Investment Approach
The Fiera US Equity Core strategy is focused on high-quality companies with an emphasis on income (in the form of dividends), income growth (as demonstrated by rising dividends) and a strong business model (as reflected in above average Return on Invested Capital). The goal is to achieve long-term compounding of returns while investing in a portfolio of companies with strong financial characteristics.
Empirical evidence supports that dividends have accounted for the majority of total return* in the long run and that this approach may buffet against market volatility. An aim of the portfolio is to mitigate downside risk and produce consistent levels of income.
*Source: GMO, as of August 2010.
Core Principles
- Long-term growth focused investment approach
- Seek to identify secular trends
- Extensive research on Stable and Emerging growth potential
- Combine bottom-up research with top-down trends
- Seek to identify underestimated growth areas
