Economic growth is back on track, TD manager says

Michael O'Brien adds to his holdings in railways, energy.

Sonita Horvitch 15 March, 2017 | 5:00PM

Michael O'Brien, managing director and head of the core Canadian equity team at TD Asset Management Inc., is tilting his big-cap Canadian equity portfolio toward those sectors and companies which tend to do better in a stronger global economic environment.

"The industrials, notably the rails, and energy companies stand to gain from the current reflationary climate," he says. Then, the financial-services sector, the banks and insurers, do well when interest rates bottom and start to rise gradually. "I think that we are finally at this inflection point in interest rates, after a number of false starts."

O'Brien reports that he has been adding to his weightings in the railways, energy and the insurers. "We have also kept our overweight position in the Canadian banks," he says. "They represented significant value at the beginning of 2016, but this is less the case now."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BCE Inc55.15 CAD0.57
Canadian National Railway Co121.88 CAD0.90
Canadian Natural Resources Ltd22.91 CAD4.04
Canadian Pacific Railway Ltd351.08 CAD0.99
Cenovus Energy Inc5.99 CAD1.70
Enbridge Inc40.15 CAD-0.12
Great-West Lifeco Inc23.90 CAD2.66
Kinder Morgan Inc Class P14.24 USD2.37
Manulife Financial Corp18.34 CAD2.29
Power Financial Corp  
Suncor Energy Inc21.95 CAD2.67
TC Energy Corp56.83 CAD1.59
Union Pacific Corp166.39 USD0.24

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Sonita Horvitch

Sonita Horvitch  

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