Overall, the sum of two units of yo...

Overall, the sum of two units of you are in a surpassingly favourable financial position--each with a piece of work a paid-up home, real estate holdings, a securities portfolio and RRSP My alone real suggestion is that you adjust your portfolio to experience to achieve more growth--without taking significant risks.

OVERVIEW

First of all, I have valued your list of securities and enjoin then into various categories used by the agency of the Toronto Stock Exchange (TSE 300)

As you can papal court the weight of your investments is in utilities and pipelines, and in banks, with a sprinkling in industrial products

I would make several observations:

* Overall, chiefly investments are in good, solid companies.

* There is a heavy emphasis upon utility and bank stocks.

* You have too many (35) individual investments to follow--especially with your real estate properties to consider.

* You confess a number of very mature, and perhaps tired names of that kind as Canadian Pacific, B.C. Sugar, Labatt, Imperial Oil and Moore Corporation.

* You have highly little exposure to U.S. and other foreign investments.

INVESTOR PROFILES

My wife (age 47) earns $24000 by year and I (age 55) earn about $26000 by means of year. We have no dependants and our to one's home is without a mortgage. We have an interest in residential real estate worth about $250000 (rental properties)

We also have RRSP containing GICs with a variety of maturity dates (husband--$82,000, wife--$38,000).

Our pure worth is about $710,000.

INVESTMENT OBJECTIVES

Before commenting further upon your portfolio, I would put in mind of that you re-think your investment objectives. Given your employ status, apparent good health, real estate income (which you say should grow) and the five years--at least--until you retire, I would commend that you place more emphasis onward growth. There are any number of companies which should do well through the next five years and which could achieve 10-15% total recurs annually (capital and income).

SECURITIES

I would allude to you keep your sizeable holdings in utilities, pipelines and banks as the stable and moderately growing part of your portfolio. I would also gaze for opportunities, over time, to eliminate tired and small holdings of the like kind as Bracknell, CAE and Derlan.

In addition, I would prompt that you pare the portfolio back to 15 or 20 holdings, each with an average investment of $15-$20000 Then, examine to carefully follow that smaller number of investments.

In the interest of achieving sprouting in your portfolio over the nearest five years or so, I would praise that you try to pitch upon some companies that are perhaps at an earlier stage of development than many of your existing names. With Canada's continuing offence problems and with recurring weakness in the Canadian dollar, I would also insinuate that you make some further investments in U companies. any names you might consider are outlined in the accompanying table. (Table omitted.)

RRSPs

Given your ages, I would allude to that you plan, in principle, to give leave to the RRSPs run until age 71 I also make acceptable that you continue contributing to and reinvesting in your RRSP as lengthy as you can.

I would say that you are probably having put in commotion reinvesting maturing certificates at anywhere near their previous rates. Here again, if you are comfortable, I would commit that at least a portion of your RRSP be invested in for the use of all stocks for growth. I believe that several of the names you have in your regular portfolio would be highly suitable for product such as the banks, BCE Nova Corp and BC Gas.

William W Berghuis is president of Berghuis Investment opinion LTD.

Copyright Canadian Shareowner Magazine Inc. May/Jun 1994

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