You’ve unlocked some of your capital, so what do you do with the windfall? Six of the top money managers across Canada reveal where they would invest your $10 million.
Extremely high-quality long-duration multinational corporate bonds (i.e., Microsoft, Proctor & Gamble and Johnson & Johnson) and long-short strategies, [which involves buying stocks hoping they will increase in value, and borrowing other shares and selling them in the hopes the price will drop and you buy them back for less] to manage the volatility. –Margaret Franklin, President and CEO, Kinsale Private Wealth, Toronto
A portfolio of corporate bonds (for revenue) and large cap stocks for dividends. Growth areas include public utilities, such as wireless providers and cable companies, and oil and gas transporters. –Denis Durand, Senior Partner, Jarislowsky Fraser Limited, Montreal
From a risk vs. reward point of view, one of the best long-term investments will be in the area of infrastructure equity or infrastructure bonds (i.e., roads and buildings). Another asset that will be beneficial in the long run is simple hedge funds. Specifically, a long-short strategy will have good potential over the next 10 years because it is a matter of benefiting from inefficiencies in the market. –Francois Bourdon, Associate Chief Investment Officer, Fiera Sceptre, Montreal
Two themes for a balanced portfolio stand out: technology (we’ve tapped labour market productivity improvements) and infrastructure, which is not new but is often overlooked. The proliferation of technology is also benefiting some old economy names (i.e. Alstrom is benefiting from smart grids—digital electricity networks—and Rogers from smartphones.) –Elizabeth Hamilton-Keen, Director and Senior Portfolio Manager, Mawer Investment Management, Calgary
The textbook answer is stocks in the long run are the best performing asset class. From my perspective, an asset class that makes a lot of sense in the long run and is overlooked is high-yield bonds or junk bonds.–Constantine Lycos, President Lycos Asset Management Inc., Vancouver
A diversified portfolio of quality stocks but avoid picking just one sector. The attractiveness of individual sectors and geographic regions will change over time. Emphasis within an investment portfolio should change to best capitalise on global economic cycles.–Mark Williams, Vice-president & Head, Aboriginal Services Group, Phillips, Hager & North, Calgary
This article was originally published on capitalmagazine.ca.