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Second question

2017

OVERALL STRATEGY
Where do you see the opportunities?
What about the risks?

brianberghuis

Brian W. H. Berghuis

TD U.S. Mid-Cap Growth Fund

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.”

June 2016

Brexit vote

“Brexit to us was anti-growth and anti-confidence, and we expected this would weigh on credit risk premiums more than it did.” 
“We saw the long end of emerging market bonds outperforming the three- to five-year sector by as much as 1500 basis points at one point, and we reduced duration accordingly, although sacrificing carry felt painful until late October 2016 and as the post-Trump reaction unfolded.”
Jane Lesslie, RBC Global High Yield Bond Fund

November 2016

U.S. election

“The result of the U.S. election has clearly taken financial markets by surprise.” 
“While the uncertainty created by this situation is a negative for markets, this may present opportunities both on the buy and sell side. As always, however, our decisions will be based on analyzable determinants of bottom-up value and not on top-down speculation.”
Mark D. Thomson, Beutel Goodman Canadian Equity Fund

OVERALL STRATEGY

Opportunities and risks
Where do you see the opportunities? What about the risks?