Investment Style

Richmond’s core expertise is Canadian equity management with a “Growth at a Reasonable Price” style. Fred Pynn and Mike Quinn both have significant experience in managing Canadian equity portfolios and previously managed, together or individually, the Bissett Canadian Equity Fund from 1985 to 2008, as well as many other accounts on behalf of a broad range of clients including foundations, pension funds, mutual funds and high net worth individuals from across Canada.

 

Investment Objectives

Risk Mitigation – Broad diversification.

– Focus on superior fundamentals.

– Record of dividend increases.

Total Return – Long term capital appreciation through investment in income oriented equities.
Income Generation – Income is key in the current lower yield environment.

Key Investment Criteria

Income Generation – Most investments will provide an income payment or distribution.

– Yield level not as important as long term growth.

– Maximum of 10% of portfolio in non-payers allows for diversification.

Long Term Growth – History of balanced revenue, cash flow, earnings and dividend growth.

– Superior return on equity.

– Favourable reinvestment rate.

– History of returning funds to shareholders  through   dividend increases or stock purchases.

Balance Sheet Quality – Capital resources to finance growth and dividends.

– Low debt levels.

Management – Subjective assessment based on results.

Measurement of our Investment Success will be based on

– A rising income stream generated in the portfolio.

– Long term growth of Net Asset Value.

– Below market volatility of returns.

As a smaller firm, with assets under management of less than $300 million, Richmond portfolio managers will have the flexibility to manage the Richmond Equity Fund opportunistically and to take meaningful positions in micro-, small-, mid- and large-capitalization equities.