Have you increased your domestic exposure?

Given Canada's improving economic outlook, are advisors starting to refocus clients' portfolios closer to home?

Have you increased your domestic exposure?
Elie Nour
Senior investment advisor
Nour Private Wealth
Manulife Securities

“We have maintained our exposure to Canadian equities in our portfolios at this point because our bottom-up analysis does not dictate any increase. We expect the above-average growth we witnessed during the first half of 2017 to moderate due to tighter financial conditions (two rate hikes from the BoC), the appreciation of the Canadian dollar, NAFTA policy uncertainty, rising minimum wages and tax changes.

Our Canadian exposure is focused on names that have international operations. Overall, we are holding slightly more cash to deploy if there is a pullback.”

Michelle Apollinaro
Financial advisor
B & A Financial Group

“Over the last couple of years, we have been diversifying clients’ portfolios outside of Canada, but Canada appears to be on an upswing with the announced economic numbers.

The recent run-up in the US market versus the underperformance of the Canadian stock market presents opportunities for clients’ portfolios. There appears to be value in the commodity and service sectors of the economy.

With the NAFTA negotiations in the background, we have been slowly increasing our allocation to Canadian holdings in our portfolio mix.”

Mark Winson
Wise Riddell Financial Group

“As an advisor, I am constantly conflicted between logic and the threats and opportunities in the market. When we see the Canadian economy growing at over 4% and appearing to be able to withstand higher central bank rates, it is very perplexing as to why our market has been lagging behind other G7 markets.

But perhaps therein lies the opportunity – so yes, we have increased our Canadian exposure. It has been primarily in the non-energy, non- commodity sectors. We have moved capital in the direction of financials and protecting the downside with options/notes.”