Expert solutions, right down to the core

In 2010, leaning on his experience as head of Canadian equities for RBC Wealth Management, Matt developed a unique concept known as the Core 12 – a set of Canadian businesses that he believed should serve as the foundation for all long-term growth portfolios. Chosen to drive sustainable performance for clients over the long term, these businesses distinguish themselves among the rest thanks to 10 unifying features.

1

Sustainable management

Strong management teams with deep benches of young talent as existing managers age out.

2

Historic capital returns

A history of returning capital to shareholders via dividends and share buybacks.

3

High Return on Invested Capital (ROIC)

High and consistent ROIC, which is strongly correlated to long term share performance.

4

Strong barriers to entry

Strong barriers to entry prevent and restrict competition, keeping the market from oversaturation.

5

Strong balance sheets

Strong balance sheets indicate efficient asset management and are utilized to drive growth but are managed conservatively.

6

Capital discipline

Strong capital discipline limits shareholder dilution and drives sustainable income.

7

Consistent cash flow

Consistent free-cash-flow growth can help facilitate acquisitions as well as increases to dividends and share buybacks.

8

Responsible approach

A socially responsible approach with a soft touch when it comes to the environment and a high percentage of women in senior positions.

9

Balanced risk-taking

A willingness to take risks when the opportunity presents, but also a willingness to admit and move on from mistakes that will inevitably arise.

10

Compounding returns

A long track record of compounding shareholder returns through multiple economic cycles indicates favourable future returns.

The Core 12 is at the heart of Matt & Jeff’s investment approach, providing the strongest of underpinnings for client portfolios.

core 12 graph

Trusted solutions, proven results

While launched more than a decade ago, the Core 12 has remained remarkably stable, with no substitutions and significant outperformance relative to both the Canadian and U.S. markets.

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We work tirelessly so you can rest easy, knowing your wealth is in the best care.

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