Growth & Income Basket

North American Growth and Income Basket
As of June 30, 2020


Basket Investment Strategy

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.

Basket Performance

  3m1yr5yr10yrSince 05/23/07
Basket Performance23.26%19.95%11.31%10.93%7.27%
Benchmark15.56%
0.55%5.27%
7.2%
4.67%


Calendar Performance

 20192018201720162015
Return36.14%(2.97%)16.6%19.4%(3.4)%
Benchmark20.86%(6.08%)8.69%17.23%(3.74)%

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.

Fees

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.

This commentary reflects my opinion alone, and may not reflect the views of National Bank Financial Group. 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 the Research Department of National Bank Financial. National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX). National Bank Financial may act as financial advisor, fiscal agent or underwriter for certain companies mentioned herein and may receive remuneration for its services. National Bank Financial and/or its officers, directors, representatives or associates may have a position in the securities mentioned herein and may make purchases and/or sales of these securities from time to time on the open market or otherwise. The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. Unit values and returns will fluctuate and past performance is not necessarily indicative of future performance.



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.