Balanced Portfolio: Investment Descriptions

Updated: February 2017

Below is a list of the individual investments held in the Sample Balanced Investment Portfolio with a brief, general description of the investment’s features, the investment’s job within the context of the portfolio, and a brief summary of the issuing/managing company.

Fixed Income

The sample portfolio is made up of the following Fixed Income investments of bonds and Guaranteed Investment Certificates (GICs): 

  • Bank of Nova Scotia Bond, 4.10%, matures on 08-June-2017: Issued by the bank, this bond has a credit rating of “AA(low)” (July 2016) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of June 8 and the second payment is received on December 8. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $4.10 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • TMX Group Limited Bond, 3.253%, matures on 03-October-2018: Issued by the TMX Group, which owns and operates Canada's major equity, fixed income and energy markets. This bond has a DBRS credit rating of A(high) (August 2016) and the bond pays its annual interest in two equal, semi-annual, payments (October/April). The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the issuer will pay the holder $3.253 for every $100.00 of par value, every year. The CDIC does not cover this type of bond.
  • Province of Nova Scotia Bond, 4.15%, matures on 25-November-2019: Issued by the province of Nova Scotia, it is supported by the province’s credit rating which at the time of purchase stood at “AA(low)” ("A(high)" as at September 2016). The bond pays its annual interest income in two equal instalments. Each year, one payment is received on the bond’s annual anniversary date of November 25 and the second payment is received on April 25. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the province will pay the holder $4.15 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • Bell Canada Bond, 3.25%, matures on 17-June-2020: Issued by Bell Canada, Canada's largest communications company, this bond has a credit rating of “BBB(high)” (as at August 2016)) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of June 17 and the second payment is received on December 17. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $3.25 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • Bell Canada Bond, 2.00%, matures on 01-October-2021: Issued by Bell Canada, Canada's largest communications company, this bond has a credit rating of “BBB(high)” (as at August 2016) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of October 1st and the second payment is received on April 1st. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $2.00 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • Empire Life Insurance Bond, 2.87%, matures on 31-May-2023: Issued by Empire Life, with total assets under management of $15.3 billion, one of Canada's largest life insurance companies. Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products to Canadians. This bond has a credit rating of “A(low)” (as at May 2016) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of May 31st and the second payment is received on November 30th. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the company will pay the holder $2.87 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC.
  • Telus Corporation Bond, 3.35%, matures on 01-April-2024: Issued by Telus, one of Canada's largest and fastest growing telecommunications companies. This bond has a credit rating of “BBB(high)” (as at November 2015) and pays its annual interest income in two equal instalments. Each year, one payment is received on the annual anniversary date of April 1st and the second payment is received on October 1st. The bond can be sold in the secondary bond market at any time prior to its maturity date. Regardless of the price paid to purchase the bond, the bank will pay the holder $3.35 for every $100.00 of par value, every year. This type of bond is not covered by the CDIC. 

Preferred shares

The sample balanced portfolio has invested in the following preferred shares: 

(IGM.PR.B-TSX), DBRS Credit Rating = Pfd-2(High) - Stable Trend

IGM Financial Inc. is one of Canada's largest personal financial services companies, and one of the country's largest managers and distributors of mutual funds and other managed asset products, with over $120 billion in total assets under management. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

    • Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating to name a few.
    • (DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

(WN.PR.D-TSX), DBRS Credit Rating = Pfd-3 - Stable Trend

Often called Weston's or simply Weston, is a Canadian food processing and distribution company, and one of Canada's most recognizable companies. George Weston Limited is a Canadian public company, founded in 1882. The company has two reportable operating segments: Loblaw Companies Limited and Weston Foods. The Loblaw operating segment, which is operated by Loblaw Companies Limited and its subsidiaries (President’s Choice and Joe Fresh Brands, PC Financial, Real Canadian Superstores, etc.), is Canada’s largest food distributor and a leading provider of general merchandise, drugstore, and financial products and services. Loblaws employs more than 138,000 people making it one of Canada’s largest private employers. The Weston Foods operating segment is a leading fresh and frozen baking company in Canada and is engaged in frozen baking and biscuit manufacturing in the United States.

    • Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

(CU.PR.G -TSX), DBRS Credit Rating = Pfd-2(high) - Stable Trend

Canadian Utilities Limited, an ATCO company, with more than 6,800 employees and assets of approximately $16 billion, delivers service excellence and innovative business solutions worldwide with leading companies engaged in Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation and sales, natural gas gathering, processing, storage and liquids extraction) and Structures & Logistics (manufacturing, logistics and noise abatement).

    • Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating to name a few.
    • (DRIP)- The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

(POW.PR.G-TSX), DBRS Credit Rating = Pfd-2 - Stable Trend

Power Corporation is a diversified international management and holding company that holds interests, directly or indirectly, in companies that are active in the financial services, communications and other business sectors. Power’s principal asset is its controlling interest in Power Financial Corporation, which owns controlling interests in Great-West Lifeco and IGM Financial. Through Great-West Lifeco, Power Corp. holds significant ownership interests in London Life, Canada Life, Putnam Investments and their subsidiaries. Through IGM Financial, Power Corp. holds significant ownership interests in Investors Group, Mackenzie Financial Corp and Investment Planning Council Inc.

    • Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating to name a few. 
    • (DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

(W.PR.M-TSX), DBRS Credit Rating = Pfd-2(low) - Stable Trend

Westcoast Energy Inc. operates as a subsidiary of Spectra Energy Corp. Westcoast Energy Inc. operates as an integrated natural gas and natural gas liquids (NGLs) company in Canada. The company is involved in gathering, processing, transmission, storage, and distribution activities. Its Transmission & Processing segment transports processed natural gas from facilities primarily in northeastern British Columbia (BC) to markets in BC, Alberta, and the United States Pacific Northwest. It has approximately 2,800 kilometers of transmission pipelines in BC and Alberta, as well as associated mainline compressor stations.

    • Influences: The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, the current credit cycle, and the company’s credit rating to name a few.
    • (DRIP)-The company does not offer a Dividend Reinvestment Plan for the preferred shares.

 

Growth Investments

 The sample balanced portfolio has invested in the following growth or stock-market oriented investments: 

 Common shares:

  • Bank of Montreal: (BMO-TSX) is the fourth largest bank in Canada by deposits. The Bank of Montreal was founded in 1817 in Montreal, making it Canada's oldest bank. In Canada, the bank operates as BMO Bank of Montreal and has more than 1,600 branches, serving over 12 million customers. The company also has substantial operations in the Chicago area and elsewhere in the United States, where it operates as Harris Bank and as BMO Harris. BMO Capital Markets is BMO's investment and corporate banking division, while the wealth management division is branded as BMO Nesbitt Burns. The company is ranked at number 189 on the Forbes Global 2000 list.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s business within the Financial Services industry increases in value. As the bank’s revenue and profits grow through the bank’s business in retail, corporate and commercial banking operations, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of February, May, August and November. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • Power Financial Corp: (PWF-TSX) is a diversified management and holding company that has interests, directly or indirectly, in companies that are active in the financial services sector in Canada, the United States and Europe. These include interests in Great-West Life Assurance, London Life Insurance, Canada Life Assurance, IGM Financial (also known as Investors Group), Mackenzie Financial and Putnam Investments. It also holds a 50% interest in Pargesa Holdings S.A., a diversified industrial group based in Europe. Power Corporation of Canada owns and controls approximately 66.3% of Power Financial Corporation.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s business within the group and individual insurance and mutual fund businesses increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of May, August, October and February. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, and financial regulations, to name a few.
    • (DRIP) -The company does not offer a Dividend Reinvestment Plan.
  • Great-West Lifeco Inc: (GWO-TSX) Great-West Life was founded in 1891 in Winnipeg. Great-West Lifeco also owns Putnam Investments, London Life Insurance Company, The Canada Life Assurance Company, and The Great-West Life & Annuity Insurance Company and is the largest insurance provider in Canada. The majority owner of Great-West Lifeco is the Power Corporation of Canada which administers Great-West through the Power Financial Corporation. Great-West Life sold its health insurance USA division to Cigna for $1.5 billion US in a deal announced Nov. 26, 2007. At December 31, 2011, the company had $502 billion in assets under administration.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s business within the group and individual insurance and its U.S. mutual fund businesses increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of March, June, September, and December. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, and financial regulations, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • TransCanada Corp: (TRP-TSX) is a major North American energy company based in Calgary, Alberta, developing and operating energy infrastructure in North America. Its pipeline network includes approximately 59,000 kilometers (36,500 miles) of pipeline connecting virtually all of the major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with approximately 355 billion cubic feet  of storage capacity. TransCanada also owns, or has interests in, approximately 10,500 megawatts of power generation. TransCanada is the largest shareholder in the general partner involved in TC Pipelines. The company was founded in 1951 in Calgary.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s businesses within the pipeline and energy sectors increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of January, April, July and October. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the commodity pricing cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • Enbridge Inc: (ENB-TSX) is a Calgary, Alberta based company focused on three core businesses: crude oil and liquids pipelines, natural gas transportation and distribution, and green energy. The company has approximately 6,000 employees, mostly in Canada and the United States. The company was initially incorporated as Inter-provincial Pipe Line (IPL) in 1949, shortly after Canada's first major oil discovery at Leduc, Alberta. The original pipeline was constructed to transport oil from western Canada to refineries in the east. IPL became Enbridge Pipelines in 1998. The Enbridge name is a portmanteau from energy and bridge. In 2010, Enbridge was recognized as one of the Global 100 Most Sustainable Corporations in the world.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s business within the pipeline and energy sectors increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of March, June, September, and December. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the commodity pricing cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • TransAlta Renewables Inc: (RNW-TSX) was created in August 2013 and is 64% owned by Trans Alta Corp. TransAlta Renewables Inc. is Canada's largest producer of wind power - generating 1,248 megawatts (MW) with wind, 112 MW with hydro and 1,081 MW by natural gas. The company owns and operates 18 wind facilities, 13 hydroelectric facilities, 8 natural gas generation facilities and one natural gas pipeline. It operates these facilities in Canada, the United States and Western Australia.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s businesses in the power generation businesses increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends monthly. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the commodity pricing cycle, to name a few.
    • (DRIP) - The dividends are eligible for re-investment in additional common shares.
  • BCE Inc: (BCE-TSX) Also known as Bell Canada Enterprises, BCE is Canada's largest communications company, providing comprehensive and innovative suites of communication services to over 20 million residential and business customers in Canada. Operating under the Bell brand, the company's services include Bell Home Phone local and long distance services, Bell Mobility and Solo Mobile wireless, high-speed Bell Internet, Bell TV direct-to-home satellite and VDSL television, IP-broadband services and information and communications technology (ICT) services. As Canada’s largest Internet provider, BCE generates approximately 17% of its revenues from this area. This compares with 40% of its revenues generated from TV Services, 33.0% from Voice Line Telephone Services and 10% from Long Distance Telephone Services. BCE ranks number 224 on the Forbes Global 2000 list. Bell announced, in September 2010, a deal to reacquire full control of the CTV Television Network, expanding once again into creating content to be delivered via broadcast, cable, satellite, wireless, and the Internet.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s telecommunications, broadcasting and Internet businesses increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of January, April, June, and October. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government and CRTC regulations, and the current credit cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • Shaw Communications Inc: (SJR.B-TSX) is a Canadian communications company that provides telephone, Internet and television services. Shaw is headquartered in Calgary, Alberta. It provides services mostly in British Columbia and Alberta, with smaller systems in Saskatchewan, Manitoba, northwestern Ontario and Hamilton, Ontario. Shaw was founded as Capital Cable Television Co. Ltd. in Edmonton, Alberta, in 1966. The company changed its name to Shaw Cable systems Ltd. and went public on the TSX in 1983. The company grew during the 1980s and 1990s through acquisitions of firms including Classicomm in the Toronto area, Access Communications in Nova Scotia, Fundy Cable in New Brunswick, Trillium Cable in Ontario, Telecable in Saskatchewan, and Videon Cable systems of Winnipeg, which had itself previously acquired Vidéotron's assets in Alberta. However, two swaps, in 1994 and 2001, with Rogers Cable have resulted in its assets being restricted to western Canada and a few areas of northern Ontario./In July 2009, Shaw announced the acquisition of Mountain Cablevision in Hamilton, Ontario, ending a ten-year-old non-competition agreement with rival Rogers Cable. The acquisition was Shaw's first cable property east of Sault Ste. Marie since the 2001 swaps with Rogers and Cogeco./In February 2010, Shaw announced an agreement with Canwest, whereby Shaw will buy an 80% voting interest, and 20% equity interest, in the restructured entity of Canwest, pending approvals from the CRTC and others. Canwest's newspapers are not part of the Shaw deal and will be sold separately.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s telecommunications, broadcasting and Internet businesses increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Non-voting common shares, which pay dividends monthly. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government and CRTC regulations, and the current credit cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • George Weston Limited: (WN-TSX) often called Weston's or simply Weston, is a Canadian food processing and distribution company, and one of Canada's most recognizable companies. George Weston Limited is a Canadian public company, founded in 1882, engaged in food processing and distribution. The company has two reportable operating segments: Loblaw Companies Limited and Weston Foods. The Loblaw operating segment, which is operated by Loblaw Companies Limited and its subsidiaries (President’s Choice and Joe Fresh Brands, PC Financial, Real Canadian Superstores, etc.), is Canada’s largest food distributor and a leading provider of general merchandise, drugstore, and financial products and services. Loblaws employs more than 138,000 people making it one of Canada’s largest private employers. The Weston Foods operating segment is a leading fresh and frozen baking company in Canada and is engaged in frozen baking and biscuit manufacturing in the United States.\The company was founded on building strong vertical integration. For example, the Weston grocery stores sold the bread they manufactured which contained the sugar that was refined at their own sugar refineries.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation. The shares give the portfolio an opportunity to increase in value as and when the company’s businesses within the consumer staples businesses increase in value. As the company’s revenue and profits grow, the market price for the shares should benefit.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of January, April, July, and October. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP) -The company does not offer a Dividend Reinvestment Plan.
  • General Electric Company: (GE-US) Is a global digital industrial company transforming industry with software-defined machines and solutions that are connected, responsive, and predictive. Products and services range from aircraft engines to power generation to oil/gas equipment to medical imaging, etc. The company competes in 180 countries and employs 330,000 employees worldwide. In 2015, approximately 55% of the company’s sales came from international sources.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation from exposure to the industrial sector worldwide. In addition, GE will give the portfolio exposure to the benefits generated by 3-D printing evolution. By 2020, GE expects to manufacture over 500 individual products via 3-D printing.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of March, June, September and December. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • Procter & Gamble: (PG-US) has over 105,000 employees in 180 countries around the world. PG manufactures and distributes consumer goods in 5 main areas – Hair & Personal Care, Grooming, HealthCare, Fabric & Home Care and Baby & Feminine & Family Care. In 2016, international sales accounted for approximately 59% of the company’s total sales.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation from increased exposure to the international consumer goods sector worldwide.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of March, June, September and December. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • Johnson & Johnson: (JNJ-US) is involved in the research, development, manufacturing and sale of a broad range of healthcare products. JNJ has 3 main business platforms – Consumer (baby care, skin care, oral care, wound care, etc.), Pharmaceutical (anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal,, etc.) and Medical Devices & Diagnostics (electrophysiology, circulatory disease management, orthopaedic joint reconstruction, etc.). The company has over 127,100 employees worldwide.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation from increased exposure to the international healthcare sector worldwide.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of March, June, September and December. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP) -The dividends are eligible for re-investment in additional common shares.
  • Open Text Corp.: (OTEX) Founded in 1991, the company is a leader in Enterprise Information Management (EIM). The company’s EIM products and services enable businesses to grow faster, lower their operating costs and reduce information governance and security risks. The company’s customers operate in 11 industries – Energy, Engineering/Construction, Financial Services, Insurance, Healthcare, Legal, Life Sciences, Manufacturing, Media/Entertainment, Public Sector and Utilities. The company employs over 10,000 employees.
    • Job Description: The common shares are owned to provide the portfolio with a steady annual dividend income stream and to provide capital appreciation from increased exposure to the technology sector worldwide and, specifically, give the portfolio an investment in the growth of Cloud computing worldwide.
    • Investment Features: Voting common shares, which pay dividends quarterly in the months of March, June, September and December. The share’s market price can be influenced by the current economic, business and stock market cycles, interest rate environment, government regulations, and the current credit cycle, to name a few.
    • (DRIP) –Open Text does not currently offer a dividend reinvestment plan for shareholders.
Back To Top