WHAT DOES YOUR ADVISOR INVEST IN?

I think it would be instructive – and transparent – to show what I personally invest in. While I might have a higher risk tolerances than most of my clients I have found keeping my portfolio relatively simple and conservative serves my best interest. Very much like a shoe-cobbler’s son I tend to ignore my personal account so I shouldn’t make it too high-maintenance.


Here is how my portfolio looks like as of now (May 2018).

1. FIXED INCOME (48.4% of my Portfolio)

ACM Commercial Mortgage, Firm Capital Mortgage and First National Mortgage
WHY?: I love mortgage income units for their higher than average income and stability and non-correlation to stocks. ACM especially provides monthly liquidity along with clear valuation.

Pacific Western Bank 7% Preferred Share
WHY?: What part of 7% don’t you understand? Seriously, the income is good and if the bank’s fortunes improve there is an opportunity, (but no guarantee), to be paid out early. There is also a feature in place that slightly safeguards against the threat of future higher interest rates, although this would not be perfect, by ensuring that in 5 years time the payout rate would rise if interest rates were higher then.


2. EQUITY INCOME (29.9% of my Portfolio)

Dynamic Premium Yield
WHY?: Very good managers that use a variety of Put and Call Options to create a high level of income against large, well-known U.S. companies.

EdgePoint Global Growth & Income
WHY?: For my global exposure I use a value manager whose motto is to outperform the markets over 10 years. They buy businesses and fixed income securities that they feel can patiently grow over the long-term. But they will not hesitate to trim holdings that have gone up too far or if they find better investments elsewhere. Very strict valuation philosophy employed.

Innergex Renewable Energy
WHY?: Think of this as a utility company using renewable energy – solar, wind and small-scale hydro power – to generate energy and sell it for long-term contracts.

Pro Real Estate Income Trust
WHY?: This is a bit more of a risk, but it is a smaller real estate income company that holds and leases land to large companies in the Eastern Canada area from supermarkets, retail companies and governments.


3. EQUITIES (21.7% of my Portfolio)

Aixtron
WHY?: Got excited about Graphene a new “wonder” technology that could be a super conductor and storage of energy. I invested a little and that little cut promptly cut in half. Completely risky and completely prepared to lose everything here in hopes of potential long-term returns.

National Bank (5th largest bank with best dividend)
Blackstone Group LP (large private investment company with substantial real estate holdings)
Hannon Armstrong (a financial company that lends/invests in renewable energy companies)
WHY?: All pay a decent dividend income and I have written Calls against my shares which caps my upside – although I will still make some return – but the Call income I generate is pretty generous, especially on Blackstone Group, which is a large investment company.

Markel Corp. Holdings
WHY?: This is a U.S. holding company that is run in the same style as Warren Buffet’s Berkshire Hathaway, but is smaller, not as well known and has had returns that have beaten Buffet’s company, which is very tough to do.

Netflix
WHY?:  I bought this after the last bad earnings report when the price crashed. And then wrote a rich premium to generate more income. And then the stock went down some more….but in a little while I get to write a new Call and make more money on it. And I still believe in Netflix!

Bottom-Line: I eat my own cooking! Almost all of my holdings (ex-Aixtron) create a large dividend income and I supplement that income flow by writing Calls on some of  my stocks. I might lose some upside in doing so in the short-run, but I love getting paid and it stabilizes my portfolio.