30JN20 BELL CDA CB %12AG26 CDN NAT RES CB 3.42%1DC26 FIRST CAP CB 3.753%12JL27 METRO INC CB 3.39% 6DC27 HUSKY ENGY RED 3.6%10MR27 ENBRIDGE CB % 8JN27 TORONTO 2.4% 7JN27 CONSTELLATION SOFTWARE COLLIERS INTL GRP INC SVS ADOBE SYS INC ENBRIDGE INC PFD SER A METHANEX CORP ALIMENT COUCHE-TARD-B SV APPLE INC EXCH ICM CV RD5.35%30JN25 CSX CORP WESTON GEORGE 4.75%-V PFD DOLLARAMA INC IMPERIAL OIL LTD BELL CDA CB 3.8% 21AG28 TFI INTERNATIONAL INC SAVARIA CORPORATION FIRST AST MRN CDA MOM ETF BMO NSD100 EQ HDG CAD ETF ISHARES U.S. S/C INDX ETF NVIDIA CORP MASTERCARD INC CL-A ALIGN TECH INC Average Purchase Price 100 CAD CAD CAD CAD CAD 99 CAD CAD CAD CAD CAD USD CAD CAD CAD USD CAD USD CAD CAD CAD CAD CAD CAD CAD CAD CAD USD USD USD

10 TRADING ACTIVITY ASSET ALLOCATION DISPOSITIONS MAGNA INTL INC EXCH INCM CV 5.25% 30JN23 BELL CDA CB 3.6% 29SP27 FACEBOOK INC CL-A PREMIUM BRANDS HLDGS CORP PM FRT ICM CL-F/NL/N ANDREW PELLER LTD-A NV MICRON TECHNOLOGY INC DOLLARAMA INC IMPERIAL OIL LTD BELL CDA RED 2.7% 27FB24 SAVARIA CORPORATION TD EM MKT F NL/N MKS INSTRUMENT INC CATERPILLAR INC BANK OF AMERICA Average Disposition Price CAD CAD CAD USD CAD CAD CAD USD CAD CAD CAD CAD CAD USD USD USD

11 DISCLAIMER Disclosure: Data as of September 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 under lying 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 F. 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