Private Services

Our investment strategy is prudent, selective and diverse. We act cautiously to ensure security and growth of our clients’ assets, which have often been earned through a lifetime. We prioritize capital preservation. We purchase securities with a view of holding them in the medium and long term. For us, good asset management is based on long-term results and risks incurred.

Our asset management process requires collection of certain client information in order to establish appropriate investment policies based on their values and needs. This policy provides an asset allocation framework and guidance for further management decisions. We also consider our clients’ taxation position, as well as inflation.

We design portfolios based on each client’s investment policy, which include fixed and variable income securities offering good diversification; we assess whether it is appropriate to use mutual funds to ensure better diversification. We build each portfolio in the following way:

  • Selection of appropriate proportions of fixed-income securities and short-term investments to generate optimal returns, while minimizing risk;
  • Focus, in the fixed-income portion, on quality short- and medium-term bonds issued by governments, parastatals and certain companies with high credit ratings, to ensure capital preservation and portfolio stability;
  • Advocacy of a comprehensive approach to the equity portion, to create adequate diversification and take advantage of global growth opportunities.

OUR INVESTMENT FUNDS

 

Short-term Bond Fund

Investment Objective

Preserve capital, provide high current earnings and limit fluctuations related to changes in interest rates, by investing primarily in Canadian fixed-income securities with less than 10 years maturity. The management approach aims to achieve balance between capital protection and optimum performance and is designed for investors with short- and medium-term investment horizon. The benchmark used is the DEX Universe 60/40 (60% short term, 40% medium term).

Investment Process

The fund’s assets are invested in a diversified portfolio consisting primarily of investment-grade federal, provincial, municipal and corporate bonds (with BBB credit rating or higher) and denominated in Canadian dollars. The manager uses a top-down approach to optimize fund positioning, based on economic and sectoral outlook and individual issuers. The first level of analysis conducted on the economic outlook aims to capitalize on interest rate movements by implementing strategies and tactics for managing duration and positioning on the interest rate yield curve. The next two levels of analysis are based on sectoral outlook and issuers and aim to establish relative value strategies.

 

Bond Fund

Investment Objective

Provide high current earnings and produce long-term capital appreciation by investing primarily in Canadian fixed-income securities. This fund focuses on long-term relative performance, compared to the FTSE-TMX index for Canadian bonds and is designed for investors with long-term investment horizon.

Investment Process

The fund’s assets are invested in a diversified portfolio consisting primarily of investment-grade federal, provincial, municipal and corporate bonds (with BBB credit rating or higher) and denominated in Canadian dollars. In order to add value relative to the benchmark, the manager uses a quantitative approach demonstrating a permanent sector bias. The manager has some leeway regarding issuer selection and favours high-quality credit ratings. The fund is re-balanced monthly to reflect the underlying model, using a per-stratum replication method in order to maintain low-turnover rates, thus minimizing transaction costs.

 

Enhanced Bond Fund

Investment Objective

This fund aims to provide high current earnings and produce long-term capital appreciation by investing primarily in Canadian fixed-income securities. It focuses on relative performance, compared to the FTSE-TMX index for Canadian bonds, and is designed for investors with medium- and long-term investment horizon.

Investment Process

The fund’s assets are invested in a diversified portfolio consisting primarily of investment-grade federal, provincial, municipal and corporate bonds (with BBB credit rating or higher) and denominated in Canadian dollars. To add value relative to the benchmark, the manager employs a top-down approach to optimize fund positioning, based on economic and sectoral outlook and individual issuers. The first level of analysis of the economic outlook aims to capitalize on interest rate movements by implementing strategies and tactics for managing duration and positioning on the interest rate yield curve. The next two levels of analysis are based on sectoral outlook and issuers and aim to establish relative value strategies.

 

Income Fund

Investment Objective

Generate high current earnings as dividends and interest income, while maintaining a highly-diversified portfolio that includes investment-grade bonds and equities from large North American companies with growing dividends.

Investment Process

The fund’s assets are invested in a well-diversified portfolio of equities listed on a recognized Canadian and American stock market. The portfolio focuses on dividends and common stocks from the largest North American companies. Fundamental analysis of securities is encouraged and focuses on the likelihood of dividend increase and stock price stability. This management approach also avoids market timing, resulting in very low portfolio turnover rates. Portfolios are well-diversified by sectors and industries. Liquidities and bonds are used to preserve capital when market conditions are unfavourable and may be held to manage cash position, as well as for strategic purposes. The portfolio’s core consists of high-quality securities. Securities from small- and mid-cap companies with increased long-term dividends complement this core.

 

Québec Equity Fund

Investment objective

Achieve long-term capital growth by investing primarily in equities from Québec-based issuers listed on a recognized local stock market.

Investment process

The fund’s assets are invested in a well-diversified portfolio of Québec-based equities on a recognized Canadian stock market. The portfolio follows a rigorous investment process with a focus on companies with long term fundamentals that meet our grid of criteria and with an attractive valuation. The core of the portfolio consists of Québec-based securities, which is defined as companies with a head-office in Québec or a majority of their assets or employees in Québec at the moment of the purchase. The portfolio is well-balanced between small, mid and large capitalizations.

 

Canadian Equity Fund

Investment Objective

Achieve long-term capital growth by investing primarily in equities from Canadian issuers listed on a recognized local stock market.

Investment Process

The fund’s assets are invested in a well-diversified portfolio of equities listed on a recognized Canadian stock market. Portfolios are well-diversified by sectors and industries. Liquidities are used to preserve capital when market conditions are unfavourable and may be held to manage cash position, as well as for strategic purposes. The portfolio’s core consists of securities from large and well-capitalized companies (S&P/TSX), which offer diverse participation in the Canadian economy, while ensuring portfolio liquidity. Securities from small- and mid-cap companies with increased long-term dividends complement this core.

 

American Equity Fund

Investment Objective

Generate long-term returns through capital appreciation and dividend income, through a diversified portfolio consisting primarily of stocks listed on a recognized American stock market.

Investment Process

The fund’s assets are invested in well-diversified portfolios of American stocks listed on a recognized stock market. The management approach to this strategy is “value bias”, based on fundamental approach. The portfolio’s core consists of securities from large and well-capitalized companies (S&P 500), which offer diverse participation in the Canadian economy, while ensuring portfolio liquidity. Securities from small- and mid-cap companies with increased long-term dividends complement this core. Reducing market risk and portfolio volatility are priorities.

 

Global Equity Focus Fund

Investment Objective

Generate long-term capital appreciation through a focused portfolio primarily consisting of equities issued by companies located in developed countries in Europe, Asia and the United States.

Investment Process

Clients’ assets are invested in a focused portfolio (between 20 and 30 stocks) of stocks listed on recognized global stock markets. The management approach to this strategy is “quality bias”, based on fundamental approach. The portfolio’s core consists of securities from large and well-capitalized companies with superior and sustainable business models. Securities from small- and mid-cap companies with increased long-term dividends complement this core.

 

International Fund

Investment Objective

Generate long-term capital appreciation through a focused portfolio primarily consisting of equities issued by companies located in developed countries in Europe and Asia.

Investment Process

Clients’ assets are invested in a focused portfolio (between 35 and 50 stocks) of stocks listed on recognized global stock markets. The management approach to this strategy is “quality bias”, based on fundamental approach. The portfolio’s core consists of securities from large and well-capitalized companies with superior and sustainable business models. Securities from small- and mid-cap companies with increased long-term dividends complement this core.