Thursday, August 22, 2019

Our Portfolio

Our Own Portfolios

Our Own Portfolios


The Type of Account you will establish with us will depend upon the size of your investment portfolio. If your portfolio has a value of $1,000,000 or more, you may prefer to have your own individual, segregated account.

If your portfolio is less than $1,000,000 we would recommend for your assets to be invested in our Pooled Investment Funds which are described below. This approach is the best alternative because it is the most effective and economic way to properly diversify your assets.


Our Pooled Funds


Our internally managed Pooled Funds are created as a cost-efficient way to accommodate investors with similar risk and return characteristics, seeking growth or income or a combination of the two as their investment objective.


The Global Wealth Builder Fund

Suitable for investors seeking long term growth of their assets by investing in the fastest growing companies in the fastest growing economies in the world. The fund invests primarily in common stocks or where appropriate, in foreign Indexed Funds. If our work indicates that risk seems excessive and a safer strategy would be to reduce stock market exposure, we have done so in the past and may do so in the future. The Fund may also buy bonds and preferred shares if we think the opportunity from those assets is sufficiently attractive. The Global Wealth Builder Fund is “fully managed” which means we regularly adjust the investments and the currency exposure to reduce risk or improve the growth potential of the portfolio. Although the fund’s objective is growth, we believe that dividend income is extremely important. We believe that investors overlook dividends at their peril because they are the largest contributor to investment performance.

The High Income Wealth Builder Fund

Suitable for investors seeking regular monthly income or investors with reduced risk tolerance. The assets of the fund are based primarily in Canada and the U.S. and are selected on the basis of the income return and the potential for growth of income. The Fund may also invest in bonds, preferred shares and other income producing assets. Given the current low interest rate structure, the fund is primarily invested in dividend paying common stocks which we expect will increase future dividend payments. Given the very low interest rate structure, presently we are not in favour of fixed income investments because the income is fixed at a very low level and we think it is preferable to have a growing stream of income to keep up with inflation and taxes. Dividends have historically proven to be a reliable source of growing income.







ReportingTo have peace of mind, you need to know what is going on so we keep you well informed. You can stay on top of your investments and portfolio management decisions both via the client section of our web-site as well as regular mail.

We provide a Monthly Investment Report we call: “WEALTHNOTES”, which include a review of investment performance and a short discussion about the economic and investment environment.

Each calendar quarter we provide a more comprehensive overview of investment activity and a performance review.

In addition to these regular reviews, we encourage our clients to call us at any time.



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Investment Wisdom



The Federal Open Market Committee (FOMC) reduced the central bank rate by 0.25% yesterday. The Dow closed down 334.75 points (1.22%) which reflects the disappointment that the cut wasn’t 0.50%, with promises of more stimuli to follow.

The market fully recovered that loss early today but Trump’s announcement of additional tariffs of 10% on over $300 Billion of Chinese exports caused that gain to evaporate to a loss of another 280 points (1.04%).

The FOMC is walking a delicate tightrope. If they had made a bigger cut and promised more stimuli, investors would have interpreted that as confirmation that the economy is in worse shape than is understood.

The question period after the announcement was an amazing display of circumlocution. I found it quite understandable because the US economy has some pockets of weakness that are concerning but the indicators are not universally bad.

I will give them the benefit of the doubt for the time being but I suspect that the 20% market decline in late 2018 increased pressure from Mr. Trump to cut rates. Trump does not want a strong US currency or falling markets.

He has been trying to talk down the US currency.

The European and Asian economies are clearly in a slowdown, which will impact the US in due course. This cut in rates could be the FOMC’s response to the risk from external weakness. The European Central Bank is promising to join in with more stimuli. Their rates are already negative, which is killing the European banks.

The FOMC denies that more cuts will be automatic unless the economy needs more help. I don’t believe that statement, because there has never been just one cut and done through history.

They seem to be trying to get out of the way of the financial markets, rather than promise to come to the rescue of investors if markets decline. This is probably the most important message because investors have been rescued from falling markets since 2009 and have been expecting this to continue.

Currently, short-term bond yields, have fallen below the Fed’s new rate. Clearly, the bond market is anticipating more rate cuts.

All-in-all, the rate reduction is not meaningful. In the meantime, we are implementing a significant adjustment to our portfolios with the expectation the change may provide a solid gain over the next few months.  There is no guarantee of course but it is a strong likelihood.


Bruce Sansom






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Global Wealth Builders Ltd.
Suite 105, Mayfield Business Centre
10525 - 170 Street N.W.
Edmonton, AB T5P 4W2

 Toll Free: 877-488-2858
 Phone: 780-488-2858
 Fax: 780-488-2837

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