Equity Investment Process

We consistently follow a rigorous, three-step process when we pick stocks for our mutual funds:

Equity Investment Process

1. Value – what is the stock really worth?

We look very closely at the long-term value of stocks. This tells us if certain stocks are trading at prices below what they’re actually worth. These stocks offer long-term growth potential but also offer downside protection because the market has already discounted them.

2. Quality – how solid is the company’s business?

If we think a company is undervalued, we then use fundamental analysis to understand how well the company is managed, how profitable it is and how competitive its business is. This tells us whether or not the company's stock is a quality investment.

If a quality company's stock is undervalued by the market, then it's a stock that we might be interested in.

3. Building a portfolio – which stocks are right for our funds?

We carefully select stocks that have passed the first two steps based on what they can contribute to one of our mutual funds. We also make sure that the portfolio in each of our mutual funds is properly diversified. Our equity funds will typically hold between 40-60 stocks.