The investment assets in a foundation are typically managed to meet specific objectives such income and capital growth requirements which often requires an added degree of discipline and expertise. Through our Foundation Enrichment Process we are able to work closely with the foundation to gain a thorough understanding of their objectives, investment constraints and income requirements and then implement strategies to meet those objectives.
Investment markets change but successful investment strategies are timeless.
Investment discipline is often defined as monitoring portfolios to ensure they are within stated guidelines.
We believe that more importantly investment discipline is about providing our clients with disciplined advice without being swayed by corporate, economic, or political events that take many individual investors off track. Over the last few years we have been through the technology bubble, corporate scandals, terrorist attacks and short term increases and declines in commodity prices. All of these factors can have a significant short-term impact and may take many individual investors off track. It is our role and responsibility to take a disciplined approach, at all times, regardless of the headlines.
As your personal portfolio managers, we are supported by a team of analysts and strategists providing us with more Canadian and US research than any other firm in Canada. This research capability, tied with sophisticated trading capabilities put us on the cutting edge of portfolio management.
Our process has a consistent track record of providing above average performance. Since 1984 this multi-disciplined process has achieved average annual returns of over 18% compared to the TSX at 9%. Performance will vary on a client-by-client basis depending on asset allocation and time in the market.
Through our relationship with Jantzi Research we have access to socially responsible investment research. This includes social and environmental profiles of approximately 250 publicly traded Canadian companies including the companies comprising the TSX Composite as well as 40 income trusts. This allows us to manage portfolios with a socially responsible mandate if that is an important consideration to our client.
Risk is often defined as the possibility of negative returns. More accurately we believe it is a measure of volatility. Our approach to risk control begins with the determination of the rate of return is required to meet our client’s objectives. By clearly understanding our target return we can structure the asset classes in the portfolio to meet our target without taking any undue risk. Adjusting our asset allocation, monitoring our diversification across asset classes and sectors allows us to minimize the portfolio volatility.
Our Foundation Enrichment Process has the necessary controls for today’s environment through our Portfolio Risk Group, an independent group that provides piece-of-mind for board members. They take on the responsibility of monitoring your portfolio to ensure it continues to be in line with your Investment Policy Statement.
The Foundation Enrichment Process
Our key difference
Our team possesses a unique blend of wisdom and experience, with the sole purpose of providing high net worth individuals and corporations with investment management services centered on their needs. We value our clients and are dedicated to providing only the highest calibre of professional service, based on a relationship of integrity and trust.
1. The Discovery Process
The first step is to learn as much as we can about the organization. What are the long-term objectives of the foundation? Their annual cashflow requirements and their rate of return objectives? We also discuss our investment process, the services we provide and how we are compensated.
2. Investment Policy Creation
We are committed to first understanding our clients’ needs and objectives before recommending an investment strategy. Through this understanding we can create an Investment Policy Statement, which will form the basis for all investment decisions made on the portfolio. This statement outlines the asset allocation guidelines for the portfolio together with income requirements and risk tolerances.
3. Equity Selection Process
In the management of our clients’ portfolios we follow a distinct and unique investment process beginning with analysis from three research disciplines, Fundamental, Technical and Quantitative. The companies that are viewed favorably by each of these disciplines are further narrowed down by our independent research, the views of our global strategists and our personal insight. The same approach is followed in evaluating current holdings to identify stocks to be sold.
4. Ongoing Portfolio Management
We view it as our role to insulate our clients from the financial “noise” we are all inundated with on a daily basis, which may potentially distract them from their long-term focus. On an ongoing basis we monitor each of our clients’ investment plans and review it with them to ensure it is still accurate and that we are moving towards the achievement of their investment objectives. This involves continually evaluating new investment opportunities as well as reviewing the current positions to find positions that may be at risk.
An integral part of the process involves regular contact and discussions to review your goals and Investment Policy Statement. Written portfolio reviews are provided quarterly while portfolio presentations to the investment committee and/or board are provided based on your needs. We believe this step of ongoing reporting and reviews is crucial to the process.