David Cockfield, Managing Director and Portfolio Manager, Northland Wealth Management

FOCUS: Canadian Equities & ETFs

_______________________________________________________________

MARKET OUTLOOK:

Financial markets have shown surprising resilience in the face of Brexit and the nasty presidential campaign in the U.S. Both U.S. and Canadian equity markets have risen with only a few setbacks since January of this year. This is happening in spite of large amounts of cash staying on the sidelines and bearish sentiment remaining high. With economic growth accelerating in the U.S. it will take some major negative political or economic event to derail this upward equity market momentum.

Top Picks:

Inter Pipeline (IPL.TO)

This is a Calgary-based pipeline that transports and stores oil and natural gas liquids. The company operates 7,200 kilometres of pipelines and 4.8 million barrels of storage in Western Canada. The company also operates three natural gas extraction facilities that can process 6.2 billion cubic feet daily of natural gas to produce 200,000 barrels of natural gas liquids. IPL has long term service agreements with major high quality producers which give it utility characteristics with growth potential plus an attractive yield of 5.70%. The recent acquisition of Williams Canada is accretive. Last purchased in August @ $27.16.

BMO MSCI Europe High Quality Hedged to CAD Index ETF (ZEQ.TO)

This ETF attempts to replicate the performance of MSCI Europe High Quality – 100 per cent hedged to CAD Index. The main geographic allocations are – U.K. – 43.9 per cent, Switzerland – 19.4 per cent and Germany – 9.4 per cent.The main sector concentrations are Consumer Staples – 31.3 per cent, Health Care – 20.1 per cent, Industrials – 16.0 per cent and Consumer Discretionary – 15.0 per cent. The ETF offers good diversification in high quality European multinationals in safe countries and good sectors.

While Brexit caused brief market declines, the fall in the U.K. pound has caused a quick recovery in U.K. equities. With a reasonable management fee of 0.46 per cent, the ETF offers good exposure to European markets. Last purchased in Aug. @$18.10.

iShares S&P North American Technology Sector Index Fund ETF (IGM)

This ETF tracks U.S. technology equities as represented by the S&P North American Technology Sector Index. The top five holdings are – Microsoft, Apple Inc., Amazon, Facebook Class A and Alphabet Class A & C. The Tech sector should perform well as U.S. economic growth accelerates. This ETF offers good diversification into the U.S. Tech sector at a reasonable cost of  .47%. Last purchased in Aug @ $27.16.

Past Picks:  July 31, 2015

Sun Life Financial (SLF.TO)

• Then: $42.69
• Now: $41.67
• Return: -2.39%
• TR: +1.29%

BMO Low Volatility U.S. Equity ETF (ZLU.TO)

• Then: $27.10
• Now: $30.77
• Return: +13.54%
• TR: +15.75%

TD Bank (TD.TO)

• Then: $52.77
• Now: $57.17
• Return: +8.34%
• TR: +12.70%

Total Return Average: +9.91%

Company Twitter - @northlandwealth

Company Website – www.northlandwealth.com