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
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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 Inc64.28 CAD-0.72Rating
Canadian National Railway Co147.83 CAD0.87Rating
Canadian Natural Resources Ltd45.57 CAD2.15
Canadian Pacific Railway Ltd84.44 CAD1.38Rating
Cenovus Energy Inc12.71 CAD4.83
Enbridge Inc51.17 CAD0.89Rating
Great-West Lifeco Inc38.71 CAD0.62Rating
Kinder Morgan Inc Class P17.03 USD2.99Rating
Manulife Financial Corp24.76 CAD1.35Rating
Suncor Energy Inc26.65 CAD4.14
TC Energy Corp64.10 CAD1.94Rating
Union Pacific Corp205.46 USD0.82Rating

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Sonita Horvitch

Sonita Horvitch  

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