2017 Willoughby Investment Pool – April Commentary Danny Popescu 05/12/2017 706 0 Comments Good day, President Trump’s inability to repeal and replace Obamacare at the end of March led investors to question whether his other pro-growth initiatives could also fail. Many of the stocks that had previously risen as part of the “Trump Rally” (financials, industrials, and energy) retreated once Trump’s healthcare plans didn’t materialize. The growing threats with North Korea, a quarter-point interest rate hike despite an anemic 0.7% first-quarter GDP growth rate as well as uncertainty surrounding the French election, all created a number of headwinds in April. Although any of these items might be viewed negatively by the markets, the TSX was mildly positive in April and the S&P 500 was up just under 1%. Despite the worry and the negative headlines that never seem to end, markets continue to move forward. Offsetting this negative news are positive earnings reports from most of the companies that have recently reported – the key driver to equity markets and portfolio returns. April was a solid month for the portfolio thanks in part to some strong earnings numbers from the likes of Dollarama (a Canadian discount retailer), Packaging Corporation of America, and Canadian Container Manufacturer, CCL Industries…up 19.81%, 8.78%, and 8.4% respectively. Unfortunately, and as is usually the case, not all holdings were positive over the month. Our energy, resource, metals and mining positions declined partly due to concerns over the Trump rally, reduced earning results, and declining energy and commodity prices. Although these positions have declined over the month, we have not sold them as the fundamentals are still strong. We are looking to add to our energy position with the decline in oil prices as we expect they will rebound (perhaps significantly) sometime this year. One position that we did sell at the end of the month was Transforce International (TFII) – a Canadian transportation company as recent earnings disappointed and it dropped below its respective 200 days moving average. The proceeds of the sale were used to purchase additional shares in Manulife Financial. We like Manulife because of its recent positive price momentum (blue line) through the 50-day moving average (orange line), the low forward PE ratio (10.95 – Green) which is below its historical average, as well as positive Earnings Per Share growth estimates. Danny Popecu CFP, CIM, FMA, FCSI President & CEO “I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.” Disclaimer – This information transmitted is intended to provide general guidance on matters of interest for the personal use of the reader who accepts full responsibility for its use and is not to be considered a definitive analysis of the law and factual situation of any particular individual or entity. As such, it should not be used as a substitute for consultation with a professional accounting, tax, legal or other professional advisor. Laws and regulations are continually changing, and their application and impact can vary widely based on the specific facts involved and will vary based on the particular situation of an individual or entity. Prior to making any decision or taking any action, you should consult with a professional advisor. The information is provided with the understanding that Harbourfront Wealth Management is not herein engaged in rendering legal, accounting, tax or other professional advice. While we have made every attempt to ensure the information contained in this document is reliable, Harbourfront Wealth Management is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is,” with no guarantee of completeness, accuracy, timeliness or as to the outcome to be obtained from the use of this information, and is without warranty of any kind, express or implied. The opinions expressed herein do not necessarily reflect those of Harbourfront Wealth Management Inc. The particulars contained herein were obtained from sources we believe to be reliable but are not guaranteed by us and may be incomplete. The opinions expressed are not to be construed as a solicitation or offer to buy or sell any securities mentioned herein. Harbourfront or any of its connected or related parties may act as financial advisor or fiscal agent for certain companies mentioned herein and may receive remuneration for its services. The comments and information pertaining to any investment products (The Portfolios) sponsored by Willoughby Asset Management are not to be construed as a public offering of securities in any jurisdiction of Canada. The offering of units of The Portfolios is made pursuant to the Offering Memorandum or Simplified Prospectus and only to investors in Canadian jurisdictions. Important information about The Portfolios is contained in the Offering Memorandum or Simplified Prospectus available through Willoughby Asset Management. Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with investments in The Portfolios. Investments in The Portfolios are not guaranteed, their values change frequently, and past performance may not be repeated. Historical annual compounded total returns including changes in unit value and reinvestment of all distributions do not take into account sales, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Unit values and investment returns will fluctuate and there is no assurance that The Portfolios can maintain a specific net asset value. Harbourfront Wealth Management Inc. (“Harbourfront”) has relationships with related and /or connected issuers, which may include the securities or funds discussed in this commentary and are disclosed in our Statement of Policies Regarding Related and Connected Issuers. This policy is included in your new client package, on our website, or can be obtained from your investment advisor on request.