The Signature investment philosophy is designed to deliver the best possible risk-adjusted returns in today’s complex environment and is based on these key elements:
The globalization of the world economy has resulted in increased complexity, requiring specialized knowledge.
- Signature has dedicated global equity sector specialists and fixed-income asset class specialists, supported by global strategists.
- Signature has developed its global capabilities over the past decade to take advantage of investment opportunities not available in the Canadian market.
The increased interconnectivity of the global economy demands collaboration.
- Signature has recognized that the various segments of the global financial markets (interest rates, credit, foreign exchange, equities, commodities and real estate) are increasingly interconnected, and it’s essential for portfolio managers to understand these connections and their implications for the economy, industries and companies.
- Signature equity and income specialists collaborate regularly to develop a comprehensive view of the markets and individual securities.
Security selection process
Signature develops a comprehensive global outlook, factoring in economic growth, interest rates, capital market conditions and geopolitical tensions. The Signature asset allocation team determines the appropriate risk profile given this outlook and allocates capital to various asset classes.
Security selection (equities and fixed income)
Signature’s global outlook is used to determine sector allocations within the equity and fixed-income portfolios. Within the equity portfolios, sector specialists use a variety of analytical approaches that best fit their global industry sectors. In managing fixed-income portfolios, risk controls and preserving capital are critical considerations. All positions are subject to continuous monitoring. In constructing portfolios, Signature’s managers favour a flexible approach that give them the greatest opportunities to add value and protect capital.
As a Canadian-based investment manager with global capabilities, Signature recognizes the importance of currency movements to the returns experienced by Canadian investors. Signature’s active management of its portfolios’ exposure to foreign currencies through hedging is a key element in managing risk and protecting the funds’ returns.