The Canadian Low Volatility (London Capital) strategy was built for times like these – and investors are reaping the benefits

The Canadian Low Volatility (London Capital) fund offers an alternative for investors seeking capital preservation and low volatility, while still needing the long-term growth prospects of equities to meet their future goals.

As we continue through the last stages of the market cycle, heightened volatility (as we experienced in December and the end of May) is common, even normal, as markets respond to world trade talks and a more modest pace for corporate earnings growth. But that doesn’t make it any easier for investors experiencing the sharp ups and downs of their investments’ returns. As a result, investors are often tempted to move away from their long-term investment plans and abandon their equity exposure in search of calmer waters in fixed-income funds or cash.

“Our investment process is very robust and reaps the benefits of quantitative analysis of key fundamental stock factors. We are seeing the results of that play out. This fund is delivering on what it was designed to do,” says Pei Li, Manager, Equities at GLC Asset Management Group who along with Robert Lee, Vice-President, Equities are lead portfolio managers of the Canadian Low Volatility (London Capital) mandate. 

Table showing Canadian Low Volatility (London Capital) has lower standard deviation, only 30% downside capture and 3.4% dividend yield from only 30 targeted holdings.

*As of June 4, 2019, unless otherwise noted.

Consider the Canadian Low Volatility (London Capital) portfolio strategy to reduce overall portfolio risk and provide downside protection while retaining meaningful potential for growth and returns, regardless of the market cycle. It’s a well-diversified Canadian portfolio of low beta, high-quality stocks that can help investors stay on track to their goals with better capital preservation in a downturn, and a smoother ride overall.

Visit GLC’s Canadian Low Volatility (London Capital) page to learn more.

Copyright 2019 GLC. You may not reproduce, distribute, or otherwise use any of this article without the prior written consent of GLC Asset Management Group Ltd. (GLC).

This commentary represents GLC’s views at the date of publication, which are subject to change without notice. Furthermore, there can be no assurance that any trends described in this material will continue or that forecasts will occur; economic and market conditions change frequently. This commentary is intended as a general source of information and is not intended to be a solicitation to buy or sell specific investments, nor tax or legal advice. Before making any investment decision, prospective investors should carefully review the relevant offering documents and seek input from their advisor.