WILLOUGHBY COMMENTARY INVESTMENT POOL€¦ · portfolio holdings. other. total portfolio solutions. willoughby investment pool – series f q1 report – march 31, 2020. global technology

WILLOUGHBYINVESTMENT POOL

Q1 REPORT – SERIES FMARCH 31, 2020

• COMMENTARY

• ALLOCATION BY ASSET CLASS

• PERFORMANCE HISTORY

• PORTFOLIO HOLDINGS

• TRADING ACTIVITY

COMMENTARY WILLOUGHBY INVESTMENT POOL – SERIES FQ1 REPORT – MARCH 31, 2020

Although markets started the year off strong (up 5%) into the 3rd week in February, they virtually fell off a cliff in March when COVID-19 began to spread outside of China and into the rest of the world. The World Health Organization declared a Global Pandemic and most of the world economies shut down and panic set in. The markets sold off aggressively, with the S&P500 declining 34% and the TSX dropping 37% from their February highs to the lows on March 23rd. Although we started to see a rebound from there, the damage had been done and by the end of the quarter, the S&P 500 was down 19.6% and the TSX Composite fell 21.1%. Even bonds got caught up in the panic selling and declined as much as 14.2% from the highs and finished the quarter down slightly at -.24% as measured by the Canadian Universe Bond Index. Bond yields declined significantly with the Canadian 10-Year bond yield declining from 1.7% to finish at 0.71%. This means that investing into 10 year bonds today will get you less than 1% per year for 10 years. Fortunately, we sold most of our longer term bonds at the end of the summer last year to realize a profit. The majority of the fixed income side of the portfolio has been in short term money market instruments as the risk reward balance of bonds has not been attractive until more recently.

Canadian Dollar and Oil

The Canadian dollar sold off aggressively as oil fell sharply (CAD is still somewhat perceived as an oil currency due to the oilsands) and a flight to safety took place as in-flows went to the USD. This actually helped to buffer the downside in the market as a declining Canadian Dollar helps performance and a rising Canadian Dollar hinders performance. When markets normalize, we expect the CAD to settle back to the $0.75/$0.76 range (currently at $0.70/$0.71). As a result, we have been adding to our currency hedge and have entered positions in currency hedged etfs for some of our US exposure.

Portfolio Results

Over the first quarter, the Willoughby Investment Pool declined by -11.85% (F) and -12.09% (A). This compares to -13.8% for our benchmark.

Final Thoughts and Strategies Moving Forward

The Coronavirus has led to very challenging and difficult times, but we know, based on the experience of other countries that there will be an end date to this pandemic and life will eventually get back to normal. We’ve faced many challenging times in the past and eventually things got back to normal (perhaps a new normal). Markets have always rebounded and gone on to new highs. This time won’t be different.

From a strategy standpoint, we will continue to have a diversified portfolio and own great companies with strong balance sheets and fundamentals. Companies that are in a good position to survive this crisis. We are also adding great companies that are trading at deep discounts where we expect above average returns when things get back to normal. Despite our mid to long term confidence in the market, we continue to maintain a more cautious approach in this environment and are raising cash on market strength (some people refer to it as selling high) and buying on market weakness (often referred to as buying low). Finally, we are paying very close attention to the movement in the Canadian Dollar and are using a variety of hedging strategies to protect the portfolio from a rising Canadian Dollar.

ASSET ALLOCATION & PERFORMANCE HISTORY

PERFORMANCE HISTORY

Fund Yearly Returns

2016 4.84%

2017 8.64%

2018 -7.08%

2019 19.61%

* Fund start date is April 6, 2016

*

ASSET ALLOCATION

Notes: Funds have been allocated in more than one asset class.

WILLOUGHBY INVESTMENT POOL – SERIES FQ1 REPORT – MARCH 31, 2020

$9,500.00 $10,000.00 $10,500.00 $11,000.00 $11,500.00 $12,000.00 $12,500.00 $13,000.00 $13,500.00

American Equity 48.7%

Canadian Equity 22.2%

Cash 17.5%

Other 7.8%

Fixed Income Securities 3.7%

PORTFOLIO HOLDINGS

TOTAL PORTFOLIO SOLUTIONS

CASH & CASH EQUIVALENT

FIXED INCOME


PORTFOLIO HOLDINGS


CANADIAN EQUITIES


PRECIOUS METALS FUND

PORTFOLIO HOLDINGS

AMERICAN EQUITIES


US MID CAP GROWTH FUND

GLOBAL DIVIDEND FUND

PORTFOLIO HOLDINGS

OTHER



GLOBAL TECHNOLOGY INNOVATORS

SCIENCE AND TECHNOLOGY FUNDHEALTH SCIENCES FUND

TRADING ACTIVITY

PURCHASES Average Purchase Price

MASTERCARD INC CL-AAMAZON COM INCCANADIAN PACIFIC RAILUNITED HEALTH GROUP INCAIR CANADA VTG & VAR VTGPARKLAND FUEL CORPNETFLIX INCJP MORGAN CHASE & COHERSHEY COMPANY (THE)BRP INCGLOBAL TECHNOLOGY INNOVATORSSYSCO CORPCI FA CANADIAN REIT ETFISHR CORE CDN UNIV BD ETFCELESTICA INC SVPURPOSE HIGH INT SVGS ETFBROOKFIELD ASSET MGT-A LVISHARES S&PTSX CAP EN ETFZOOM VIDEO COMM INC CL-AISHARES NASDQ 100 IDX ETFCI MAR ALT ABS RET BD ETFBOEING COMPANYGLOBAL TECHNOLOGY INNOVATORSATRIUM MORTGAGE INVT CORPLOBLAW COMPANIES LTDTELUS CORPROYAL BANK OF CANADAGILEAD SCIENCES INCAPPLE INCCONSTELLATION BRANDS CL-ACONSTELLATION SOFTWARENASDAQ INCAUTOMATIC DATA PROC INCKEYSIGHT TECHNOLOGIES INCBOYD GROUP SERVICES INC

304.88 USD1915.72 USD335.00 CAD264.76 USD

29.81 CAD24.98 USD

350.99 USD127.61 USD153.77 USD

24.02 CAD18.83 CAD50.03 USD14.09 CAD32.46 CAD4.68 CAD

50.08 CAD87.00 CAD3.85 CAD

150.00 USD57.42 CAD20.55 CAD

169.59 USD21.68 CAD8.50 CAD

69.73 CAD45.14 CAD89.77 CAD74.67 USD

284.60 USD184.25 USD

1387.67 CAD113.59 USD167.27 USD

96.65 USD0.00 CAD


TRADING ACTIVITY

DISPOSITIONS Average Disposition Price

PREMIUM BRANDS HLDGS CORPALIMENT COUCHE-TARD-B SVDOLLARAMA INCTFI INTERNATIONAL INCALIGN TECH INCALPHABET INC CL-ALULULEMON ATHLETICA INCAIR CANADA VTG & VAR VTGHEALTH SCIENCES FUNDNETFLIX INCJP MORGAN CHASE & COHERSHEY COMPANY (THE)GLOBAL DIVIDEND FUNDBRP INCGLOBAL TECHNOLOGY FUNDLENNAR CORPAMERICAN EXPRESS CONORTHROP GRUMMAN CORPMEDTRONIC PLCACTIVISION BLIZZARD INCBOOKING HOLDINGS INCSYSCO CORPFACEBOOK INC CL-ASCIENCE AND TECHNOLOGY FUNDCBRE GROUP INC-ASTARBUCKS CORPMICROSOFT CORPBADGER DAYLIGHTING LTDISHR CORE CDN UNIV BD ETFISHRS CORE CDN L/T BD ETFCELESTICA INC SVADOBE INCU.S MID-CAP GROWTH FUNDHOME DEPOT INC

84.60 CAD44.00 CAD39.00 CAD29.63 CAD

263.02 USD1430.88 USD212.68 USD

47.19 CAD45.72 CAD

354.11 USD80.21 USD

146.25 USD22.79 CAD62.52 CAD17.04 CAD58.70 USD

113.82 USD346.00 USD119.21 USD

60.07 USD1942.87 USD

65.85 USD174.22 USD

25.00 CAD60.84 USD83.26 USD

169.39 USD34.27 CAD32.70 CAD26.80 CAD6.25 CAD

316.35 USD32.61 CAD

229.58 USD


TRADING ACTIVITY

DISPOSITIONS Average Disposition Price

ENBRIDGE INCPURPOSE HIGH INT SVGS ETFISHARES SP/TSX CP MAT ETFABBVIE INCKIRKLAND LAKE GOLD LTDREGENERON PHARM INCBANK OF AMERICABOYD GROUP INCM FND T/U *HORIZONS ACTV PFD-E ETFISHARES NASDQ 100 IDX ETFFID G/T CL-P3 /NL/NLOBLAW COMPANIES LTDTELUS CORPCONSTELLATION BRANDS CL-AAUTOMATIC DATA PROC INCBOYD GROUP SERVICES INCL3HARRIS TECHNOLOGIES INC

46.90 CAD50.06 CAD13.61 CAD91.43 USD44.64 CAD

480.00 USD31.40 USD0.00 CAD5.85 CAD

60.21 CAD23.54 CAD68.31 CAD21.65 CAD

117.12 USD132.39 USD216.30 CAD203.00 USD


Disclosure: Data as of March 31, 2020

This report doesn’t represent your personal portfolio and it is not meant to replace the investment account statements provided by your financial institution. The underlying holdings and data provided in this report represent those of the Willoughby Investment Pool. Your personal investment account held at your financial institution may include other securities in addition to the Willoughby Investment Pool. For specific information including the amount of units you hold in the Willoughby Investment Pool, your cost base and any income distributions, please refer to your investment account statements or contact your financial advisor.

Commissions, trailing commissions, performance fees, management fees and expenses may be associated with pooled and mutual fund investments. Please read the Willoughby Investment Pool Simplified Prospectus before investing. You can obtain a Simplified Prospectus from Willoughby Asset Management Inc. The Simplified Prospectus for Willoughby Asset Management Inc.’s investment funds does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.

The fund returns are not guaranteed, values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. All returns are presented net of all fees, including the management fee, administration fees and expenses. Your financial institution may charge other fees and expenses. The portfolio return figures represent those of the Willoughby Investment Pool Series F. The management fee may vary from series to series. For further information on different fund pricing options please refer to the Simplified Prospectus.

WILLOUGHBY ASSET MANAGEMENT INC.Royal Centre, 1800-1055 West Georgia Street, PO Box 11118, Vancouver, BC, V6E 3P3Phone (local): 604.558.6822Toll Free: [email protected]

DISCLAIMER WILLOUGHBY INVESTMENT POOL – SERIES FQ1 REPORT – MARCH 31, 2020

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WILLOUGHBY COMMENTARY INVESTMENT POOL€¦ · portfolio holdings. other. total portfolio solutions. willoughby investment pool – series f q1 report – march 31, 2020. global technology