Investment Approach

Since the firm's inception more than 31 years ago, the same investment approach has been pursued in all asset classes and has been applied consistently across all portfolios. The firm uses no external managers, and all investment decisions are made based on research performed by the firm's investment management team.

Investment Management Team

Fundamental Approach

 

Fundamental means we focus on the economies, industries and companies in which we invest. We actively seek attractive investments and make an effort to identify longer-term trends and issues that will define the future.

 

Our team of engineers, geologists, health care practitioners and other experts study companies. They meet with them, compare them, talk to their clients and suppliers, and review their financials.

 

Our research includes the development of financial forecasts for each company considered with the cooperation of senior management. We believe this is an important part of our evaluation process, helping us better understand the various influences on profitability and possible changes.

 

Fundamental in-house research

Top-down forecasts of global economies and bottom-up assessment of industries and businesses are key.

Price sensitivity

Price only has meaning when compared to the underlying economic value of a company's activities.

International perspective

Research team organized along global sector lines is optimal.

Longer investment horizon

Economic forces often become more predictable when viewed over longer periods.

ESG integration

Sustainability factors contribute to long-term performance.

Public-markets universe

Diversification, liquidity, transparency, low costs and strong governance reduce risk.

Our goal is to build portfolios that are exposed to diversified economic activity in the industries and regions of the world.

In equity investments, we focus on companies that have strong balance sheets, steady cash flow, solid dividend yields and the prospect for appreciation on the strength of improved performance and market re-valuation over a three- to five-year time horizon.

In fixed income investments, we emphasize holding high quality bonds that meet the objectives of stability and income. We focus on studying the world and North American economies to develop views on future movements in interest rates to position the portfolios appropriately. We also spend time looking at individual securities and their particular attributes, such as credit risk, inflation protection, embedded options and other characteristics.

O Canada! We Invest in Thee.
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Canada is a well-governed, resource-rich country full of entrepreneurial spirit. Its deep financial markets have been a great place to invest.

Independent for 31 years and managing total assets of over $28 billion, Letko Brosseau has provided clients consistent outperformance with investments in Canada and around the world. We take a long-term view based on fundamental research, economic analysis, and the deep industry expertise of our talented team.

Also managing Balanced, Global Equity, Emerging Markets Equity & Fixed Income.

O Canada! We Invest in Thee.

$

7.3

+

Billion Canadian equity composite

13.0

%

Annualized returns for over 23 years

5.3

%

Annualized benchmark outperformance

Performance results referenced above are annualized and presented in Canadian dollars gross of fees for the Letko Brosseau Canadian Equity Composite from October 1, 1995 to December 31, 2018. This $7.3 billion composite includes all discretionary Canadian equity mandates with asset mix targets for fixed income securities of less than 10%. The benchmark since inception is 2% FTSE Canada 91 day T-bill Total Return Index and 98% S&P/TSX Composite Total Return Capped Index. Past performance does not guarantee f uture results.

*Peer comparison universe is the RBC Investor & Treasury Services Canadian Equity Funds Active Equally Weighted Universe, dated December 31, 2018.