WILLOUGHBY • COMMENTARY ALLOCATION BY ASSET CLASS INVESTMENT POOL • • PERFORMANCE HISTORY Q2 REPORT – SERIES A • PORTFOLIO HOLDINGS JUNE 30, 2019 • TRADING ACTIVITY WILLOUGHBY INVESTMENT POOL – SERIES A COMMENTARY Q2 REPORT – JUNE 30, 2019
Most stock markets around the globe continued their upward trend in the second quarter, albeit at a more muted pace than we saw in Q1. The TSX finished the quarter up 1.74%, the S&P 500 was up 3.79% (1.66% in Cdn Dollar terms (CAD)), MSCI up 3.35% (1.23% CAD), and MSCI Emerging Markets down slightly by -0.31% (-2.35% CAD). The Chinese market suffered the most over the quarter as trade tensions with the US continue to weigh on Chinese companies (Shanghai Composite down 7.72% CAD). Trade tensions along with a weakening US dollar helped lift gold by almost 7%. Oil declined by just over 5%.
On the fixed income front, bonds continued their strong start to the year with a 2.51% quarter which brings ytd performance to 6.52% (FTSE Canada Universe). As the Willoughby Investment Pool (WIP) is a balanced fund and thereby owns fixed income, this helped to stabilize performance. WIP Series A performance over the quarter was 1.35% which is in line with our benchmark and brings the Series A YTD performance to 9.92%. 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, Facebook had great quarters with an 18%, 17%, and 16% second quarter.
Over the course of the quarter, the Canadian dollar rose by 1.95% and now sits 4.16% above where we started the year. While this is welcome news to Canadians travelling south, it has a negative impact on US investments held in Canadian accounts (eg RSPs, TFSAs, etc) as values get converted back using a higher Canadian dollar. (Note: a similar effect occurs with many Canadian investment holdings). Despite the 4.16% Canadian dollar headwind, the US market is still 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 & WILLOUGHBY INVESTMENT POOL – SERIES A Q2 REPORT – JUNE 30, 2019 PERFORMANCE HISTORY
ASSET ALLOCATION
Cash & Cash Equivalent 4.3%
Fixed Income Securities 17.4%
Canadian Equity 20.5%
American Equity 52.9%
Foreign Equity 5.0%
Notes: Funds have been allocated in more than one asset class.
PERFORMANCE HISTORY
$12,500.00 $12,000.00 $11,500.00 $11,000.00 $10,500.00 $10,000.00 $9,500.00 WILLOUGHBY INVESTMENT POOL – SERIES A PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
CASH & CASH EQUIVALENT
TOTAL PORTFOLIO SOLUTIONS WILLOUGHBY INVESTMENT POOL – SERIES A PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
FIXED INCOME WILLOUGHBY INVESTMENT POOL – SERIES A PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
CANADIAN EQUITIES
TOTAL PORTFOLIO SOLUTIONS WILLOUGHBY INVESTMENT POOL – SERIES A PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
AMERICAN EQUITIES WILLOUGHBY INVESTMENT POOL – SERIES A PORTFOLIO HOLDINGS Q2 REPORT – JUNE 30, 2019
FOREIGN EQUITIES
MUTUAL FUNDS BREAKDOWN
GLOBAL DIVIDEND FUND 1.00 PRECIOUS METALS FUND 1.69 GLOBAL GROWTH FUND 2.18 GLOBAL TECHNOLOGY INNOVATORS 2.63 GLOBAL ENTERTAINMENT & COMMUNICATIONS FUND 2.02 HEALTH SCIENCES FUND 2.11 SCIENCE AND TECHNOLOGY FUND 2.09 US BLUE CHIP EQUITY FUND 2.14 US MID CAP GROWTH FUND 3.97 19.84%
TOTAL PORTFOLIO SOLUTIONS WILLOUGHBY INVESTMENT POOL – SERIES A TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
PURCHASES Average Purchase Price
MAGNA INTL INC 72.2 CAD COLLIERS INTL GRP INC SVS 91.5 CAD PREMIUM BRANDS HLDGS CORP 83.8 CAD ALIMENT COUCHE-TARD-B SV 81.4 CAD DOLLARAMA INC 41.1 CAD TFI INTERNATIONAL INC 42.3 CAD NVIDIA CORP 182.6 USD MASTERCARD INC CL-A 251.0 USD ALIGN TECH INC 308.5 USD CHINA FUND 20.0 CAD WASTE CONNECTIONS INC-NEW 126.9 CAD US MID CAP GROWTH FUND 42.1 CAD AMAZON COM INC 1914.8 USD CCL INDS INC-CL-B NV 63.6 CAD BOYD GROUP INCM FND T/U 165.0 CAD TOROMONT INDUSTRIES LTD 69.7 CAD WASTE MANAGEMENT INC 108.9 USD VAIL RESORTS INC 235.5 USD UNITED HEALTH GROUP INC 246.0 USD LULULEMON ATHLETICA INC 174.2 USD AIR CANADA VTG & VAR VTG 40.6 CAD ANTHEM INC 273.5 USD PARKLAND FUEL CORP 40.2 CAD NETFLIX INC 359.4 USD JP MORGAN CHASE & CO 112.5 USD CONSTELLATION BRANDS CL-A 208.3 USD COMCAST CORP CL-A 42.5 USD CIGNA CORP-NEW 156.2 USD TORONTO DOMINION BANK 75.0 CAD GREAT CDN GAMING CORP 52.0 CAD HERSHEY COMPANY (THE) 134.0 USD GLOBAL DIVIDEND FUND 24.8 CAD SHOPIFY INC CL-A SVS 395.0 CAD BRP INC 46.9 CAD WILLOUGHBY INVESTMENT POOL – SERIES A TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
PURCHASES Average Purchase Price
CI FINANCIAL CORP 21.4 CAD TYSON FOODS INC - CL A 79.2 USD MARKETAXESS HLDGS INC 319.1 USD KEURIG DR PEPPER INC 29.4 USD MANULIFE FINANCIAL CORP 24.5 CAD LENNAR CORP 52.8 USD CELGENE CORP 95.5 USD AMERICAN EXPRESS CO 123.0 USD LAURENTIAN BANK OF CANADA 44.9 CAD GENERAL MILLS INC 51.3 USD AMERIPRISE FINL INC 144.3 USD NORTHROP GRUMMAN CORP 305.2 USD SMITH A O CORP 54.6 USD TC ENERGY CORP 64.3 CAD GLOBAL ENTERTAINMENT & COMMUNCATIONS FUND 62.3 CAD FIDELITY NATL INFO SVCS 113.5 USD WILLOUGHBY INVESTMENT POOL – SERIES A TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
DISPOSITIONS Average Disposition Price
MAGNA INTL INC 62.0 CAD CONSTELLATION SOFTWARE 1141.1 CAD COLLIERS INTL GRP INC SVS 82.7 CAD PREMIUM BRANDS HLDGS CORP 76.0 CAD ALIMENT COUCHE-TARD-B SV 80.9 CAD APPLE INC 188.6 USD CSX CORP 77.7 USD TFI INTERNATIONAL INC 39.7 CAD NVIDIA CORP 159.5 USD MASTERCARD INC CL-A 235.8 USD ALIGN TECH INC 293.3 USD CHINA FUND 19.2 CAD BOEING COMPANY 380.0 USD ALPHABET INC CL-A 1133.8 USD WASTE CONNECTIONS INC-NEW 123.0 CAD US MID CAP GROWTH FUND 42.8 CAD CANADIAN PACIFIC RAIL 294.5 CAD CCL INDS INC-CL-B NV 55.4 CAD BOYD GROUP INCM FND T/U 148.5 CAD WSP GLOBAL INC 71.9 CAD TOROMONT INDUSTRIES LTD 60.0 CAD THOMSON REUTERS CORP-NEW 85.8 CAD PEMBINA PIPELINE CORP 47.4 CAD WASTE MANAGEMENT INC 114.6 USD WALGREENS BOOTS ALLIANCE 55.0 USD VAIL RESORTS INC 216.6 USD UNITED HEALTH GROUP INC 247.0 USD SOUTHWEST AIRLINES CO 52.8 USD MACY'S INC 24.7 USD COPART INC 65.2 USD AIR CANADA VTG & VAR VTG 31.9 CAD OLD DOMINION FREIGHT LINE 145.3 USD DOLLAR GENERAL CORP 118.0 USD ARITZIA INC SUB VTG 18.4 CAD TD AMERITRADE HOLDING CP 50.8 USD WILLOUGHBY INVESTMENT POOL – SERIES A TRADING ACTIVITY Q2 REPORT – JUNE 30, 2019
DISPOSITIONS Average Disposition Price
PFIZER INC 40.4 USD PROGRESSIVE CORP OHIO 73.1 USD CINTAS CORP 230.6 USD HEALTH SCIENCES FUND 50.0 CAD GILEAD SCIENCES INC 65.6 USD CHURCH & DWIGHT CO INC 73.1 USD ROYAL BANK OF CANADA 105.6 CAD LOBLAW COMPANIES LTD 65.2 CAD ENBRIDGE INC 48.7 CAD ULTA BEAUTY INC 336.1 USD VERIZON COMMUNICATIONS 56.8 USD UNITED PARCEL SERVICE-B 103.0 USD DEERE & CO 146.7 USD CONSTELLATION BRANDS CL-A 186.2 USD COMERICA INC 76.5 USD CIGNA CORP-NEW 151.6 USD CAE INC 31.0 CAD CDN TIRE CORP LTD-A NV 147.7 CAD TORONTO DOMINION BANK 75.0 CAD GREAT CDN GAMING CORP 41.5 CAD TELUS CORP MTN 4.4% 1AP43 105.2 CAD CDA-REAL RET 4.25% 1DC26 130.0 CAD GLOBAL TECHNOLOGY INNOVATORS 15.4 CAD MANULIFE FINANCIAL CORP 23.3 CAD CELGENE CORP 95.8 USD GENERAL MILLS INC 48.7 USD SMITH A O CORP 49.0 USD ROGERS COMMUNICATION-B NV 70.7 CAD TRANSCANADA CORP 62.1 CAD WILLOUGHBY INVESTMENT POOL – SERIES A 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 underlying holdings and data provided in this report represent those of the Willoughby Investment Pool. Your personal investment account held at your financial institution may include other securities in addition to the Willoughby Investment Pool. For specific information including the amount of units you hold in the Willoughby Investment 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 Willoughby Investment Pool Simplified Prospectus before investing. You can obtain a Simplified Prospectus from Willoughby Asset Management Inc. The Simplified Prospectus 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. Your financial institution may charge other fees and expenses. The portfolio return figures represent those of the Willoughby Investment Pool Series A. The management fee may vary from series to series. For further information on different fund pricing options please refer to the Simplified Prospectus.
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]