A disciplined approach to investing

If your portfolio’s performance is poor, so is our business.

That’s why we tend to be risk-averse and holistic in our approach to investing. Instead of trying to beat a specific benchmark, we aim to make money any way we can and keep losses to a minimum.

“Devoting time and energy to make our mandates succeed isn’t just a daily task – it’s our primary business.”

- Michael Newton, Portfolio Manager & Investment Advisor

Our Investment Philosophy

We take business risks under our own reputation and embrace accountability to our investors. We stay current with numerous non-traditional resources, incorporating non-traditional inputs and meta-analysis into our research. Our agnostic process allows us to view businesses and situations from perspectives that others may not.

We believe there are three sources of edge in markets — informational, analytical, and behavioural. The most enduring of these three is behavioural, as humans tend to react emotionally. We pride ourselves on being agnostic interpreters of what the market is telling us. Our systematic portfolio construction approach aims to deliver repeatable results and minimize behavioural biases. In addition, we employ some degree of technical analysis. This results in a beautiful balance between the objective and the subjective. We try to strike an equally appropriate balance between what we see as three crucial pillars of any sound investing strategy: technical, fundamental, and observational.

The financial markets are continuously evolving, and so must our approach to investing. Although change is a constant in the investment world, we are always seeking simplicity. We have had success not by deconstructing intricate complexities, but by exploiting unrecognized simplicities.

In reality, simplicity often makes all the difference.

Key Management Tenets

  • We believe strongly that long-term investing is the best way to outperform the market. Our definition of long-term investing, however, is anything but conventional.

  • We don’t believe that you need to hold a stock for many years to be considered a long-term investor. Instead, we think that long-term adherence to an investment strategy is far more important to your success.

  • We spend a great deal of time selecting great companies across sectors and regions to achieve returns on your investments.

  • We minimize your downside risk with strategic trading that involves dynamic stop-loss targets and tactical short-term positions including inverse equity positions.

Our Planning Approach

We take an integrated approach to gain a full understanding of each of your life stages. We listen carefully to learn about your individual circumstances and your financial goals but, more importantly, to discover why you have these goals, and to decide how we are going to achieve them.

We utilize a comprehensive discovery process and financial planning tool that allows us to examine your full financial picture. With an emphasis on planning, our team is able to get to know you professionally and personally. Part of our planning process is designed to help our team better understand who you are as an investor, and your suitability within our investment outlook. To enhance your planning involvement, we introduce you to one of our RBC Financial Planning specialists, who evolves your plan further. Then, we begin developing your own tailored-made plan to meet your specific financial needs.

Our Priority Is You

We put our clients’ interest first and foremost at all times. We provide full transparency about what your portfolio contains and why. The Newton Group establishes a relationship with your financial professionals. In addition to RBC’s Wealth Planning experts, we collaborate with lawyers, accountants, executors and private bankers to safeguard your wealth and provide alternative solutions to your financial situation.