For What It's Worth - September Portfolio Benchmarks

We are 8 months into a year which many ‘experts’ thought would see a sizable decline in equity markets and a huge collapse in the bond market. Well the bond market has certainly seen a pullback but hardly what you would call a collapse and global equity markets are moderately higher buoyed by the continued strength of the U.S. equity market (SP500 up 7.83% year to date).

Interest rates are slightly higher year to date as inflation is in the sweet spot of 2% and increased earnings for corporations continue to be a catalyst for higher share prices.

Will this continue on forever? No! Which is why I continue to step up on my soap box and preach diversification and why I have pushed and prodded (gently of course) to add PRIVATE equity and PRIVATE fixed income to portfolios (TREZ Capital, Avenue Living Apartments, Centurion Real Estate, Nationwide Storage)

It is also very important to ensure that income oriented clients have 3-5 years cash flow in low-volatility assets so cash flow streams are protected from a recession and the volatility for PUPLIC EQUITIES that will accompany that period (18-36 months).


As you can see by the chart below growth clients (70% equity) have a return in the 3.32% range and income oriented clients (70% fixed income) have a return of about 1.34%.

Benchmark comprised of:

TD Bond

i-shares XIU (Canada)

i-shares XAW (global equities)

(equity portion is 50% XIU and 50% XAW)

It is important to understand your portfolio target allocation in order to review portfolio performance. These are also short term numbers and 3-5 year averages are more important in determining if your goals are being met.

OPPORTUNISTIC EQUITY STRATEGIES (for those with individual security positions)

Invesque Inc is a real estate investment company that specializes in the acquisition of health care and senior living properties throughout North America.

Invesque INC. is a company whose bonds many clients have owned and still own. I have included a recent analyst report from Industrial Alliance for those interested in some light reading :)

This is a US$ position but can be held in all client accounts.

BSR Real Estate Investment Trust is an internally managed, newly-created, unincorporated, open-ended real estate investment trust. The principal business of the REIT is to acquire multi-suite residential rental properties across the United States.

Moving BSR to "strong buy" from "buy," he maintained a target price of U$11. The average target on the Street is US$10.59.

"At current levels, BSR's units offer an intriguing entry point due to its discount valuation to its underlying real estate value and to its North American multi-residential REIT/REOC peers," said Mr. Sturges

Opportunistic FIXED INCOME Strategies (for those with individual positions)

Two of the above FIXED INCOME positions are for JUST ENERGY. Ron Joyce (TIM HORTONS) owns over 10% of the firm and has just recently added to this position.

‘On Aug. 22, Ron Joyce, with an ownership position exceeding 10 per cent, purchased 100,000 shares at a cost per share of $3.7811 for an account in which he has indirect ownership (Jetport Inc.), increasing the portfolio’s holdings to 17,756,051 shares.’

The company share price has been struggling lately as guidance was not great in the last quarter. The firm issued a release that I have included below.

I am also including JUST ENERGY shares as a HIGHER RISK opportunity (see chart below).

Other high risk ‘trades’ are CI Funds, GE (general electric), and from the energy sector Paramount (POU) and Tourmaline Oil (TOU). For those interested in the ‘story’ on those please e-mail me and I will forward.

Now that we are through the summer Gayle will be trying to contact those that have not had a meeting in the last 90 days. This meeting can be face to face depending on your availability.

The views expressed do not necessarily reflect the opinion of Argosy Securities. The information contained herein may not apply to all types of investors. Please consult a proffessional before making an investment decision.


The information and opinions contained herein have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Argosy nor its affiliates accepts any liability whatsoever for any loss arising from any use of this report or its contents. This report is not, and is not to be construed as, an offer to sell or solicitation of an offer to buy any securities and/or commodity futures contracts. The securities mentioned in this report may not be suitable for all investors nor eligible for sale in some jurisdictions. This research and all the information, opinions, and conclusions contained in it are protected by copyright. This report may not be reproduced in whole or in part, or referred to in any manner whatsoever, nor may the information, opinions, and conclusions contained in it be referred to without the prior express consent of Argosy.

‘historical analysis does not reflect future returns’

#2018 #InvestmentPortfolio #benchmarks #benchmarkreturns #Portfolio #stockexchange

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