The Prosperity Update – October 2019
What You Own and Why You Own It
We recently added two new positions in the Prosperity Fund: Suncor and Canadian Natural Resources. Global demand for energy continues to increase. Both are world class companies with diversified operations. At the time of purchase the shares had come down by about 22 percent since July 2018, and were trading at single digit price/earnings rations. They are currently paying a dividend of approximately 4 percent, which has been growing. In my opinion, both companies have enviable human rights and environmental records, especially when you look at global alternatives to Canadian energy production.
Here is the Third Quarter update on the VPI Canadian Equity Pool, which is about 13.7% of the Prosperity Fund. https://vimeo.com/366397237/8dc2249a8f (watch time 4:08)
Here is the Third Quarter update on the VPI Income Pool, which is about 13.6% of the Prosperity Fund. https://vimeo.com/366395271/764c6062e9 (watch time 3:55)
|Cash and Fixed Income||23.7%|
|Daily Interest Savings||12.1%|
|Vanguard Canadian Aggregate Bond ETF||6.9%|
|Value Partners Income Pool||13.6%|
|Antares Total Equity||13.8%|
|Value Partners Canadian Equity||13.7%|
|Vanguard FTSE Developed All Cap ex North America ETF||13.3%|
|Vanguard US Total Market Return ETF||13.7%|
|Berkshire Hathaway B shares||1.9%|
|Canadian Natural Resources Ltd.||3.1%|
|Suncor Energy Inc.||3.1%|
What Makes the Prosperity Fund Special
The Prosperity Fund is a collection of our best ideas at our best prices, with client friendly convenience.
Did you know that Brad does not receive any compensation for managing the Prosperity Fund? We have purposely structured the Prosperity Fund so that Brad is paid for managing the assets, not on how the assets are invested.
In September Brad attended the Institute of Advanced Financial Planners annual symposium, where he caught a chance to catch up with Alec MacIsaac. Alec is a member of the team of disciplined value investors that manage the Antares Total Equity Strategy, which currently makes up about 13.8% of the Prosperity Fund.
It has been said that the four most dangerous words in investing are, “This time it’s different!” It is funny how people can find new ways to rationalize old behaviours. In this 3 minute video we discuss one of the first recorded speculative bubbles – Tulip Mania!
The benefits of reduced trading costs are just great. Last month we added to the portfolio with some stock purchases. For someone with $100,000 in the Prosperity Fund the trading costs would have been roughly 70 cents on one of these purchases.
Recommendations are Welcome!
If you know of anyone whom we should talk to about the Prosperity Fund, or any other financial matter, please feel free to pass along my name, or direct them to the website, www.bradbrainfinancial.com.
Following a value style of investing, the Prosperity Fund will be a collection of our best ideas, with a Target Asset Allocation of 85% Equities and 15% Cash and Fixed Income.
The Prosperity Fund is appropriate for patient investors looking to grow their money over the long term. It is not appropriate for people looking to speculate, for time frames less than five years, or for people who are not comfortable with market variability. The Prosperity Fund requires a minimum purchase of $50,000.
Aligned Capital Partners Inc. is regulated by the Investment Industry Regulatory Organization of Canada (www.iiroc.ca) and a Member of the Canadian Investor Protection Fund (www.cipf.ca).
Please contact Brad brain or visit http://bradbrainfinancial.com/investments-acpi/our-investments/ for additional information about the Prosperity Fund. Important information is contained in the offering memorandum and should be read carefully before investing. The offering memorandum can be found here http://bradbrainfinancial.com/investments-acpi/wp-content/uploads/sites/2/2019/06/05.21.2019_Prosperity_Fund_OM_FINAL.pdf