Top consumer discretionary stock picks


Lorne Zeiler, VP, Portfolio Manager and Wealth Advisor at TriDelta Financial, was recently invited by the Globe and Mail to provide top stock picks in the consumer discretionary sector.

Special to The Globe and Mail, Published Tuesday, May 10, 2016

16413399_sConsumer discretionary stocks can capture the momentum of an improving economy. In good times, money flows into this sector as retailers, media companies and automotive manufacturers benefit from increased spending by consumers with more disposable income. In turn, investors are rewarded with rising share prices and dividends. Yet during a more uncertain economic environment – such as the one we are in now – the sector can be tricky to navigate, so we asked three investment professionals for their top picks.

Lorne Zeiler, portfolio manager with TriDelta Financial in Toronto

  • L Brands Inc. (LB-N)
  • Last close: $70.03 (U.S.)
  • Dividend yield: 3.43 per cent

Based in Columbus, Ohio, this retailer owns Victoria’s Secret and Bath and Body Works – two chains with global reach and leaders in their respective retail categories. “Both brands have strong customer loyalty, providing the company with pricing power and ability to maintain its strong margins,” Mr. Zeiler says. Benefiting from an improving environment in the United States, the company is also expanding rapidly into emerging markets, building its revenue overseas while increasing efficiencies in existing stores in North America and Europe to improve margins. Also of note, L Brands has “a history of dividend growth and trades at a reasonable valuation to its peers,” he says.

  • Tupperware Brands Corp. (TUP-N)
  • Last close: $55.49 (U.S.)
  • Dividend yield: 4.90 per cent

The world’s largest direct seller of plastic storage containers and cosmetics, the company has consistently strong sales in mature markets such as North America and Europe. Where the company’s real growth lies, however, is in emerging markets such as China, Brazil, Argentina and South Africa. “Tupperware offers a high dividend for yield-hungry investors and trades at an attractive multiple of less than 14 times forecasted earnings,” Mr. Zeiler says. A strong U.S. dollar did negatively affect earnings in 2015 because of Tupperware’s exposure to foreign markets where, despite increased sales, revenue was lower when converted back to dollars. “This headwind may now be a positive as Tupperware recently increased its earnings per share estimate for 2016 by 5 per cent solely based on the decline in the U.S. dollar.”

Here is the link to the original Globe & Mail article.

Lorne Zeiler
Written By:
Lorne Zeiler, MBA, CFA
VP, Wealth Advisor
416-733-3292 x225

Are Canadian banks still a buy?


lorne_bnn_jan2015With Canadian bank stocks declining approximately 15 percent as a group over the past 3 months, Lorne Zeiler, VP, Portfolio Manager and Wealth Advisor, TriDelta Investment Counsel, was recently interviewed on BNN regarding his view that now is a good time for long-term investors to add exposure to Canadian bank stocks.  Reasons for Mr. Zeiler’s bullish long-term view include compelling valuations (11.0X EPS 2015 expected earnings), high current dividend rates (4.0%+ for most Canadian banks, but payout ratios remain at approximately 45% of projected earnings), earnings stability and their strong business franchises.

Click here to watch the full interview.

Lorne Zeiler
Written By:
Lorne Zeiler, MBA, CFA
VP, Wealth Advisor
416-733-3292 x225

TriDelta High Income Balanced Fund delivers 15.9% first year return


income-fundThe TriDelta High Income Balanced Fund was developed to deliver strong results while providing something that many Canadian income investors are missing – diversification.

The Fund achieves this through:

  • Institutional investment strategies such as put and call options to lower volatility
  • Leverage on the fixed income portion of the portfolio to increase income
  • Actively investing in foreign exchange, hedging strategies and global bonds

The TriDelta High Income Balanced Fund completed its first year of operations on November 30, 2014 with a very strong return of 15.9% (F-Class shares). Unlike most alternative investment or hedge funds, TriDelta High Income Balanced Fund charges no performance fee and its management / advisory fee is lower than most mutual funds.

The fund is managed by Edward Jong, Head of Fixed Income and Cameron Winser, Head of Equities at TriDelta.

TriDelta’s fund delivered excellent overall results in the hedge fund sector as outlined in this news item,

The Fund was a steady top performer throughout the year. Its 1 year return was 15.9%, earning 6.5% over the past 6 months, 2.2% during the past quarter and 3.8% in the month of November. The Fund generated positive returns in 10 of the past 12 months.

From a performance perspective, the Fund was in the top 2% of all Growth and Income Funds (7,200 funds) found on GlobeFund, and among the top performers in that group, had among the lowest equity weightings, and highest risk adjusted returns.

The Fund is offered by term sheet and subscription agreement. Prospective investors must be Accredited Investors.

Class F Shares are owned by clients of TriDelta Investment Counsel Inc. These clients pay an advisory fee to the firm, typically based on their assets under management. An investment fund must prepare disclosure documents that contain key information about the Funds. You can contact TriDelta Investment Counsel Inc. for copies of these documents and more information on the Fund at 416-733-3292. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

TriDelta Investment Management Committee

Cameron Winser

VP, Equities

Edward Jong

VP, Fixed Income

Ted Rechtshaffen

President and CEO

Anton Tucker

Executive VP

Lorne Zeiler

VP, Wealth Advisor

First quarter earnings


TriDelta offers investment solutions that consist of a variety of targeted, discretionary portfolios to deliver superior, risk adjusted returns. These include Canadian, US and global solutions ideal for non-registered, RRSP and TFSA’s.

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