Top 4 Signature Trades
The Signature Select Canadian Fund (Trades, Portfolio), part of Canadian firm CI Investments, revealed this week that its top four trades in the six months ending March 2021 included new purchases in Galaxy Digital Holdings Ltd. (TSX: GLXY, financial), Royal Bank of Canada (TSX: RY, financial) and CI Global Financial Sector ETF (TSX: FSF.TO, financial) and the closing of its participation in the SPDR Gold Shares ETF (GLD, Financial).
The fund seeks to achieve long-term capital appreciation by investing in Canadian companies that offer the potential for dividend income. The Signature approach makes investment decisions based on an analysis of a company’s complete capital structure, which includes examining qualitative characteristics such as management and financial reporting.
The fund releases its portfolios every six months, at the end of March and at the end of September. As of March 2021, the fund’s $ 757 million equity portfolio contains 105 stocks, with 12 new positions and half-year revenue of 16%. The top four sectors in terms of weightings are Financials, Technology, Industrials and Energy, with weights of 30.29%, 14.46%, 9.16% and 9.07%, respectively.
Galaxy digital backgrounds
The fund bought 841,262 shares of Galaxy Digital Holdings (TSX: GLXY, Financial), giving the position a weight of 2.84% in the equity portfolio. Shares averaged 10.67 Canadian dollars ($ 8.65) during the first quarter of 2021.
According to GuruFocus, the return on equity of the New York-based diversified financial services and investment management firm outperforms more than 95% of its global competitors.
Royal Bank of Canada
The fund bought 131,776 shares of Royal Bank of Canada (TSX: RY, Financial), giving the position a weight of 2.02% in the equity portfolio. Shares averaged C $ 105.48 ($ 85.15) during the first quarter; the stock is slightly overvalued based on Tuesday’s GF price / value ratio of 1.11.
GuruFocus ranks the financial strength of the Montreal bank 4th out of 10. Although the cash-to-debt and debt-to-equity ratios exceed those of its global competitors by more than 85%, the ratio of equity to assets of the Royal Bank of Canada is over 83% of the world’s banks.
Leith Wheeler Canadian Equity (Trades, Portfolio) and Mawer Canadian Equity Fund (Trades, Portfolio) also have positions in Royal Bank of Canada.
CI Global Financial Sector ETF
The fund bought 573,541 shares of the CI Global Financial Sector ETF (TSX: FSF.TO, Financial), giving the position a weight of 1.68% in the equity portfolio. Shares averaged $ 20.69 during the first quarter.
According to the fund’s website, the fund seeks to track the performance of an index fund made up of financial services companies in countries around the world and emerging markets.
SPDR Gold Equity ETF
The fund sold 68,930 shares of the SPDR Gold Shares ETF (GLD, Financial), eroding 2.39% of the equity portfolio. Shares averaged $ 168.06 in the first quarter.
According to the fund’s website, the SPDR Gold Shares ETF seeks to track the price performance of gold bullion.