Overall strategy

2017

Where do you see opportunities?
What about the risks?

BRIAN W. H. BERGHUIS

TD U.S. Mid-Cap Growth Fund

brianberghuis

Biography

We use a bottom-up approach focused on fundamentals to find reasonably valued growth companies. I’m particularly interested in “steady Eddies” – mid-cap growth companies that are able to compound earnings growth at solid but not spectacular rates over lengthy periods.

These companies are often ignored by other mid-cap growth investors, who often gravitate towards companies with growth rates of 20% or more, which can be difficult to sustain over the long term.

“When we find these consistent growers, we tend to stick with them through market cycles. For this reason, our portfolio turnover ratio is generally low – in the range of 25% to 30% over the past few years.”

RBC Global High Yield Bond Fund

JANE LESSLIE

Biography

The election of Donald Trump will exacerbate a theme we have been espousing for some time, that investors will have to become more
discriminating among emerging markets instead of the buy-high, carry-at-any-cost strategy that prevailed post the financial crisis.

“We are seeing some long maturity emerging market bonds at near 2013 taper tantrum lows. For countries somewhat further up the credit spectrum with some experience of market volatility and past liquidity tests, and where there is some capacity to generate appropriate policy responses, we see opportunities.”

EdgePoint Global Portfolio

tyeboussada

Biography

POSITIONING A PORTFOLIO IN AN INFLATIONARY ENVIRONMENT

“We believe the best thing to own in an inflationary environment is a business with barriers to entry because it has the ability to move pricing up with inflation. If you think through history or look at the Forbes 400, the richest people in the world on that list are all business owners. They are not bond or gold owners. They are people who own businesses with pricing power that can lift their prices in line with or better than inflation over time. The ability to do that comes from barriers to entry in the business.”

Dynamic Equity Income Fund

Jasonbiggs

Biography

You have to stay diversified in all of the 11 S&P/TSX Composite Index key sectors. Never load up on one sector or get rid of one sector just because you are trying to predict the next 12 months. That is one core strategy. 

We tend to be a bit light on resources. I could be wrong, but I do think we are getting closer and closer to peak demand in resources.

“One of the opportunities that we are seeing is in the healthcare sector, a beaten-up sector that is quite affordable. A few years ago, it got too popular and overvalued.  Recently, it was one of the most unpopular sectors, but it has come back after Trump got elected. There are also opportunities opening up again in the utilities space.”

MARK D. THOMSON

Beutel Goodman Canadian Equity Fund


Biography

We continue to be constructive on equity valuations in some of the businesses in the financial services, telecommunications and consumer sectors. In commodity-based businesses, we are looking for quality, low-cost assets. We see valuation risks in certain yield-driven strategies, especially in pipelines, utilities and REITs.

“A reach for yield is bidding up the price of many traditional sources of dividends, taking valuations in areas such as pipelines, utilities and REITs to expensive levels. We continue to be absent from any positions in these areas, as there are less expensive sources of dividend
income elsewhere in the market.”

“We continue to find sufficient opportunities to remain fully invested. Valuations for our current holdings in the industrial, consumer, financial, information technology and telecom sectors continue to offer attractive upside potential, based on a mix of free cash flow growth, supportive asset values and strong business models.”

Mark D. Thomson Beutel Goodman Canadian Equity Fund

Maple leaf CANADIAN OUTLOOK

Will the Bank of Canada raise interest rates in 2017?

Do you see any risks in having a narrow Canadian stock market?

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