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U.S. - ENFundamental 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 analysts 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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