Financial markets have evolved over the last decade. Markets are more volatile, more uncertain and more complex than in the past. Investing has become an active and dynamic process in which some traditional forms of investment simply no longer work.
Our discretionary management
Since 2008, to deal with this new reality, we have included discretionary management in our service offer. Our portfolio management focuses more on risk management than on seeking returns that beat the indices. A key study conducted by Gary Brinson, Randolph Hood and Gilbert Beebower clearly shows that 93.6% of variations in return are due to asset allocation. In short, allocation decisions have more impact on a portfolio’s overall return and variability than stock selection decisions based on market forecasts.
Over the years, we have developed proven expertise in active management of a range of exchange-traded funds (ETFs). With their low cost, their size and their scope, ETFs are an excellent tool for achieving the desired diversification and exposure to a variety of asset classes – large and small cap stocks, international equities listed on emerging and developed markets, fixed-income securities – and to important vehicles like non-traditional investments and real estate investments.
ETFs are the ideal tool to implement our investment strategies, whether short- or long-term tactics focusing on specific sectors or investments, or more comprehensive approaches related to asset classes.