We pride ourselves on collaborating with our clients to fully understand their specific business, industry, regulatory, and reporting requirements.
Initial asset allocation is the MOST important decision the client and investment manager make together. Rather than taking a one-size fits all approach, Performa’s asset allocation process begins with the client. By focusing on client specific characteristics such as: risk tolerance, liquidity profile, and regulatory requirements, Performa’s investment solutions are tailored to each individual client.
At Performa, our core investment grade fixed income and equity management approach is grounded in our philosophy of capital preservation, value orientation and active management. We seek to understand our clients’ unique investment objectives, risk profile, and liquidity needs to identify the best strategic investment allocations for the individual client. Our investment process for both fixed income and equity strategies benefits from our top-down views, as well as our fundamental research capabilities, to allow exposure to the most compelling part of a company’s capital structure.
For clients seeking diversification and liquidity, we offer our internally managed funds. We also deliver separate account solutions when portfolio needs require a customized investment portfolio solution.
For our Asset Allocation clients, we combine our expertise in core equity and fixed income investment management with more specialized strategies such as high yield bonds, global equities and small cap equities. These strategies are typically sub-advised or externally managed by firms that share our investment philosophy and understand our clients.
No matter the individual strategy, we take great pride in our ability to be nimble, contrarian, and decisive so that our clients can benefit from the ever changing investment landscape.
For many of our Clients, the core fixed income allocation represents the anchor within a diversified portfolio. As such, capital preservation is our primary goal when managing investment grade mandates. Success to us is generating absolute, positive returns and outperforming benchmarks over intermediate to long-term market cycles. To this end, our investment team focuses on fixed income investment risks such as interest rate changes, credit quality deterioration, and the liquidity environment with the objective of eliminating the possibility of impairments within portfolios. Our investment process for fixed income strategies starts with a top-down perspective on interest rate and fixed income sector exposure. We then employ our own fundamental, security specific research to select individual portfolio positions.
Whether a client invests their regulatory capital in core fixed income or uses the allocation to fund liabilities, maintaining the right ongoing liquidity structure at both the market and client levels is essential to achieving their objectives. Even the best-executed investment ideas can turn from gains to losses when unexpected liquidity needs arise, especially during times when markets are challenging. In the construction process, we assess portfolio liquidity under stressed scenarios and aim to provide each client the peace of mind that their fixed income allocations will cover them for any unexpected cash needs, regardless of how difficult the market environment may be.
We believe that core equity management should generate long-term capital appreciation with less fluctuation than the broader equity markets. Our equity investment process represents a patient and value based approach. We will not invest in sectors or companies that we deem expensive and we stay disciplined with our buy and sell valuation targets.
Our patience within equity investing is a by-product of the top-down, macro portion of our firm’s overall investment process. We also use comprehensive, fundamental research analysis to identify companies whose shares trade at compelling valuations relative to their peers or the market. While there are many different factors within our evaluation process, some characteristics that we consider important are: a company’s intrinsic value; its current growth possibilities and catalysts for positive change; the standing within a company’s respective industry; management’s style and experience; shareholder treatment and the prospects for a company to remain financially secure.
In summary, we believe that creating a portfolio of shares that offer attractive valuations, good corporate prospects and dividend income is the right combination that should create long-term success for our clients. By staying disciplined in our valuation targets and investing cash when we feel prices are right, our portfolios have the potential for outperforming in down markets – consistent with our firm-wide focus on capital preservation and eliminating impairments.