The Hudson Total Mandate Portfolio is one of our two portfolio models with Hudson generally available only to accredited investors, or those who qualify for certain exemptions. I’ve attached below comments from one of our Portfolio Managers, Matt Levy.
Have a great weekend!
Hudson ended last week with a Net Asset Value of $10.3065 up from $9.794 at the end of June, an increase of 5.1%.
As I write, only 3 equity positions are showing a loss while 19 positions are showing as a gain. EWU iShares MSCI UK Index (down 6.95%), EWG iShares MSCI Germany ETF (down 0.81%), and Morgan Stanley (down 4.29%) are the laggards in the portfolio overall. The European landscape has been challenging, due to several economic events as well as a strong decline in some European currencies. Most notably, the UK’s GBP post-Brexit move:
Morgan Stanley, on the other hand, has lagged the overall market along with the financials sector. However, our decision to keep financials in the portfolio has paid off this quarter. Morgan Stanley is up 37% from its Brexit low on June 27, on the back of continued strength of the US economy and the potential for interest rate increases. In addition, fears over the affect of Brexit on the world economy seem to have been overblown initially. MS also has a current yield of >2.5%. Chart below:
Enbridge is up on news this week of a potential $59 billion acquisition of Spectra Energy. Despite being an all-equity offering, we see this as a positive for Enbridge as this will diversify their asset base and growth platform going forward. National Bank Financial Markets upgraded Enbridge to an Outperform rating (from Neutral) with a price target of $63. Enbridge is up over 21% since our purchases on Jan 22 and Feb 9, YTD chart below:
Matthew Levy BSc, CIM, CFA
Portfolio Manager, Branch Manager
Daniel Popescu CFP, CIM, FMA, FCSI
President & CEO
MNP Tower, 3100-1021 West Hastings St.
Vancouver, BC V6E 0C3
T: 604-558-6830/1(877) 588-6822
For additional comments and info go to: www.harbourfrontwealth.com
“I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.”
Disclaimer – This information transmitted is intended to provide general guidance on matters of interest for the personal use of the reader who accepts full responsibility for its use, and is not to be considered a definitive analysis of the law and factual situation of any particular individual or entity. As such, it should not be used as a substitute for consultation with a professional accounting, tax, legal or other professional advisor. Laws and regulations are continually changing and their application and impact can vary widely based on the specific facts involved and will vary based on the particular situation of an individual or entity. Prior to making any decision or taking any action, you should consult with a professional advisor. The information is provided with the understanding that Harbourfront Wealth Management is not herein engaged in rendering legal, accounting, tax or other professional advice. While we have made every attempt to ensure the information contained in this document is reliable, Harbourfront Wealth Management is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is,” with no guarantee of completeness, accuracy, timeliness or as to the outcome to be obtained from the use of this information, and is without warranty of any kind, express or implied. The opinions expressed herein do not necessarily reflect those of Harbourfront Wealth Management Inc. The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. The opinions expressed are not to be construed as a solicitation or offer to buy or sell any securities mentioned herein. Harbourfront or any of its connected or related parties may act as financial advisor or fiscal agent for certain companies mentioned herein and may receive remuneration for its services. The comments and information pertaining to the Hudson Total Mandate Portfolio and/or the Willoughby Investment Pool (“The Portfolios”) are not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of The Portfolios is made pursuant to the Offering Memorandum and Simplified Prospectus and only to investors in Canadian jurisdictions. Important information about The Portfolios is contained in the Offering Memorandum and Simplified Prospectus available through Willoughby Asset Management. Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with investments in The Portfolios. Investments in The Portfolios are not guaranteed, their values change frequently and past performance may not be repeated. Historical annual compounded total returns including changes in unit value and reinvestment of all distributions do not take into account sales, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Unit values and investment returns will fluctuate and there is no assurance that The Portfolios can maintain a specific net asset value. Harbourfront Wealth Management Inc. (“Harbourfront”) has relationships with related and /or connected issuers, which may include the securities or funds discussed in this commentary and are disclosed in our Statement of Policies Regarding Related and Connected Issuers. This policy is included in your new client package, on our website, or can be obtained from your investment advisor on request.