The North American Growth and Income Basket invests with the following management style:
Value – lower earnings multiples than comparable companies.
Yield – Income has been and continues to be important to the basket’s overall return.
Increasing Dividends – Investing in companies that have the capacity to increase dividends over time.
Concentration – The portfolio is concentrated. The minimum number of securities is 9 and the maximum number is 14.
Pension worthy investments – Investments are bought with the idea that they may be held for long periods of time.
Who is the investment for?
The basket is geared for investors seeking a combination of growth and income and are able to tolerate a moderate level of volatility.
The standard fee is 1.5% annually for the basket. No basket fee in fee based accounts.
Benchmark 75% TSX 15% Corporate Bond Index 10% S&P 500 index.
Disclaimer: I have prepared this commentary to give you my thoughts on various financial aspects and considerations.
First Quarter 2020
No trades on the quarter. The best quarter since 2009 at 23%. Year to date laggards are largely in the financial sector. This included National Bank, down 14% , Fiera Capital, down 19.5% year to date, and Bank of America down 33%. Higher weighted and offsetting leaders include Wheaton Precious up 55% ,Northland Power up 13.5% since February purchase and Apple up 21% year to date, June 30. The Basket ended up flat year to date.