CI Signature's CIO favours defensive sectors

Eric Bushell's largest holding in the fund he manages is a gold ETF.

Sonita Horvitch 1 June, 2016 | 5:00PM

Eric Bushell, chief investment officer at Toronto-based Signature Global Asset Management, continues to adopt a defensive approach to the global equity market with an emphasis on companies that have predictable business models and can generate both good revenue growth and solid income. "This tends to lead us to the developed markets and to those companies with a consumer focus and to other more defensive companies such as select utilities."

Bushell is skeptical about the sustainability of the first-quarter surge in natural-resource stocks, commodity prices and other riskier assets. This rally was predicated in part, he says, on the U.S. Federal Reserve Board's decision to hold off raising its policy rate in February, amid concerns about the global economy.

Another driver of this "risk-on" investor sentiment in the first quarter, Bushell says, was that the financial markets incorrectly read China's policy-makers' move to stabilize the economy as a stimulative measure.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc Class C1,456.88 USD1.80 Inc3,108.00 USD4.98
Bank of Nova Scotia54.38 CAD-0.37
Bristol-Myers Squibb Company58.57 USD1.38
Capital One Financial Corp69.53 USD-2.96
Hydro One Ltd27.95 CAD2.46
Newell Brands Inc17.29 USD1.17
Royal Bank of Canada94.26 CAD-0.10
Synchrony Financial25.45 USD-1.74
The Toronto-Dominion Bank60.97 CAD0.28

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Sonita Horvitch

Sonita Horvitch  

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