Mark Grammer, managing director and portfolio manager at Gluskin Sheff + Associates

Focus: Global equities
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MARKET OUTLOOK
We remain positive in our outlook for international equity markets. In particular, European and Japanese companies look attractive. They trade at discounted levels to comparable companies in North American equity markets and there is an improving earnings growth outlook in these markets. The political risk in Europe should resolve itself after the French election. We expect the outcome to be positive for the capital market.

TOP PICKS

TEMP HOLDINGS (2181 TYO)
The company is the second-largest human resource solutions company in Japan offering temporary staffing services, contract services and employment services. It also has an online solution for job seekers. Temp is extremely well positioned given the tight labour market in Japan. Net income has consistently grown at double digits and we expect that to continue into the foreseeable future.

KASIKORNBANK PCL (KPCPY.PK)
The bank is an integrated full-service bank in Thailand. It is very well capitalized with a Tier 1 common equity ratio of 15 per cent. It is well positioned in the improving Thai economy and will benefit from the expected increase in infrastructure spending over the next few years. 

LVMH (LVMUY.PK)
The best quality, diversified luxury goods manufacturer and distributor. Its fully-integrated business model provides exposure to wine, cognac, perfumes, cosmetics, luggage, watches, jewelry and fashion. It is now benefiting from the recovering in luxury goods in China and the rest of the world. 

All are held in the fund and I don’t own any personally.
 

PAST PICKS: DECEMBER 16, 2016

DIAGEO (DGE LN)

• Then: £2,055
• Now: £2,211
• Return: +7.59%
• TR: +8.71%

INTESA SANPAOLO (ISP BIT)

• Then: €2.41
• Now: €2.50
• Return: +3.47%
• TR: +3.47%

TEMP HOLDINGS (2181 TYO)

• Then: ¥1,733
• Now: ¥1,995
• Return: +15.11%
• TR: +15.55%

TOTAL RETURN AVERAGE: +9.24%