Randy LeClair

Economic cycle defines this preferred equity manager's portfolio.

Michael Ryval 4 February, 2011 | 7:00PM

In navigating through the $40-billion universe of Canadian preferred shares, Randy LeClair takes a top-down view.

"We look at where we are in the economic cycle," says LeClair, manager of the $47-million Manulife Preferred Income and chief investment officer at Burlington, Ont.-based Portland Investment Counsel Inc. "There are three stages: tightening, easing and clipping coupons. The worst case for any fixed-income manager, whether he runs bonds or preferred shares, is the tightening phase (when interest rates are rising)."

A 20-year industry veteran, LeClair notes that one year in every five to seven years can be brutal. "It generally lasts about 13 months," he says. "I've experienced four of them and that's the kind you have to watch for."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Michael Ryval

Michael Ryval  Michael Ryval, a regular contributor to Morningstar, is a Toronto-based freelance writer who specializes in business and investing.

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies