Investment Strategies

Diversification is key to strong portfolio performance – it helps eliminate short-term volatility and supports the delivery of long-term returns.

Jeff Hales

Partner & Portfolio Manager

Our Investment Approach

Every investment decision is the result of consistent thinking designed to deliver consistent results. We do not attempt to predict bull or bear markets or time sector performance. Instead, we focus on four key priorities.

Value Consciousness

We believe attractive long-term returns are generated by buying investments at a discount to their true intrinsic value.

Long-Term Thinking

In the long term, we believe it’s best to remain committed to an investment strategy rather than react to short-term noise.

Absolute Returns

We monitor our performance against the absolute returns that matter most to our clients, regardless of market conditions.

‘Bottom Up’ Portfolio Construction

Our security-by-security selection de-emphasizes market cycles, as individual companies can do well even if industry performance is down.

Benefits of Asset Class Diversification

Individual asset class perform differently from each other, with some rising as others fall. Asset class diversification lets you increase your odds of success and reduce negative consequences by spreading the risk across different types of investments.

Traditional Mix of Stocks and Bonds

Large weighting in low-yield asset class
Excessive portfolio volatility
Limited flexibility to meet portfolio objectives

Multiple Asset Class Mix

Reduced portfolio volatility
Similar returns, with increased certainty
The ability to customize for conservative, growth, and high-growth preferences

Asset Class

Investment Strategy

Public Equity

Stock Market Investments

Core Equity

This strategy is a portfolio of publicly-traded equity securities that aims to provide higher long-term capital appreciation for an above average risk tolerance.

Higher long-term inflation adjusted returns
Ample liquidity
Capital gains income taxed lower than dividends/interest

View Core Equity

Dividend Equity

Aims to provide investors with a stable and growing stream of after-tax income by investing in a concentrated portfolio of undervalued high quality North American equities.

Boosts returns when markets are rising
Ample liquidity
Helps offset losses during market declines

View Dividend Equity

Fixed Income

Publicly traded government and corporate bonds

Fixed Income

This strategy aims to provide investors with a stable income, low volatility, and safe principal by investing primarily in Canadian government and corporate bonds, debentures, and short-term notes.

Diversified equity risk
Most reliable cash stream
Secure principal

View Fixed Income

Credit Opportunities

Seeks to provide investors with attractive risk-adjusted returns that are less volatile than equities.

Attractive long-term asset class
Higher returns than fixed income
Lower risk than equities

View Credit Opportunities

Private Investments

Capital investment in non-publicly traded companies

Private Debt

Private debt is loans negotiated with private companies or individuals, outside the banking system; categories include direct lending and real estate lending, among others.

Enhanced returns
Lower volatility
Protection against rising interest rates

View Private Debt

Infrastructure & Real Assets

“Real assets” are tangible investments that have intrinsic value due to their substance and properties. Examples include precious metals, real estate, and infrastructure such as pipelines and data centres.

Enhanced returns
More stable but less liquid than financial assets
Protected against inflation

View Infrastructure & Real Assets

Our ESG Perspective

Environmental, Social and Governance (ESG) plays a significant role in our investment decision process. We believe it’s integral to delivering sustainable returns for our clients and communities.

Focus is a signatory of the United Nations Principles for Responsible Investment.

Integration

We consistently consider ESG issues in the selection, management, and monitoring of investments and incorporate them into our analysis and decision making.

Disclosure

We encourage the development of ESG standards, disclose our ESG activities to clients and stakeholders, and seek disclosure by the entities in which we invest.

Constantly Informed

We will continuously expand our understanding of material ESG issues affecting our portfolio and stay informed on emerging trends and issues.

Active Participation

We incorporate ESG considerations into our operations, promote implementation within the investment industry, and will report on our progress.