Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities
U.S. equity markets are in the process of pricing the effects of the new Washington regime, namely tax reform, regulatory changes and an increasing rate of economic growth. All of these inputs are expected to have a meaningful impact on corporate earnings. Of course, the downside is if one or more of these initiatives is delayed, or fails completely. Given the setting, this is an environment to be alert to risks, namely exposure that exceeds asset mix targets and a concentration within a name or sector. Active investing will be a safer alternative to a passive approach.
ANTHEM (ANTM.N) – Latest purchase March 2017 at $164
Anthem is a managed care operator with 40 million members. The regulatory turmoil of U.S. health-care reform has provided an excellent opportunity to invest in an organization that has the scale and diversity to overcome the hurdles of a changing health-care landscape. Goodreid expects earnings for ANTM of $11 per share in 2017 and an ongoing growth rate in the 10-per-cent range.
BIOGEN (BIIB.O) – Latest purchase March 2017 at $292
Biogen is a biopharmaceutical company involved in the development of treatments for a variety of diseases. Their primary revenue sources are drugs that treat multiple sclerosis. The pipeline includes treatments for certain cancers and rheumatoid arthritis, and an exciting Alzheimers drug that shows promise. At just 15 times earnings, this stock has considerable upside.
WASHINGTON FEDERAL (WAFD.O) – Latest purchase January 2017 at $33
Regional banks will benefit greatly from the unwinding of the onerous regulatory environment instituted since 2008. In eight states and with 240 branches, this bank will benefit from a higher interest rate environment, stronger loan growth and higher margins.
PAST PICKS: FEBRUARY 17, 2016
HOME DEPOT (HD.N)
- Then: $121.21
- Now: $148.73
- Return: +22.70%
- TR: +38.03%
- Then: $106.33
- Now: $146.77
- Return: +38.03%
- TR: +39.94%
- Then: $39.78
- Now: $61.15
- Return: +53.72%
- TR: +55.39%
TOTAL RETURN AVERAGE: +44.45%
FUND PROFILE: GOODREID NORTH AMERICAN BALANCED COMPOSITE
Goodreid’s balanced approach allows investors to participate in the potential growth of equity holdings while mitigating risk through ownership of quality fixed income instruments.
PERFORMANCE AS OF DECEMBER 31, 2016:
- 1 year: Fund 7.3%, Index* 10.2%
- 3 years: Fund 8.0 %, Index* 5.5%
- 5 years: Fund 10.3%, Index* 7.1%
* Index: Globe Canadian Equity Balanced Peer Index
* Returns are based on reinvested dividends and are net of fees
TOP HOLDINGS AND WEIGHTINGS
- Canadian equities: 34%
- U.S. equities: 37%
- Canadian fixed income: 24%
- Cash: 5%