Our firm’s largest holding, the Willoughby Investment Pool was flat overall in May as it outperformed the TSX which lost 1.5%. The S&P500 was also flat with a -0.18% return for the month. Year to date, the portfolio is up 5.17% (as at May 31, 2017) while the TSX is up just 0.41% as the index heavyweights financials, energy, and resources have negatively affected performance.
The technology portion of the portfolio continues to lead the way with the likes of Applied Materials, Micron Technology and TD Science and Technology performing the best at 13.23%, 11.20%, and 4.74% respectively. On the Canadian front, Magna had a solid 6.72% month and Dollarama continues to move higher with a 4.71% return (Source: SIA Charts May 31, 2017).
Cliffs Natural Resources and Encana were two of the holdings which have moved below their respective 200 day moving average (trend reversal) and have been sold and replaced with Sierra Wireless— a Canadian Wireless Equipment company, and MKS Instruments— a US Scientific and Technical Instruments company. Both companies have had strong performance, are in strong industries and are growing their earnings at a rapid rate (charts below).
We have also reduced our energy holdings by approximately 50% and will look to increase our allocation again when market sentiment improves. In addition, we’ve increased our global exposure by adding both European and Emerging Markets holdings due to more attractive valuations than those found in North American markets.
Have a great weekend.
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
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“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.”
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