Our management style is the basis for the application of strategies and decisions that ensure successful portfolio management for our wealth management clients. It is the outcome of many years of experience that have generated highly satisfactory results for each of our clients.
We establish realistic target returns and we make preservation of capital our primary concern. We avoid investments of a speculative nature and we invest your money only in securities whose risks we understand well.
For Canadian equities, we use a value approach that involves acquiring quality companies at reasonable prices. Our managers look for securities issued by undervalued companies that have very little debt and preferably pay dividends. The portfolio's overall risk is limited by sector and security selection. The portion of the portfolios that is invested in Canadian equities normally holds 35 to 45 securities to ensure effective diversification. Moreover, the weight of each security generally does not exceed 5% of the portfolio's value.
Our approach also favours diversification of management methods to increase the portfolio's value added. We use various active management methods for Canadian stocks and bonds. For foreign equities, we use active management and index management. Research is done in house by our analysts with carefully selected databases.
As for fixed-income securities, we are generally partial to high-quality provincial, municipal and corporate notes to take advantage of their yield spreads over the federal government bonds.