Andy Nasr, Vice President and Investment Strategist, Sentry Investments
Focus: REITs, global equities and macro strategy
Concerns regarding debt, deflation, demographics and diplomacy have all contributed to volatility, which underscores the importance of diversification and active portfolio management. We continue to leverage our ‘house style’, which has produced excellent long-term risk-adjusted returns, to find compelling equity and fixed-income investments in various geographies. While U.S. equities may appear expensive, corporate profits should improve and the S&P 500 is trading at a multiple that is consistent with low interest rates and benign inflation. Outsized capital appreciation potential exists beyond North America due to a combination of multiple expansions and an improvement in cyclically-depressed corporate earnings in regions such as Europe.
Boardwalk REIT (BEI_u.TO)
This REIT is one of the largest owners of multi-residential real estate in Canada. We believe that concerns regarding slower growth in Alberta and Saskatchewan, which collectively account for more than 80 per cent of the REIT’s net operating income, are fully reflected in the valuation.
The company is a large health insurance provider in the United States. While we don’t expect the proposed acquisition by Anthem to receive regulatory approval, we believe that Cigna’s free cash flow growth will continue to be supported by increased healthcare utilization and favorable demographic trends.
Nestle is a well-diversified multi-national packaged foods company. Corporate profit and free cash flow growth should improve due to a renewed focus on cost control and capital allocation.
Past Picks: September 8, 2015
Bank of America (BAC.N)
- Then: $16.16
- Now: $15.60
- Return: -3.47%
- TR: -2.05%
- Then: $43.89
- Now: $56.81
- Return: +29.44%
- TR: +33.00%
- Then: $165.67
- Now: $160.44
- Return: -3.16%
- TR: -0.90%
Total Return Average: +10.02%
Fund Profile: Sentry Small/Mid Cap Income Fund – Class F
Performance as of September 19, 2016:
- 1 month: Fund 2.5%, Index* -0.8%
- 1 year: Fund 9.3%, Index* 11.8%
- 3 year: Fund 13.9%, Index* 6.5%
* Index: S&P/TSX Composite Total Return
* Identify if your fund’s returns are based on reinvested dividends. Returns provided must be net of fees!
- Cinemark Holdings – 4.1%
- Chemtrade Logistics – 3.7%
- Zimmer Biomet – 3.7%
- Crow Holdings – 3.4%
- Live Nation – 3.4%