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
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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 C2,886.01 USD-0.62Rating Inc3,472.86 USD-0.08Rating
Bank of Nova Scotia78.37 CAD0.04Rating
Bristol-Myers Squibb Company60.77 USD-1.98Rating
Capital One Financial Corp160.41 USD0.94Rating
Hydro One Ltd31.11 CAD-0.58Rating
Newell Brands Inc25.30 USD-0.06
Royal Bank of Canada129.27 CAD-0.22Rating
Synchrony Financial48.93 USD1.43Rating
The Toronto-Dominion Bank82.53 CAD0.04Rating

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Sonita Horvitch

Sonita Horvitch  

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