Investors in preferred shares need diversification

Diversification across credit, structure and sectors will offer protection in times of volatility, says NBI’s Jean Mathieu Gareau

Ruth Saldanha 12 February, 2019 | 6:00PM

After the volatility over the past few months, this year, the S&P/TSX Composite index seems to be headed upwards, gaining close to 10% year-to-date, as against the S&P 500, which up around 5% for the same duration, according to Morningstar Direct data.

Though fears of a recession seem to be past us, many investors believe that growth might likely be slower in 2019.

One of the potential risks that several investors have been watching is that of an interest rate hike, but with the U.S. Federal reserve becoming more dovish, that possibility seems remote, with Morningstar analysts expecting only a single hike in mid-2020.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Brookfield Office Properties Inc15.91 CAD0.70
iA Financial Corp47.89 CAD0.82
Power Financial Corp 5.9 % Non Cum Pfd Shs Series -F25.20 CAD0.80

About Author

Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca

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