WILLOUGHBY INVESTMENT POOL

Transcription

1 WILLOUGHBY INVESTMENT POOL Q2 REPORT SERIES F JUNE 29, 2018 COMMENTARY ALLOCATION BY ASSET CLASS PERFORMANCE HISTORY PORTFOLIO HOLDINGS TRADING ACTIVITY

2 COMMENTARY The 2nd quarter of 2018 marked one of the first quarters in a long time that the Canadian Market (TSX) outpaced it s Southern rival. The TSX was up 5.92% during Q2 as it recovered from a very weak start to the year and is now just above break-even at 0.42% ytd. The US market (S&P 500) was up 2.93% in Q2 bringing it to 1.67% ytd. The Bond Market (XBB) turned slightly positive towards the end of the quarter but has only grown by 0.31% ytd. On the currency front, the Canadian Dollar declined another 1.88% over the quarter bringing the ytd decline to 4.27%. This move may not be welcomed by our snowbirds or other visitors to the US, but it is good for many of our investments. The Willoughby Portfolio (WIP) posted another strong quarter with a 3.1% gain bringing year to date performance to 5.2% (10.4% annualized). There was quite a bit of activity in the portfolio over the quarter as we unloaded positions in Goldman Sachs, Applied Materials, Packaging Corporation, and New Flyer Industries as they all dropped below their respective 200 day moving average (dma) and were faced with declining fundamentals. Although we had made money overall on these stocks since we first purchased them, our strategy suggested we sell the weakness and move into stronger candidates. Our new buys worked out really well over the quarter with a 26.33% return for Macy s Department Store since April (it also pays a 4% dividend), a 26.58% gain for Netflix since picking it up in May, and an 11.46% gain for Trip Advisor that we picked up at the beginning of June. Towards the end of the quarter, we started new positions in US company, Adobe Systems (software, photoshop, PDFs) and in Canadian Companies Colliers International Group (Real Estate), Constellation Software, and Premium Brands (specialty foods)...all very strong companies. We also decided to take some profits from two of our positions (Magna and Copart) that had done very well and were becoming larger components of the portfolio. We may consider adding back to them on any weakness as we continue to like them long term. As a reminder, WIP will be paying a 1% dividend early in July and then another 1% at the end of the year.

3 ASSET ALLOCATION & PERFORMANCE HISTORY ASSET ALLOCATION 1. CASH & CASH EQUIVALENTS 2. BOND 3. CANADIAN EQUITY 4. AMERICAN EQUITY 5. FOREIGN EQUITY PERFORMANCE HISTORY 12,000 11,500 11,000 10,500 10,000 9,500 CLASS F

4 PORTFOLIO HOLDINGS COST MARKET WEIGHTING 1. CASH & CASH EQUIVALENTS 2.62% UNREALIZED GAIN & LOSS 2. BONDS % ALBERTA MTN 2.9% 20SP % 1.37% ALIMENT S6 RD3.056%26JL % -0.25% ATRIUM CV RED 5.25%30JN % 0.90% BELL CDA CB 3.6% 29SP % 1.64% BELL CDA CB %12AG % -0.59% BELL CDA RED 2.7% 27FB % -0.85% BRKFLD REN CB 3.63%15JA % 1.56% BROOKFIELD C26 3.8%16MR % 0.32% CDA-REAL RET 4.25% 1DC % -6.12% CDN NAT RES CB 3.42%1DC % -0.81% ENBRIDGE CB % 8JN % -0.65% EXCH ICM CV RD5.25%31DC % 0.59% EXCH INCM CV 5.25% 30JN % 0.04% FAIRFAX FIN CB 4.25%6DC % -0.47% FIRST CAP CB 3.753%12JL % -0.43% HUSKY ENGY RED 3.6%10MR % -0.91% INTACT FINL CB 2.85%7JN % -0.48% INTER PPLN CB2.734%18AP % -0.07% INT-PROV QUEBEC 1OC % -0.10% METRO INC CB 3.39% 6DC % -0.43% MFC RED 3.049%-F/R 20AG % -0.76% MONTREAL 3% 1SP % 1.08% PM FRT ICM CL-F/NL/N % -2.71% PROV NFLD 2.3% 2JN % -0.62% TELUS CORP MTN 4.4% 1AP % 0.77% TORONTO 2.4% 7JN % -0.84% WESTON GEORGE 4.75%-V PFD % -4.59% ENBRIDGE INC PFD SER A % -3.78%

5 PORTFOLIO HOLDINGS UNREALIZED GAIN & COST MARKET WEIGHTING LOSS 3. CANADIAN EQUITY % ANDREW PELLER LTD-A NV % 1.76% BOYD GROUP INCM FND T/U % 21.84% CANADIAN PACIFIC RAIL % 17.00% COLLIERS INTL GRP INC SVS % 3.64% CONSTELLATION SOFTWARE % -0.02% DOLLARAMA INC % 50.45% MAGNA INTL INC % 33.53% PREMIUM BRANDS HLDGS CORP % -2.59% SAVARIA CORPORATION % -3.07% 4. AMERICAN EQUITY 48.27% 21.57% ADOBE SYS INC % -2.54% BANK OF AMERICA % BOEING COMPANY % 0.79% CATERPILLAR INC % 2.19% COPART INC % % DOLLAR GENERAL CORP % 6.18% FACEBOOK INC CL-A % 29.51% FIDELITY GLOBAL TECH % 45.72% MACY'S INC % 26.33% MICRON TECHNOLOGY INC % % MKS INSTRUMENT INC % 10.32% NETFLIX INC % 26.58% OLD DOMINION FREIGHT LINE % 12.54% TD HLTH SCI-F /NL/N % 2.77% TD SCI&TEC F SR NL/N % 38.31% TRIPADVISOR INC % 11.46% UNITED HEALTH GROUP INC % 30.91% W W GRAINGER INC % 17.76% 5. FOREIGN EQUITY 12.63% 5.76% 1832 ASSET MANAGEMENT DYN EURO VAL-F /NL/N % 12.64% 1832 ASSET MANAGEMENT DYN PWR GL GW-F/NL/N % 4.08% TD EM MKT F NL/N % 0.60%

6 TRADING ACTIVITY PURCHASES AVERAGE PURCHASE PRICE ATRIUM CV RED 5.25%30JN CAD BELL CDA CB %12AG CAD CDN NAT RES CB 3.42%1DC CAD EXCH ICM CV RD5.25%31DC CAD FAIRFAX FIN CB 4.25%6DC CAD FIRST CAP CB 3.753%12JL CAD METRO INC CB 3.39% 6DC CAD ALIMENT S6 RD3.056%26JL CAD INTER PPLN CB2.734%18AP CAD MFC RED 3.049%-F/R 20AG CAD HUSKY ENGY RED 3.6%10MR CAD ENBRIDGE CB % 8JN CAD MONTREAL 3% 1SP CAD BROOKFIELD C26 3.8%16MR CAD BRKFLD REN CB 3.63%15JA CAD ALBERTA MTN 2.9% 20SP CAD BELL CDA CB 3.6% 29SP CAD MACY'S INC USD NETFLIX INC USD FACEBOOK INC CL-A USD PROV NFLD 2.3% 2JN CAD TORONTO 2.4% 7JN CAD TELUS CORP MTN 4.4% 1AP CAD CONSTELLATION SOFTWARE CAD TRIPADVISOR INC USD COLLIERS INTL GRP INC SVS CAD PREMIUM BRANDS HLDGS CORP CAD ADOBE SYS INC USD

7 TRADING ACTIVITY DISPOSITIONS AVERAGE DISPOSITION PRICE ALLIED PPTY R/EST INV T/U CAD MAGNA INTL INC CAD UNITS-GRANITE REIT-STAPLE CAD APPLIED MATERIALS INC USD PMO MTHY INCM-I/NL/N CAD EXCH INCM CV 5.25% 30JN CAD ISHRS 1-10Y LADD GOVT BND CAD PACKAGING CORP AMERICA USD NORTHWEST HLTHCR REIT T/U CAD SLATE OFFICE REIT T/U 7.49 CAD GOLDMAN SACHS GROUP INC USD SOBEYS CB % 8AG CAD FACEBOOK INC CL-A USD TRANSALTA 5% 25NV CAD COPART INC USD NFI GROUP INC CAD

8 DISCLAIMER Disclosure: Data as of June 29, 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