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McMurtry Investment Report – Portfolios (March 2017)
|Cash||EQ Bank – High Interest Savings (2.0% current rate)||EQ Bank – High Interest Savings (2.0% current rate)|
|Bonds||iShares XSB Short Term||iShares XSB Short Term|
|iShares XFR Floating Rate||iShares XFR Floating Rate|
|iShares CBO 1-5 Ladder Corp||iShares CBO 1-5 Ladder Corp|
|iShares CLF 1-5 Ladder Gov’t||iShares CLF 1-5 Ladder Gov’t|
|Preferreds||Security||Dividend Yield %||Security||Dividend Yield %|
|Horizons Active Mgt. Pfd HPR||4.07||Horizons Active Mgt. Pfd HPR||4.07|
|Common Stocks||Security||Dividend Yield %||Security||Dividend Yield %|
|Financials||Royal Bank RY||3.61||Royal Bank RY||3.61|
|TD Bank TD||3.21||TD Bank TD||3.21|
|Sun Life SLF||3.49||Sun Life SLF||3.49|
|JP Morgan JPM US||2.12||JP Morgan JPM US||2.12|
|Bank of America BAC US||1.22||Bank of America BAC US||1.22|
|Manulife MFC||3.20||Manulife MFC||3.20|
|T. Rowe Price TROW US||3.22||T. Rowe Price TROW US||3.22|
|Firm Capital FC||6.61||Visa V US||0.75|
|First Data FD US||0.00|
|Energy||Freehold FRU||4.10||Freehold FRU||4.10|
|Whitecap WCP||2.57||Whitecap WCP||2.57|
|Torc TOG||3.45||Torc TOG||3.45|
|Pembina Pipe Lines PPL||4.47||Pembina Pipe Lines PPL||4.47|
|Inter Pipeline IPL||5.82||Spartan SPE||0.00|
|Materials||Agnico Eagle AEM||0.94||Agnico Eagle AEM||0.94|
|Franco Nevada FN||1.35||Franco Nevada FN||1.35|
|HudBay Minerals HBM||0.00|
|Trevali Mining TV||0.00|
|Industrials||New Flyer Ind. NFI||2.16||New Flyer Ind NFI||2.16|
|WSP Global WSP||3.34||WSP Global WSP||3.34|
|Canadian Pacific CP||1.02||Canadian Pacific CP||1.02|
|General Dynamics GD US||1.60||General Dynamics GD US||1.60|
|ZCL Composites ZCL||2.63|
|Consumer Discretionary||Home Depot HD US||2.46||Home Depot HD US||2.46|
|Sleep Canada ZZZ||2.05||Sleep Canada ZZZ||2.05|
|Stanley Black and Decker SWK US||1.82||Stanley Black and Decker SWK US||1.82|
|Telecom||BCE BCE||4.95||BCE BCE||4.95|
|Rogers B RCI.B||3.38||Rogers B RCI.B||3.38|
|Consumer Staples||Alimentation Couche Tard ATD.b||0.61||Alimentation Couche Tard ATD.b||0.61|
|Loblaws L||1.50||Loblaws L||1.50|
|Pepsico PEP US||2.73||Pepsico PEP US||2.73|
|Mondelez MDLZ US||1.73|
|Technology||Apple AAPL US||1.66||Apple AAPL US||1.66|
|Microsoft MSFT US||2.44||Microsoft MSFT US||2.44|
|Cisco CSCO US||3.39||Shopify SH||0.00|
|Facebook FB US||0.00|
|Alphabet GOOGL US||0.00|
|Utilities||Fortis FTS||3.80||Fortis FTS||3.80|
|Healthcare||AmerisourceBergen ABC US||1.65||AmerisourceBergen ABC US||1.65|
|Johnson & Johnson JNJ US||2.62||Johnson & Johnson JNJ US||2.62|
|Walgreen Boots WBA US||1.74||Walgreen Boots WBA US||1.74|
|United Health UNH US||1.57||United Health UNH US||1.57|
|Merck MRK||2.85||Merck MRK||2.85|
|CVS CVS US||2.48||CVS CVS US||2.48|
|IBB Biotech ETF IBB US||0.16|
|Real Estate||Cdn Apt. REIT CAR.un||3.89||Cdn. Apt. REIT CAR.un||3.89|
|Chartwell REIT CSH.un||3.58||Chartwell REIT CSH.un||3.58|
|Pure Industrial AAR.un||5.22||Pure Industrial AAR.un||5.22|
|European Equity||BMO European ETF ZEQ||1.89||BMO European ETF ZEQ||1.89|
March 2017 Investment Commentary for Income and Growth Portfolios
I am not making any changes to the overall asset mix. The current portfolios already have a high cash content taking into account equity market uncertainty in regards to Trump’s trade protectionist policies and the upcoming European elections in France, Holland and Germany.
My equity portfolios remain overweight Financials, Industrials, Technology and Consumer Discretionary sectors.
I remain underweight Utilities, Real Estate, Consumer Staples, Telecom and Energy. The US shale crude oil producers continue to bring their production back on stream, causing inventories to rise sharply when OPEC is trying its best to cut production.
I am keeping Healthcare at Market weight.
I am reducing Materials from Market Weight to underweight as the base metal share prices have run up sharply and the gold companies are experiencing pricing pressure from falling gold prices in a period of rising interest rates.
In the financials area, I am adding T. Rowe Price, the high quality asset manager. This company will benefit from rising equity markets and historically has delivered strong performance results over time.
In the Industrial area, I am adding both Linamar and New Flyer Industries. The market has unfairly punished the Canadian auto parts companies regarding the potential border tax proposal from Trump. Linamar is a very cheap stock and offers solid growth opportunities.
New Flyer continues to show strong growth in the bus manufacturing area in North America and has most of its plants in the US away from the eyes of Trump. The stock is reasonable value given its projected growth rate.
Finally I am switching from Moog into General Dynamics in the US aerospace area. The latter company is growing faster than Moog and offers a dividend as well.
In the Energy sector, I am adding Pembina Pipe Lines. It offers a solid dividend and is growing nicely without a lot of commodity exposure.
In the telecom area, I am adding Rogers B stock to my portfolios. The company has a new CEO and is becoming much more client service focused than ever before. This is definitely helping its bottom line along with its sports and entertainment operations.
Finally, in the healthcare sector, I am adding AmerisourceBergen, a US pharmacy benefits manager with a close affiliation with Walgreens Boots.
McMurtry Investment Report – Sector Weights (March 2017)
Equity Sector Weights (%)
|Sector||My Weight||TSX Comp||S&P 500||50/50|
McMurtry Investment Report Asset Mix (March 2017)
Asset Mix – Income and Growth Portfolios
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