Security Selection

Our portfolio management team begins with a big picture assessment as part of a disciplined and well-researched approach. The process combines computerized analysis of quantifiable factors with judgement and intuition from decades of hands-on experience. While our computer models don't manage portfolios, they do provide the discipline and structure to assure that human decisions are strongly supported by a wealth of database research.

The Asset Allocation Committee meets monthly to determine the asset mix of portfolios, assessing a wide variety of indicators measured by proprietary research tools developed over several decades. In our discussions, we try to anticipate trends rather than wait for them to develop. Domestic and international stock and bond indices, currencies, and a number of broader economic indicators including money supply and inflation are all evaluated. We then decide which assets, markets and sectors to pursue - and which, just as importantly, to avoid.

With the types of assets targeted, the stock selection team next focuses on specific securities. Mulvihill follows about 800 Canadian publicly listed companies at any one time. A filtration process reduces that number to about 150 firms with whom investment managers speak in detail. Finally, the list is narrowed down to 30 or 40 companies in which we invest based on past and present achievements, and potential for growth. In the U.S. we screen more than 1,500 companies. Individual U.S. stocks are held in a client's portfolio.

Beyond North America, we select individual blue chip global companies which have their securities listed in the United States. We monitor these securities known as American Depository Receipts (ADR's) for over 350 global companies. For greater international diversification, we also offer the Mulvihill Global Equity Fund which includes both U.S. equities and global ADR's.

The Mulvihill approach to fixed income investing is equally disciplined and rooted in a broad financial perspective. The approach is based on an assessment of capital markets and a variety of economic factors, with a particular emphasis on inflation trends and U.S. developments, and their strong influence on interest rates in Canada.

Within this context, managers establish a preference for bond maturities (long, medium, or short), sectors (federal and provincial governments or corporate) and credit ratings (minimum single A), before choosing individual debt issues for portfolios. For greater diversification the Mulvihill Canadian Bond Fund is available.