Our investment process – disciplined and repeatable.

Our investment process – disciplined and repeatable

Investment markets change constantly, but our commitment to you and your investment goals will not waver. We use a “top-down” approach to determine the intermediate-term tactical adjustments to strategic asset allocation as well as sector and geographic portfolio weightings, analyzing the reward to risk possibilities for each asset class to achieve the ideal risk-adjusted return. Individual security selection uses a rules based quantitative investment approach. The principle behind this philosophy is to identify companies that best qualify for each investment model at a particular point in time in our dynamic world. Through analysis of a unique set of factors for each of the portfolios – valuation, dividend growth and sustainability factors for our income portfolios, or earnings growth and momentum factors for our growth portfolios – we are able to pinpoint such opportunities for further analysis. This approach effectively and efficiently helps us analyze a large universe of investment opportunities. Tying this in along with our macroeconomic focus provides our clients with the best of both worlds.

Investment Policy Statement
Macro-economic research
Securities screening and daily ranking
Individual security research
Adjusted asset allocation
Securities selection, addition and removals
Final portfolio dynamically adjusted for asset allocation and securities content

Whether your investible assets are $1 million or $50 million, you need to have a disciplined, repeatable investment process. Worth Allaye-Chan Investment Counsel uses constant macroeconomic review processes and a micro securities selection methodology to ensure disciplined, repeatable and highly competitive portfolios for individuals and institutions.

  • Defines the investment objectives and guidelines applicable to your portfolio
  • Reflects your objectives and risk tolerance
  • Creates a framework for a diversified asset mix
  • Provides transparent disclosure
  • Governs investment decisions the portfolio manager will make on a discretionary basis
  • Top-down look at economies with short- and long-term outlooks
  • Impact on asset allocation – exposure to cash, bonds, stocks – relative to the IPS target allocation
  • Impact on sector allocation – exposure to stocks within various sectors
  • Impact on fixed income duration – exposure within bonds to credit and term
  • Impact on currencies – exposure to non-Canadian dollar denominated investments
  • Quantitative analysis of stock universe (factors based investing)
    • A factor captures stock characteristics – e.g., value, growth, momentum
  • Value factors include valuation multiples – price/earnings, price/book, price/cash flow
  • Growth factors include earnings growth, positive earnings revisions, positive earnings surprises
  • Identify investment opportunities through analysis of a specific set of factors for each investment mandate – leads to more effective analysis of a broader investment universe
  • Disciplined approach to security selection
  • Due diligence for confirmation on buy and sell decisions
  • Continued monitoring of existing holdings
  • Corporate developments that may impact future profitability and/or forward estimates
  • Identify risks that might not be captured by quantitative analysis:
    • Customer or revenue concentration
    • Industry trends and changes
    • External factors that may impact future profitability
    • Debt covenants
    • Supply chain delays
    • Corporate governance and management changes

Dynamically adjusted for asset allocation and securities content.