IPC Private Wealth Manager Insights
October 2018 PW Manager Insights
Our Director of Product Management, Paul Davidson, explains the rationale behind the introduction of our new Multi-Strategy Alternatives Mandate, while George Fox and Corrado Russo, managers of the hedge fund and global real estate components, discuss how their mandates fit into the new offering.
May 2018 PW Manager Insights
Boris Kovtunenko from Acadian Asset Management and James Lampard from Lincluden Investment Management share their perspectives on the market, while Wayne Gillespie, Director and Senior Portfolio Strategist weighs in and highlights the value of portfolio construction.
January 2018 PW Manager Insights
Sometimes quantitative modeling can feel like a black box. Tim provides some clarity by sharing an example of when a trend-following model recognized a potential downturn ahead of the herd. He also highlights how this approach can complement a portfolio and help mitigate risk. Mount Lucas Management is responsible for managing the North American Sector Rotation and Global Trend Strategy mandates.
This quarter, Kim shares what worked well following a recovery in the Energy sector. She also discusses e-commerce hype and how unique consumer experiences are revealing pockets of value within the retail sector. Sionna is responsible for managing the North American Value equities mandate.
October 2017 PW Manager Insights
Despite geo-political events such as the issues between North Korea and the United States, Tim notes that investor behaviour and market performance have surprisingly remained complacent. He also shares that forecasts of a recession are far from happening, as typical signs of a recession such as high oil prices or an inverted yield curve have not come to fruition. Tim also speaks to the value investors can gain from the sector rotation mandate during periods of downturn. Mount Lucas Management is responsible for managing the North American Sector Rotation and Global Trend Strategy mandates.
This quarter, Peter discusses how growth has outperformed value and how that affected the North American dividend fund. He also notes that despite interest rate hikes, stocks that normally would be affected by these are still performing, suggesting that there is more at play in the market. Peter also gives insight into why Lincluden’s approach and process remains focused on value and quality. Lincluden is responsible for managing the Canadian Dividend and North American Dividend mandates for IPC Private Wealth.
In seeking the best ideas for a concentrated portfolio, Mel mentions how they look to include companies with a strong competitive advantage and management process. He also talks about the shift that is occurring in the traditional Energy sector, and how the long term impacts of renewable energy, electric cars and energy efficiency may influence this sector. Mel ends with benefits that Sionna sees in looking beyond Canada for a broader sector selection in managing risk. Sionna is responsible for managing the North American Value equities mandate
July 2017 Market Monitor
Despite the slow-growing economy and a flattening yield curve, Tim notes that a potential North American recession is not coming. The Fed is concerned about inflation levels, he adds, and their gradual and cautious pace of interest rate increases may lead to some “bubbly” areas within the market. In this quarter’s interview, Tim also reiterates the power of a sector rotation strategy and discusses the rationale behind Mount Lucas’ decision to move out of Energy, thereby dodging a correction. Mount Lucas Management is responsible for managing the North American Sector Rotation and Global Trend Strategy mandates.
Steve Locke, Senior Vice President, Portfolio Manager and Head of Team at Mackenzie Investments offers his views on the Bank of Canada's rate decisions, the impact these will on us and the real estate market, as well as the importance of being selective and well diversified in fixed income. Mackenzie is responsible for managing the Canadian core fixed income and fixed income mandates.
In recent months there has been a shift from value investing to growth investing due to an artificially low interest rate environment. Mel cautions that while we cannot predict the future, value tends to outperform in the long term. He also discusses the volume of information that investors have access to through traditional and new media and explains Sionna’s approach to reducing the noise. And while it can be tempting for investors to place large, short term bets in the market, Mel advises the true and tried approach of diversification. Sionna is responsible for managing the North American Value equities mandate.
Fixed income is a key part of any balanced portfolio aiming to reduce volatility in the overall portfolio while still contributing to total return. Listen to Geoff speak about what could pose a challenge to investors in the upcoming year. In this interview, he explains the mechanics of the core plus fixed income component and how it provides downside protection during rising yields.
April 2017 PW Manager Insights
Since the election of Donald Trump as President of the U.S., the performance of the market has surprised observers. This is primarily because investors appear to be ignoring the risks and rewarding the potential positives. It is one reason why Lincluden remains cautious in their outlook. In our interview with Peter this quarter, he explains their strategy and shares why interest rate increases are expected to remain moderate. Rate increases, he adds, will be contingent on the strength of the economy. Peter also highlights some of the sectors that they are keeping a watchful eye on. Lincluden is responsible for managing the Canadian Dividend and North American Dividend mandates for IPC Private Wealth.
Investor optimism has shifted market performance such that the strength we saw in value stocks last year has since subsided. The markets are generally more expensive today and it is harder to find attractive names, explains Mel. Despite this, however, Sionna is uncovering pockets of value, while remaining cautious to factors such as interest rates, trade and geopolitical factors that influence risk. He also discusses the resilient approach that Sionna takes in their portfolios. Sionna is responsible for managing the North American Value equities mandate.
Confidence around the world has improved a lot, notes Tim. If this optimism turns into actual growth, he adds, the markets may likely see further growth. In this quarter’s interview, Tim discusses the positioning strategy for the mandates and explains why Mount Lucas is investing in the international and emerging markets and what this means for their portfolios. Mount Lucas Management is responsible for managing the North American Sector Rotation and Global Trend Strategy mandates.
January 2017 PW Manager Insights
Value, as an investment style, has struggled for several years. Mel Mariampillai discusses why this has been the case and how the mandate may react to the trend for pro-growth policies in the U.S. Mel explains why making bets on the future based on what one thinks might happen or on potential policy changes can be challenging. That’s why Sionna focuses on the fundamentals of a company to find those that offer true value. Looking ahead, he shares his outlook on global oil production, consumer debt in Canada, and potential regulatory changes as well as protectionist policies around the world that may impact share prices. Sionna is responsible for managing the Canadian and North American Value equities mandates.
In this audiocast, Tim Rudderow discusses the market’s surprising response to the recent U.S. election, and its potential effects on the Global Trend strategy. He also discusses the possible effects of protectionist policies in the U.S. and the potential consequences on international trade deals. He also touches on the consequences of upward pressure on inflation and its effect on commodities. Finally, Tim gives his perspective on the recent sell-off on bonds. Mount Lucas Management is responsible for managing the North American Sector Rotation and Global Trend Strategy mandates. As Mount Lucas is a quantitative manager, geopolitical events will not have a direct effect on how they manage their mandates. However, if market reactions become market trends, Mount Lucas’ quantitative models will react accordingly.
Until recently, yield has been a major factor driving investor sentiment. Peter explains how periods of changing sentiment can be viewed as periods of opportunity. Peter also discusses how increasing interest rates might affect our North American Dividend mandate. Finally, he highlights some sectors that might surprise us in 2017. Lincluden is responsible for managing the Canadian Dividend and North American Dividend mandates for IPC Private Wealth.