Wealth isn’t simple.
That’s why we
are here.

OUR APPROACH

We aim to provide a stable return pattern for our clients over time, by utilizing a prudent, disciplined, and systematic approach to investment management while seeking to minimize volatility based on the objectives and strategy of our clients’ portfolios.

The objective is to remove the emotions of greed and fear when it comes to investing in volatile and uncertain times. The focus is on the clients Investment Policy Statement (‘IPS’) and their long-term objectives, while also taking into consideration their short-term needs.

PORTFOLIO CONSTRUCTION

We apply a balanced approach to investing, focusing on cash, fixed income, alternative strategies, and equities as our four main macro asset classes. We then determine the ideal/optimal asset mix to achieve a portfolio that is consistent with the client’s risk tolerance and Investment Policy Statement.

For cash and fixed income, we assess and analyze the bond market and monetary policy to determine our call on duration risk and whether we hold short term or long-term fixed income investments.

For our alternative strategies exposure, we evaluate a number of strategies that we hope can supplement the fixed income exposure, given where interest rates have been. The main objective here is to achieve a stable source of income with lower volatility.

For our equity allocation, the focus is on tax-efficient dividend income and capital gains by investing in Canadian and US companies that offer value and dividend growth. Our equity strategy, which utilizes our fundamental factor and rules based quantitative process which selects 35-40 high quality dividend-paying stocks. For our international exposure, we utilize ETFs and invest in the regions our macro models suggest based on valuations and growth prospects.

OUR EQUITY SELECTION PROCESS:

We conduct our own research and select large companies with the following attributes:

• Focus is on dividend income and capital growth
• Value and dividend focused investments
• 35 – 40 high quality dividend-paying stocks
• Equal weighted holdings

Large, capitalized companies with:

• Strong management and great track records
• Strong balance sheets; ROE, ROA
• Attractive valuations; P/E, P/B, dividend yields
• Earnings, dividend, and capital growth opportunities

Focus on lower volatility and downside protection

• Function of dividend strategy
• Beta Management

Strict Buy and Sell discipline

• Function of our fundamental factor and rules-based quantitative process

DIVERSIFICATION AND DISCIPLINE

Portfolio diversification is the basic prudent approach to reducing overall investment risk. By making a prudent allocation of each client’s portfolio to cash, fixed income, alternatives, and equities, we achieve an optimal level of diversification which reduces portfolio volatility and allows for optimal risk adjusted returns.

Downside protection or risk management is key to a successful long term investment strategy. Getting emotional and chasing trends can be detrimental to achieving investment objectives. By sticking to our investment style and not drifting from our strategy, in other words, being disciplined is key to long term success.

COMMUNICATION WITH CLIENTS

We provide our clients with quarterly statements that contain their portfolio, performance results and income projections. We also produce a quarterly review and outlook report to keep our clients apprised of the activity in the strategy and how we may be repositioning the portfolio if needed.

CUSTODIANSHIP:

IP Investment Counsel Inc. is the registered portfolio management firm which each of our clients have engaged to manage their investments on a discretionary basis. We are obligated to engage an approved third-party custodian which acts as the safekeeper of all client assets. IP Investment Counsel Inc. trades on behalf of our clients and the custodian executes the trades and settles them in the clients’ custodial accounts. The custodian is also responsible for collecting all interest and dividend income earned in each account. The custodian is required to report to the clients monthly by mailing them statements which can be used to compare to the IP statements, ensuring their accounts are reconciled and all assets are accounted for. The custodian is also responsible for issuing year end tax slip to each client.