Jennifer Tozser, senior wealth advisor at National Bank Financial Wealth Management in Calgary. Illustration by Joel KimmelThe Globe and Mail
For some investors, the surging oil price and the war in the Middle East are bringing back memories of 2022, when energy was one of the few sectors that performed well in a bear market.
The key difference is that interest rates aren’t rising at the same speed, which could lessen the impact on the market compared to 2022, says Jennifer Tozser.
Still, the senior wealth advisor and portfolio manager with Tozser Wealth Management at National Bank Financial Wealth Management in Calgary says investors should brace for more volatility in the weeks ahead, depending on how long the conflict lasts.
“If you have a properly diversified portfolio, you shouldn’t be too worried,” says Ms. Tozser, who oversees about $665-million in assets.
Her average portfolio includes about two-thirds stocks and the rest in alternative assets, including structured products and private companies.
While most of her equities are North American-based, she has added more international and Canadian holdings over the past year.
The top three sectors in her equity portfolio include about 15 per cent in energy, including midstream producers and pipelines; 12 per cent in U.S. technology stocks; and about 10 per cent in U.S and Canadian financials.
The investment style and mix have helped her achieve a 15.2-per-cent return over the past 12 months. Her three-year and five-year annualized returns were 16 per cent and 10.4 per cent, respectively. The performance is based on total returns, net of fees, as of Feb. 28
The Globe spoke with Ms. Tozser recently about what she’s been buying and selling:
Name three stocks you’ve been buying.
Canadian National Railway Co. CNR-T, one of Canada’s two main railroad companies, is a stock I bought in February for about $145 a share. The reason I picked CN over Canadian Pacific Kansas City Ltd. CP-T was the cheaper valuation.
I expect we’ll see growth in the Canadian economy this year. There are structural advantages for CP and CN because nobody else can build a railroad. They’re also very efficient at what they do. I used to own CP (from about 2012 to 2024) but sold it after it outperformed and the valuation got expensive.
Charles Schwab Corp. SCHW-N, the U.S. financial services company, is a stock I bought in February this year for around US$96 a share.
What I like about Charles Schwab is that it has a dominant chunk of the two fastest-growing markets in financial services: registered investment advisors (RIAs) and retail investors.
RIAs are independent advisors who want to run their own businesses, while retail investors are those who invest through a branch or a discount brokerage. I like the outlook for both of these client groups.
Agnico Eagle Mines Ltd. AEM-T, the Canadian-based senior gold producer, is a stock we bought in April last year for around $165 a share.
The question for me wasn’t which producer to buy; it was whether to buy bullion or a producer. I decided not to buy bullion because the longer gold prices stay high, the more profitable gold producers will be.
And if the market turns quickly, a strong company like Agnico will have good programs in place, so it’s not just exposed to the spot price. I also wanted to buy a senior producer and not a junior, which is riskier.
Name a stock you’ve sold recently
Walmart Inc. WMT-Q, is a stock I sold in April and May last year. I made a lot of money on it. I bought it for about US$42 a share and sold it last year for about US$95.
Yes, it’s gone up since, but I sold it because I wanted to buy gold, specifically Agnico Eagle, which has performed much better than Walmart over the past year.
Sometimes, you have to sell something good to buy something better. That’s the discipline. I try to keep my stock count consistent and there’s always competition for dollars to be invested.
This interview has been edited and condensed.