Guardian Capital Advisors LP Our Investment Process
Trust is the main foundation in any relationship. We understand that entrusting your assets to Guardian Capital Advisors is a major commitment. We treat this relationship as a partnership: your interests are our interests, and we will not jeopardize your trust in any way. Meanwhile, we believe our long-term experience in the capital markets – and the discipline we provide in constructing portfolios – gives us an edge in achieving your goals. In other words, your trust is well invested with us.
Asset Mix
Allocation Process
The asset mix decision is one of the most important components in designing an appropriate Investment Program for private investors. We begin the process by incorporating capital market return expectations and the risk tolerance of each of our Clients – captured in our detailed Client Profile document. From here, we determine which asset classes are the most appropriate to deliver the desired results – and then weight these asset classes accordingly to achieve the overall objectives.
Each Client´s asset mix is implemented around the specific characteristics of the Client, and every Investment Program is an evolving process. As Client circumstances change over time, the asset class exposure and allocation are likely to change as well. Understanding our Clients’ objectives, requirements, needs, risk tolerance and “wishes” are at the heart of what we do. It is a partnership between our Client and the Portfolio Manager.
Stocks
Decision-Making Process
We are fundamentalists insomuch as our investment decisions are based on fundamental data of the markets and individual companies. We incorporate two main themes: first, we combine the best attributes of both a top-down overlay of macro and micro trends (e.g., interest rates, inflation, supply/demand factors, flow of funds, relative asset class comparisons, etc.) with a bottom-up security selection analysis (e.g., corporate balance sheets, earnings statements, management business plans, competitive and regulatory environments, barriers to entry, uniqueness of the product or service, etc.).
The second theme is global. In a converging global economy, national barriers are evaporating, even as the number of industries and companies operating around the world is increasing all the time. Comparing companies in the same industry, regardless of geography, is necessary to provide the best risk/reward trade-off.
Stocks
Screening Process
Guardian Capital has developed a dynamic, highly refined proprietary framework for identifying attractive companies/stocks, within each of the ten economic sectors around the world. The screening process uses fundamental variables and “classifies” each stock within each sector ranked as a “Buy”, “Hold” or “Sell”. The Guardian Capital stock universe consists of over 3200 stocks around the world.
Stocks
Portfolio Construction
From our proprietary ranking process, each Portfolio Manager will select from the “best of breed” companies/stocks within each sector, and will weight those stocks according to the conviction of each Portfolio Manager and the ability of the stock to provide appropriate diversification and deliver above-average results. Each stock portfolio has built-in guidelines to ensure appropriate diversification.
Bonds
Decision-Making Process
Our primary focus is on selecting investment-grade corporate bonds for this segment of a Client’s portfolio. This sector of the fixed-income market provides an attractive risk/reward trade-off, and also provides an above-average income stream. Members of the Guardian Capital Investment Committee are responsible for researching, evaluating and selecting corporate bonds to provide a well-diversified portfolio for the fixed-income component of our Clients’ Investment Programs. Each bond portfolio has built-in guidelines to ensure appropriate diversification.