Investment Philosophy and Research
Our Investment Philosophy
Meeting a lifetime of objectives
The philosophy behind the Defined Objectives™ wealth management framework also underpins our approach to managing investment portfolios. Rather than simply allowing low risk to dictate low returns, PWL Capital sets clear investment objectives and employs proactive strategies to pursue them. These Strategies are based on the investment science of Nobel Prize-winning Modern Portfolio Theory and asset pricing models developed by Eugene Fama at the University of Chicago and Kenneth French at Dartmouth University.
Adding Investment Value; Reducing Investment Risk
PWL takes a conservative, long term view to managing investments and reducing investment risk. The PWL approach is anchored on the Efficient Market Hypothesis which demonstrates that active managers (stock pickers) cannot consistently beat market indices over time, using either fundamental or technical analysis.
Markets, not managers, produce returns. PWL’s investment research consists of a top down analysis of 12 markets differentiated by countries, company capitalization (large/mid/small) and a value tilt. We evaluate markets applying our proprietary valuation model which identifies classes trading at discounts and premiums.
PWL portfolios are constructed using low cost index based pools (ETF’s) containing the securities of each asset class, thus capturing market return with the least amount of risk. We also use tax-deferral and portfolio rebalancing strategies to maximize risk-adjusted returns.
Research
At PWL Capital we do not push products or have any hidden fees; so you get unbiased advice. No hype. Just solid common sense.
The PWL Capital research department advises portfolio managers and advisors on investment strategies. It also advises PWL Capital’s Investment Committee on portfolio construction guidelines and innovation.
- Focuses on asset class research, including cost of capital monitoring
- Conducts financial analysis and fundamental research on list of approved securities eg: Income Trusts.
- Consolidates external research from respected sources which are drawn from academia and data services such as Bloomberg
- Conducts on site management visits
- Prepares monthly report on capital markets
- Authors white papers and position papers as well as topical articles and bulletins
Raymond Kerzerho, CFA
Director of Research
Raymond is the Director of Research at PWL Capital. He has spent a large part of his career managing bond and derivative product portfolios for pension funds, mutual funds and for a major bank. He holds degrees from HEC Montreal (B.B.A.) and Laval University (MBA) and has earned the Chartered Financial Analyst (CFA) designation. Raymond’s mission is to maximize clients’ risk-adjusted return by applying his in-depth knowledge of the capital markets.
Raymond chairs the PWL Capital Investment Committee. Over the years Raymond has authored numerous articles, white papers and economic commentaries. He is sought-out by members of the media as a trusted and knowledgeable source on capital markets.
François Doyon La Rochelle
Financial Analyst and Portfolio Manager
François Doyon La Rochelle is a Financial Analyst and Associate Portfolio Manager at PWL Capital since 2001. Prior to joining PWL Capital, François has held various investment related positions in a leading Canadian wealth management firm. François holds a Bachelor in Business Administration (B.B.A.) from the Université du Québec in Hull and holds the Chartered Financial Analyst (CFA) designation.
François brings his diligence and thoughtful approach to building clients’ customized portfolios. He consistently reviews these portfolios to ensure they fit the PWL investment philosophy and the clients’ defined objectives.
PWL Investment Committee
The Investment Committee is comprised of Portfolio Managers, Associate Portfolio Managers, and Investment Advisors. The Committee establishes policies and procedures for all investment instruments and sets firm-wide investment guidelines including:
- strategic asset mix
- model portfolios
- authorized securities list
- rebalancing recommendations
The committee reviews portfolios on a regular basis, with input from members of the research department.
Investment Advisors
Investment Advisors are responsible for understanding the objectives and constraints of the investor and properly translating these objectives and constraints into an appropriate investment policy. They also continuously make sure that this investment policy remains appropriate given the investor’s evolving needs and circumstances. Investment Advisors sometimes cumulate the portfolio manager’s functions.
Portfolio Manager
The Portfolio Manager is ultimately responsible for implementing client portfolios based on the investor’s specific circumstance and guidelines provided by the Investment Committee.
Compliance
The Corporate Compliance Officer is responsible to control all securities in the investor’s recommended investment portfolios and to ensure that their assets are managed according to their personal Investment Policy Statement.
Read more about compliance and our internal controls here.