We are excited to be announcing the long awaited growth portfolio at 5i Research. There has been a large amount of demand for this portfolio after the success of the income and balanced equity portfolios and we thought that a third, growth oriented portfolio, makes sense for our Membership to cover most types of equity investors. Members need to enter the growth portfolio with eyes wide open, as by nature it is higher risk and will be much more volatile. Also, just because our other portfolios have performed well so far, it does not mean that this portfolio or others will continue to do so. So let’s take a quick look at the structure of the portfolio:
As is typical for a 5i Research portfolio, we have structured the portfolio to have a bit of concentration in holdings so that when we are correct in the portfolio, the portfolio will actually enjoy the benefit. This is contrary to many portfolios that hold 60 to 100 securities and essentially end up shadowing an index. The growth portfolio holds 22 securities and a 5% cash balance to allow for the purchase of any other names that may be of interest. The majority of positions have a 3% to 5% weighting with the exception of one holding. The weights correspond more to size/stability/liquidity considerations as opposed to our thoughts on the return potential of any particular name. The portfolio is initially biased toward the technology and healthcare sectors, as these are two areas we expect to remain strong, and these are also usually the more growth-oriented sectors. We do continue to hold exposure across industries for purposes of diversification. While largely Canadian holdings are in the portfolio, we do have some US exposure. Let us move on to the specific holdings. To follow along, you can view the portfolio here.