Guardian Capital LP What We Do

Canadian Equity Strategies

Guardian Capital manages several Canadian Equity portfolios across Equity Income, Value and Growth-At-a-Reasonable-Price (GARP) investment styles.

The Guardian Capital Equity Income strategy seeks to achieve a sustainable high level of income with attractive total returns through a diversified portfolio of income producing equity securities. We search for companies that can generate high levels of stable, predictable and modestly growing free cash flows at a reasonable price.

The Canadian Value Equity strategy focuses on sustainable companies that trade at attractive valuations and follows a systematic research driven and team refined investment approach.

The Canadian Growth Equity and Extended Core Canadian Equity mandates both seek growing companies with sustainable competitive advantages, and a reasonable valuation relative to their fundamental outlook and peer group.

Consistent across all of Guardian´s Canadian Equity strategies, our stock selection process is based on a bottom-up assessment of fundamentals. This includes a detailed understanding of the company and its industry. Meanwhile, this stock selection approach is complemented with top-down macroeconomic views.

We seek companies that have strong balance sheets, superior management teams, and core competitive advantages that will drive positive price performance over time. Risk management is an integral part of our process. Across Canadian equities, we conduct more than 450 management meetings every year - testimony to the thoroughness of our process.

Our Canadian Equity Strategies are managed as segregated accounts, and are also available as pooled funds.

Canadian Small/Mid Cap Equity Strategies

Guardian Capital Small/Mid Cap Equity strategy focuses on companies that can become national leaders in their industry. We buy and hold entrepreneurial businesses that we are confident will generate growing cash flows.

Our selection process is based on a bottom-up assessment of fundamentals. This includes a detailed understanding of the company and its industry. Meanwhile, this stock selection approach is complemented with top-down macroeconomic views.

We seek companies that have strong balance sheets, superior management teams, and core competitive advantages that will drive positive price performance over time. Risk management is an integral part of our process. Across Canadian equities, we conduct more than 450 management meetings every year - testimony to the thoroughness of our process.

Our Canadian Small/Mid Cap Equity Strategies are managed as segregated accounts, and are also available as pooled funds.

U.S. Equity Strategies

In a converging global market, Guardian is focused on selecting the best companies within each sector, regardless of geography. We achieve this with bottom-up systematic research. Through the daily screening of company fundamentals, we seek to isolate stock selection as the primary source of value added, as our research shows that comparing the rate of change in company fundamentals within a sector can add value.

We understand that markets are not always rational, so our model dynamically adjusts the factor weights, as each factor’s relevance in a given economic environment changes. Yet prior to implementation, our portfolio management team discusses portfolio recommendations to ensure the model output is consistent and economically relevant.

Our U.S. Equity Strategies are managed as segregated accounts and are also available as a pooled fund.

International Equity Strategies

In a converging global market, Guardian is focused on selecting the best companies within each sector, regardless of geography. We achieve this with bottom-up systematic research. Through the daily screening of company fundamentals across more than 1,200 stocks, we seek to isolate stock selection as the primary source of value added. While differences in local accounting standards make cross-border company comparisons difficult, our research shows that comparing the rate of change in company fundamentals within a global sector can add value.

We understand that markets are not always rational, so our model dynamically adjusts the factor weights as each factors’ relevance in a given economic environment changes. Yet prior to implementation, our portfolio management team discusses portfolio recommendations to ensure the model output is consistent and economically relevant.

Our International Equity Strategies are managed as segregated accounts and are also available as a pooled fund.

Global Equity Strategies

The world economy is getting more closely interdependent all the time. In the context of a converging global market, Guardian’s bottom-up systematic approach to selecting the best companies within each sector becomes especially valuable, regardless of geography. Through the daily screening of company fundamentals across more than 2,100 stocks, we seek to isolate stock selection as the primary source of value added. While differences in local accounting standards make cross-border company comparisons difficult, our research shows that comparing the rate of change in company fundamentals within a global sector can add value.

We understand that markets are not always rational, so our model dynamically adjusts the factor weights as each factors’ relevance in a given economic environment changes. Yet prior to implementation, our portfolio management team discusses portfolio recommendations to ensure the model output is consistent and economically relevant.

Our Global Equity Strategies are managed as segregated accounts and are also available as a pooled fund.

Guardian manages fixed income portfolios based on two fundamental beliefs: that every decision should tend toward the Preservation of Capital, and that the opportunities and risks that exist within bond markets reward an Active Management approach. These beliefs are consistently applied across all our fixed income strategies including High Yield Bond mandates and Core Active portfolios that cover short-term, long duration and broad market mandates.

Preservation of Capital

In an effort to protect our clients´ capital, we focus our research, and naturally the portfolio that results from it, on high quality issuers. Our assessment of quality is based on internal credit analysis and a qualitative judgment based on our outlook. In addition to this bias for high quality, we approach the research process with a conservative mindset. This conservatism has meant that we do not rely solely on the credit rating agencies. While we do take their opinions into account, we believe that it is important to complete first hand research of the security covenants, company fundamentals, industry forces and legislation that might affect the security.

Active Management

We believe market volatility allows for an active approach to bond management that can add value over the long run, while helping to reduce risks in the portfolio. Our philosophy towards active management is based on three principles: a consideration of both capital gains and income in decision making; gradualism; and the incremental capturing of gains.

Our Fixed Income Strategies are managed as segregated accounts and are also available as pooled funds.

Through our diverse array of investment capabilities across equity and fixed income mandates, Guardian creates client customized multi-asset class balanced solutions.

Model solutions include:

The objective of the Guardian Capital Real Estate Fund is to preserve capital while providing investors with an annual net income distribution of approximately 6% to 8% through a diversified portfolio of direct Canadian real estate investments. This core portfolio will be comprised of small and mid-sized commercial (industrial, retail, office) and multi-residential properties in major Canadian markets. Our dedicated and experienced team of real estate professionals is responsible for all aspects of investment management that include deal sourcing, analyzing and selecting properties and evaluating appropriate exit strategies.

The niche acquisition strategy of the Guardian Capital Real Estate Fund is guided by several key investment principles:

• Acquisition price that is below replacement cost
• Proactive focus on off-market acquisitions
• Properties with functional features that provide flexibility for re-leasing arrangements or re-sale opportunities
• Inefficiencies in property ownership, property management and leasing
• Properties with rental income at or below market rates

The investment team’s active management and professional leasing capabilities will bring each acquired asset to an institutional standard of management and maintenance. Combined with the portfolio’s cap rate premium, we expect the Fund to have long term equity appreciation.

Guardian Capital’s breadth of investment capabilities and depth of portfolio management expertise allows us to offer customized solutions for achieving clients’ evolving needs. Some examples of customized strategies include managing liability-focused fixed income mandates to match duration and/or cashflow requirements and diversified dividend portfolios based on investors’ yield requirements.

Please contact us to discuss how Guardian can work with you to create a customized solution to achieve your unique investment requirements.