Putting Quality Before Quantity to Risk Manage

In potentially volatile times, a concentrated approach to portfolio construction might seem riskier than a broader spread of holdings. But with a focus on finding quality companies demonstrating a competitive advantage, our team believes the fund is well-positioned for the current environment.

Quality over Quantity

By seeking out US stocks demonstrating characteristics such as inelastic demand, strong pricing power and the ability to control costs, the team believe these competitive advantages can help provide a cushion against economic turbulence and position the portfolio for long-term growth potential.

Consistent Alpha

Our in-depth research targets superior businesses with strong management, strong balance sheets and low regulatory risk features. From a shortlist, only those with the highest expected return and attractive valuations based on five-year projections earn a position within the portfolio.

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk.

An Experienced Team

Jim Tierney leads a team of dedicated analysts with an average of over 21 years’ experience and one of the highest “analysts to company” ratios in the industry.

Investment Risks to Consider

These and other risks are described in the Portfolio's prospectus

Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:

  • Allocation risk: The risk that the allocation of investments between growth and value companies may have a more significant effect on the Portfolio’s Net Asset Value (NAV) when one of these strategies is not performing as well as the other. In addition, the transaction costs of rebalancing the investments may, over time, be significant.

  • Derivatives risk: The Portfolio may include financial derivative instruments. These may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; their use may result in greater fluctuations of the net asset value.

  • Equity securities risk: The value of equity investments may fluctuate in response to the activities and results of individual companies or because of market and economic conditions. These investments may decline over short- or long-term periods.

  • Focused portfolio risk: Investing in a limited number of issuers, industries, sectors or countries may subject the Portfolio to greater volatility than one invested in a larger or more diverse array of securities.

  • OTC derivatives counterparty risk: Transactions in over-the-counter (OTC) derivatives markets may have generally less governmental regulation and supervision than transactions entered into on organized exchanges. These will be subject to the risk that its direct counterparty will not perform its obligations and that the Portfolio will sustain losses.

  • Real estate investment trust (REIT) risk: Investing in equity REITs may be affected by changes in the value of the underlying property owned by the REITS, while mortgage REITs may be affected by the quality of any credit extended. REITS depend on management skills, are not diversified, subject to heavy cashflow dependency, default by borrowers and self-liquidation and subject to interest-rate risks.

Fund Literature