Long ago, a valued client summed up his instructions to us like this:
“Get me a good return and keep me out of trouble.”
Although we use proprietary quantitative and technical tools to aid in our stock and bond selections, we are essentially fundamentalists with access to extensive institutional research. We are conservative investors who value capital preservation. That means we sincerely do not want you out on the risk curve where you could lose your money. Our minimum variance strategy of portfolio construction is designed to optimally minimize risk as a key factor in delivering performance.
The “Minimum Variance Anomaly” was first identified in academic literature in 1975. (Haugen & Heins, “Risk and the Rate of Return on Financial Assets: Some Old Wine in New Bottles”; Journal of Finance and Quantitative Analysis, December 1975). It is considered an anomaly because it contradicts the relationship between risk and return predicted by the Capital Asset Pricing Model, a tenet of Modern Portfolio Theory.
This low volatility portfolio strategy has been shown to produce higher risk-adjusted returns than portfolios with high volatility stocks in nearly all markets studied.
By consistently applying our risk-managed approach, we are founded on the principle that markets tend to reward investors who manage their risk.
We work with investors whose investment philosophy and idiosyncratic view of the world is aligned with ours and includes addressing risk first.
To begin, we have a chat – about you and what’s important to you and how you got to where you are today. Then we talk about where it is you’d like to go. As we gain an understanding about these things, the type of retirement lifestyle you want for instance, we will identify any challenges or problems that need to be addressed so we are free to focus on the performance of your portfolio. All prospective clients are introduced to our practice as we review the core components of your financial picture including investments, cash flow management, tax management, insurance needs and estate planning. Priorities are established and an Investment Policy Statement (IPS) is created. This mutually created document will clarify for the manager, investment goals and restrictions, volatility and risk tolerance, asset allocation, types of investment instruments that may and may not be used, tax considerations, income or liquidity needs, investment methodology, the responsibility of each partner and degree of client involvement. It is signed by you and your portfolio manager but it is a flexible guide and may be altered as your circumstances change.
Core Custom Portfolio
We structure client portfolios to meet their specific financial objective.
Our core custom conservative growth and income portfolios are complimented by a growth oriented momentum strategy called:
by Bob McWhirter on BNN Bloomberg Television
The Canadian Dividend Strategy, as discussed by Bob McWhirter on BNN Bloomberg Television, is available through Enriched Investing Incorporated. If you would like further information about the Canadian Dividend Strategy and how your assets can be managed this way, please feel free to email or call Margaret Samuel at firstname.lastname@example.org or 416-203-3028.
Bob McWhirter’s strategy captures above average growth, below average valuation (lower is better), low historical risk, above average return on equity, and above average annual dividend growth.
We buy 25 Canadian companies with:
– Above Average Growth
– Below Average Valuation and Low Historical Risk
– High Return On Equity
– Above average Annual Dividend Growth
Rising profitability results in growth of free cash flow, and return on equity.
Dividend growth with low volatility has been shown to contribute more to returns than dividend yield alone.
There are 37 variables which determine the rank of each stock; in addition there are 15 buy rules and 11 sell rules. These guides help to systematically contain risk while consistently uncovering greater potential for growth. The strategy has been used successfully for several years and continues to evolve.
Types of Accounts Available
- Investment Account
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
- Locked In Retirement Account (LIRA)
- Registered Education Savings Plan (RESP)
- Registered Disability Savings Plan (RDSP)
- Tax Free Savings Account (TFSA)
- Individual Pension Plan (IPP)
- Institutional Investors, Pension Plans, Endowments, Foundations, Charities, Family Trusts, Corporate Accounts, Not for Profit Organizations