NORTHGATE EQUITY STRATEGY POOL
Q2 REPORT – SERIES F | JUNE 30, 2019 NORTHGATE EQUITY STRATEGY POOL – SERIES F COMMENTARY Q2 REPORT – JUNE 30, 2019
The general trend in world markets in Q2 2019 was upwards, although not at the same pace investors saw in Q1 as markets were recovering from the market bottom that occurred over Christmas. Broader markets in North America were all up from the previous quarter: The TSX was up +1.74% while the S&P 500 was up 1.66% in Canadian dollar terms (3.79% in USD). The MSCI was up +1.23% CAD and the MSCI Emerging Markets was off slightly at -2.35%. Chinese markets continued their slide (Shanghai Composite -7.72% CAD) as trade tensions and tariffs with the USA have begun to weigh-in on performance. These trade tensions coupled with a declining US dollar has also served to lift the price of gold by almost 7%. Oil declined by just over 5% during the second quarter of 2019.
Northgate is a pure equities fund and finished the quarter with a return of 1.58% which was in line with the other broader North American markets. Year to date performance (the fund began on February 13th of 2019) as of the end of Q2 2019 was +3.85%. Note: most of the gains in the markets occurred in January prior to the launch of the fund. Leading the way were Dollarama, Boyd Group and Badger Daylighting in Canada returning 29%, 20%, and 18% respectively over the quarter. On the US front, L3Harris Technologies, Cintas and Facebook had great quarters with 18%, 17%, and 16% second quarter returns.
Perhaps the biggest movement during the second quarter has been that of the Canadian dollar versus its US counterpart. Over the course of the quarter the Loonie rose by 1.95% and has risen by more than 4% to date in 2019. While that’s good news for the cross-border shoppers and the snowbird vacationers, it has a negative impact on US dollar denominated assets that are held and converted into Canadian dollar accounts such as TFSAs and RSPs (Note: a similar effect occurs with many Canadian investment holdings). Despite this 4% headwind, the US market is up 12.78% on the year which helps support the notion that Canadian investors should continue to invest into some of the largest and greatest companies in the world, many of which reside in the United States.
TOTAL PORTFOLIO SOLUTIONS ASSET ALLOCATION & NORTHGATE EQUITY STRATEGY POOL – SERIES F Q2 REPORT – JUNE 30, 2019 GEOGRAPHIC BREAKDOWN
ASSET ALLOCATION
Cash & Cash Equivalent 2.0%
Canadian Equity 27.6%
American Equity 65.7%
Foreign Equity 4.6%
Notes: Funds have been allocated in more than one asset class.
TOP GEOGRAPHIC BREAKDOWN
United States 66.4%
Canada 29.4% Asia 2.8%
Europe 0.8% NORTHGATE EQUITY STRATEGY POOL – SERIES F PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
CASH & CASH EQUIVALENT
TOTAL PORTFOLIO SOLUTIONS NORTHGATE EQUITY STRATEGY POOL – SERIES F PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
CANADIAN EQUITIES NORTHGATE EQUITY STRATEGY POOL – SERIES F PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
AMERICAN EQUITIES NORTHGATE EQUITY STRATEGY POOL – SERIES F PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
FOREIGN EQUITIES
MUTUAL FUNDS BREAKDOWN
CHINA FUND PRECIOUS METALS FUND GLOBAL ENTERTAINMENT & COMMUNICATIONS FUND HEALTH SCIENCES FUND SCIENCE AND TECHNOLOGY FUND US BLUE CHIP EQUITY FUND US MID CAP GROWTH FUND
20.38% NORTHGATE EQUITY STRATEGY POOL – SERIES F TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
PURCHASES Average Purchase Price
MAGNA INTL INC 68.7 CAD FACEBOOK INC CL-A 192.0 USD CONSTELLATION SOFTWARE 1156.8 CAD COLLIERS INTL GRP INC SVS 92.0 CAD PREMIUM BRANDS HLDGS CORP 78.1 CAD APPLE INC 203.1 USD DOLLARAMA INC 41.2 CAD TFI INTERNATIONAL INC 41.7 CAD ALIGN TECH INC 308.6 USD CHINABMO GRT FUND CHINA-F /N 20.2 CAD DYNPRECIOUS PRE METAL METALS-F/NL/N FUND 14.5 CAD ALPHABET INC CL-A 1160.3 USD WASTE CONNECTIONS INC-NEW 126.4 CAD BADGER DAYLIGHTING LTD 42.8 CAD TDUS USMID M/C CAP GRW GROWTH F NL/N FUND 41.7 CAD CCL INDS INC-CL-B NV 63.5 CAD BOYD GROUP INCM FND T/U 165.2 CAD TOROMONT INDUSTRIES LTD 70.0 CAD WASTE MANAGEMENT INC 108.2 USD SYSCO CORP 74.7 USD LULULEMON ATHLETICA INC 171.9 USD AIR CANADA VTG & VAR VTG 40.5 CAD ANTHEM INC 280.3 USD PARKLAND FUEL CORP 39.5 CAD ARITZIA INC SUB VTG 19.5 CAD CINTAS CORP 223.7 USD ADOBE INC 276.6 USD HEALTHTD HLTH SCIENCES SCI-F /NL/N FUND 51.2 CAD JP MORGAN CHASE & CO 113.5 USD CONSTELLATION BRANDS CL-A 194.9 USD COMCAST CORP CL-A 42.4 USD GREAT CDN GAMING CORP 50.9 CAD FIDELITY NATL INFO SVCS 120.0 USD GILDAN ACTIVEWEAR INC 49.5 CAD NORTHGATE EQUITY STRATEGY POOL – SERIES F TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
PURCHASES Average Purchase Price
KEURIG DR PEPPER INC 29.5 USD CANADA GOOSE HLDGS INC SV 50.2 CAD HERSHEY COMPANY (THE) 134.0 USD MANULIFE FINANCIAL CORP 24.6 CAD MARKETAXESS HLDGS INC 318.5 USD CI FINANCIAL CORP 21.3 CAD BRP INC 47.1 CAD CELGENE CORP 95.5 USD LAURENTIAN BANK OF CANADA 44.9 CAD LENNAR CORP 52.7 USD AMERICAN EXPRESS CO 122.9 USD GENERAL MILLS INC 51.3 USD HARRIS CORP - DEL * 187.4 USD AMERIPRISE FINL INC 144.8 USD NORTHROP GRUMMAN CORP 302.9 USD TC ENERGY CORP 64.4 CAD SMITH A O CORP 55.8 USD GLOBALTD GL E&C ENTERTAINMENT-F /NL/N & COMMUNICATIONS FUND 63.1 CAD NORTHGATE EQUITY STRATEGY POOL – SERIES F TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
DISPOSITIONS Average Disposition Price
MAGNA INTL INC 61.9 CAD CONSTELLATION SOFTWARE 1141.2 CAD COLLIERS INTL GRP INC SVS 82.6 CAD APPLE INC 180.0 USD CSX CORP 77.6 USD TFI INTERNATIONAL INC 40.1 CAD NVIDIA CORP 159.6 USD ALIGN TECH INC 296.0 USD BOEING COMPANY 380.0 USD ALPHABET INC CL-A 1075.8 USD WASTE CONNECTIONS INC-NEW 123.0 CAD BADGER DAYLIGHTING LTD 48.3 CAD CANADIAN PACIFIC RAIL 286.2 CAD CCL INDS INC-CL-B NV 55.7 CAD BOYD GROUP INCM FND T/U 147.9 CAD TOROMONT INDUSTRIES LTD 59.6 CAD THOMSON REUTERS CORP-NEW 85.0 CAD PEMBINA PIPELINE CORP 48.7 CAD WASTE MANAGEMENT INC 115.2 USD VAIL RESORTS INC 211.3 USD COPART INC 65.2 USD AIR CANADA VTG & VAR VTG 31.8 CAD OLD DOMINION FREIGHT LINE 140.1 USD ARITZIA INC SUB VTG 18.4 CAD TD AMERITRADE HOLDING CP 51.5 USD PROGRESSIVE CORP OHIO 72.9 USD HEALTHTD HLTH SCIENCES SCI-F /NL/N FUND 46.9 CAD NETFLIX INC 361.6 USD ROYAL BANK OF CANADA 105.2 CAD ULTA BEAUTY INC 341.6 USD CONSTELLATION BRANDS CL-A 185.5 CAD COMERICA INC 76.5 CAD CAE INC 31.0 CAD GREAT CDN GAMING CORP 43.6 CAD NORTHGATE EQUITY STRATEGY POOL – SERIES F TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
DISPOSITIONS Average Disposition Price
ISHARES S&P/TSX60 IDX ETF 24.9 CAD TUCOWS INC-NEW 92.5 CAD ROGERS COMMUNICATION-B NV 69.4 CAD METRO INC 49.3 CAD EQUITABLE GROUP INC 71.1 CAD TRACTOR SUPPLY CO 99.3 USD NOVO-NORDISK A/S-ADR 48.6 USD LOWES COMPANIES INC 109.5 USD INTUITIVE SURGICAL 493.6 USD CLOROX COMPANY 147.9 USD AMPHENOL CORP CL-A 93.6 USD AT & T INC 30.6 USD MANULIFE FINANCIAL CORP 23.8 CAD CELGENE CORP 95.8 USD GENERAL MILLS INC 48.7 USD SMITH A O CORP 50.0 USD NORTHGATE EQUITY STRATEGY POOL – SERIES F DISCLAIMER Q2 REPORT – JUNE 30, 2019
Disclosure: Data as of June 30, 2019.
This report doesn’t represent your personal portfolio and it is not meant to replace the investment account statements provided by your financial institution. The under lying holdings and data provided in this report represent those of the Northgate Equity Strategy Pool. Your personal investment account held at your financial institution may include other securities in addition to the Northgate Equity Strategy Pool. For specific information including the amount of units you hold Northgate Equity Strategy Pool, your cost base and any income distributions, please refer to your investment account statements or contact your financial advisor.
Commissions, trailing commissions, performance fees, management fees and expenses may be associated with pooled and mutual fund investments. Please read the Northgate Equity Strategy Pool Offering Memorandum before investing. You can obtain a Offering Memorandum from Willoughby Asset Management Inc. The Offering Memorandum for Willoughby Asset Management Inc.’s investment funds does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.
The fund returns are not guaranteed, values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. All returns are presented net of all fees, including the management fee, administration fees and expenses and any performance fee that might apply. Your financial institution may charge other fees and expenses. The portfolio return figures represent those of the Northgate Equity Strategy Pool Series F. The management fee may vary from series to series. For further information on different fund pricing options please refer to the Offering Memorandum.
WILLOUGHBY ASSET MANAGEMENT INC. MNP Tower, 3100-1021 W Hastings St. Vancouver, British Columbia, V6E 0C3 Phone (local): 604.558.6822 Toll Free: 1.877.588.6822 www.willoughbyasset.com [email protected]