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 approach

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.

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China, India, Eastern Europe, Africa and Latin America are amongst the fastest growing and most dynamic economic regions of the world. A true global investment strategy needs exposure to strong businesses in these areas.

Letko Brosseau has been investing in Emerging Markets for more than 20 years, with a dedicated Emerging Markets strategy since 2011.

Letko Brosseau has been independent since 1987 and now manages assets of approximately $27 billion. Our disciplined and long-term approach, alongside the deep industry expertise of our talented and multi-cultural team, have provided meaningful results in these high-potential markets.

  • Emerging Markets Equity
  • Balanced
  • Global Equity
  • Canadian Equity
  • Fixed Income
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$

1.8

+

billion in firm emerging market equities

8.2

%

annualized return since inception

+

2.4

%

annualized benchmark outperformance

*Performance results are annualized and presented in Canadian dollars gross of fees for the Letko Brosseau Emerging Markets Equity Composite. This $1.8billion composite was created in July 2011 and includes all discretionary emerging markets equity mandates with asset mix targets for fixed income securities of less than 10%. The benchmark since inception is 5% Deutsche Bank Federal Funds Effective Rate Total Return Index and 95% MSCI Emerging Markets Total Return Net Index.

Peer comparison universe is RBC Investor & Treasury Services Canadian Defined Benefit Plans Universe, dated December 31, 2019.

**PSN/Informa ranks product track records according to a proprietary blend of metrics. The peer group for the 6 STAR CATEGORY was created using the information collected through the PSN investment manager questionnaire and uses only gross of fee returns. Products must have an R-Squared of 0.80 or greater relative to the style benchmark for the recent five-year period. Moreover, products must have returns greater than the style benchmark for the three latest three-year rolling periods. Products are then selected which have a standard deviation for the five-year period equal or less than the median standard deviation for the peer group. The top ten information ratios for the latest five-year period then become the TOP GUNS. Ranking based on the performance of the Letko Brosseau Emerging Markets Equity Composite in U.S. dollars as of December 31, 2019. The PSN’s Emerging Markets Equity universe tracks 156 firms and 294 separate products.

Past performance does not guarantee future results.