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Anthony Layton MBA, CIM

Chairman & CEO, Portfolio Manager

Peter Guay MBA, CFA

Portfolio Manager
Contact
  • T514.875.7566 x 224
  • 1.800.875.7566
  • F514.875.9611
  • Place Alexis Nihon
  • 3400 de Maisonneuve Ouest,
    Suite 1501
  • Montreal, Quebec H3Z 3B8

Staying the Course

August 29, 2008 - 1 comment

I have written numerous times about the benefits of 'staying the course' or keeping your money invested during uncertain times.

In this note, I’d like to tell you about some of the pay-offs that PWL clients' portfolios have experienced in the last year, resulting from PWL’s good management. Below are examples...

 
Asset Class Strategies

1)   Canadian equity - we felt it was over-valued for the last 18 months; have taken 2 rounds of profits, and placed the money in cheaper asset classes (e.g. trust units and US equity)

2)   Canadian REITS – we sold all holdings for profit a year ago – since then the asset class has corrected significantly and we are now reinvesting in Canada and globally

3)   US equity large cap – having been underweighted for 18 months, we added to our positions 3 months ago and are benefiting from recent market improvements

4)   US equity small cap – we maintained remained underweight for 3 years as the class slowly corrected – we are now investing to equal weight.

5)   International equity – a large part of your equity is outside North America, which did very well for the 4 years prior to 2007. We remain on target weight.

 
Currency Strategies

6)   US Dollar – our 50% hedge reduced the loss in previous years, from November to February 2008 we removed the hedge completely – our US holdings have gained 7% from the recent drop in the Loonie

7)   EAFE currencies – we moved to increase our hedge to 40% in May 2008, protecting a gain from a rapid increase in the EURO.

 

By managing currencies (which most managers do not) and by avoiding the temptation of investing high yield asset backed commercial paper (ABCP) in client portfolios, our June 30 performance compares very favorably to our competitors.

I believe we have built strong portfolios and look forward to the markets ahead. Please give me a call or contact me to discuss any of this.

By: Anthony Layton & Peter Guay with 1 comments.
Comments
  20/10/2008 3:24:06 PM
Brenda
This is an excellent and informative message. You really earn your keep.
 



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