Andy Nasr, vice president and investment strategist at Sentry Investments 
FOCUS: REITs, Global equities and macro strategy

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MARKET OUTLOOK

The “synchronous” global economic growth, which buoyed investor confidence in 2017, is ostensibly a mile wide, but only an inch deep. Higher commodity prices significantly contributed to improved global trade, rising inflation in developed economies and an acceleration in global growth. Looking forward, we believe that more diffuse growth will likely support a slight improvement in inflation and longer-dated government bond yields. While several central banks have recently expressed their desire to normalize interest rates, it remains likely that less accommodative monetary policy will be commensurate with an improvement in employment or inflation. Accordingly, our decision to remain overweight equities is broadly supported by expectations that corporate profitability will continue to improve alongside gradually tightening financial conditions that will cause credit growth to decelerate. As evidenced by low volatility, investors have seemingly shrugged off risk, which underscores the need for diversification and security selection. 

TOP PICKS

Andy Nasr's Top Picks

Andy Nasr, vice president and investment strategist at Sentry Investments, discusses his top picks: Cisco Systems, Morneau Shepell and Sensata Technologies.

CISCO SYSTEMS (CSCO.O)
Cisco is diversifying beyond core networking equipment into new higher growth segments, which include security and the Internet of Things. We expect the company to benefit from the proliferation of connected devices and a revenue mix that should sustain modest organic growth.

MORNEAU SHEPELL (MSI.TO)
The company provides consulting and outsourcing services, with a focus on pensions, benefits, health management and productivity solutions. Growth in the U.S., acquisitions and a highly recurring revenue model are likely to bolster free cash flow growth for the foreseeable future.

SENSATA TECHNOLOGIES (ST.N)
The company develops, manufactures and sells sensors/controls which are increasingly being used in industrial, aerospace and automotive markets. Growth in non-auto markets, representing around 40 per cent of revenues, should support organic sales and free cash flow growth. 

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
CSCO N N Y
MSI N N Y
ST N N Y

PAST PICKS: NOVEMBER 23, 2016

Andy Nasr's Past Picks

Andy Nasr, vice president and investment strategist at Sentry Investments, discusses his past picks: Alphabet, Newell Brands and Loblaw.

ALPHABET (GOOGL.O)

  • Then: $779.00
  • Now: $1,039.67
  • Return: 33.46%
  • Total return: 33.46%

NEWELL BRANDS (NWL.N)

  • Then: $48.17
  • Now: $30.52
  • Return: -36.63%
  • Total return: -35.05%

LOBLAW (L.TO)

  • Then: $69.27
  • Now: $68.19
  • Return: -1.55%
  • Total return: -0.07%

TOTAL RETURN AVERAGE: -0.55%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
GOOGL N N Y
NWL N N Y
L N N Y

FUND PROFILE
Sentry Small/Mid Cap Fund (Class F)
Performance as of: November 28, 2017

1 Month: 1.5% fund, 1.8% index
1 Year: 14.3% fund, 9.2% index
3 Year: 9.3% fund, 4.5% index

*Index: S&P/TSX Completion Total Return Index

TOP HOLDINGS AND WEIGHTINGS

  1. Live Nation: 4.2%
  2. Newell Brands: 3.1%
  3. Chemtrade: 3.1%
  4. Great Canadian Gaming: 2.9%
  5. Laboratory Corp: 2.8%

WEBSITE: www.sentry.ca