Willoughby Investment Pool

The Willoughby Investment Pool is a standalone balanced portfolio without the common restrictions generally found with conventional mutual funds and/or wrap accounts. The pool has the flexibility to employ a broad range of strategies with limited sector, security type, or geographic restrictions. A few examples include the pool’s option to hold growth and/or companies that are undervalued, different classes of ETFs, government bonds to high yield fixed income securities, securities of mature and emerging economies, and the portfolio has the ability to move entirely to cash if it sees fit.

WIP has a balanced mandate, made up of approximately 80% equities and 20% fixed income.  The equity portion has been designed to generate growth through its holdings of blue-chip, large-cap North American equities and specialty holdings managed by specialist investment managers.  The fixed income portion is invested in Canadian bonds and preferred shares to generate a more predictable return and reduce portfolio volatility and risk.

Given the portfolio’s discretionary management approach, investors benefit from the agility necessary to take advantage of time-sensitive opportunities particularly relevant in the current market environment. The portfolio uses a disciplined predetermined buy/sell approach in order to reduce risk and capture upside. This is based on fundamental criteria such as a minimum company size requirement, a company’s ten-year Earnings Per Share growth, a minimum return on equity and a minimum corporate profit margin to name a few. As general market direction has historically played a big part in results, the portfolio takes into account the trends of movement in security prices.

Minimum investment amounts may be applicable with the Willoughby Investment Pool.

Pool's Construction Process

In comparison to the Northgate Equity Strategy Pool, WIP contains 80% Equities and 20% Fixed Income.
  • Step 1. Build a Sandbox of North America's Best Companies

    • Using fundamental & technical analytics, we build a screening model to identify & shortlist large-cap, blue-chip US, Canadian and in special situations, select International stocks, that meet our general investment criteria.
    • We do this by screening for companies using our proprietary 12-factor scoring system
    • We seek out companies that have performed well during periods of declining stock prices
    • Through this process, we have identified the top 100 companies listed on US Exchanges and the top 75 companies in Canada as candidates for our portfolio
  • Step 2. Identify Portfolio Candidates

    • We screen for attractive P/E multiples, earnings growth, strong balance sheets, price momentum and other key metrics from specific sectors and industries to identify target companies
    • Next, we rank companies based on short-term performance (3 and 6 months)
    • Using this approach, we select the most fundamentally sound companies with strong 3 or 6-month performance from our candidate’s list
  • Step 3. Portfolio Construction

    • We cherry pick a diversified basket of stocks
    • Our primary goal in the equity portion of the portfolio is to minimize risk and volatility. To do this, we avoid “having all our eggs in one basket”. We don’t put too high a percentage in any sector but prefer a more diversified and balanced approach
    • We seek to purchase these companies at reasonable prices when they are in strong price uptrends and avoid
      companies in downtrends. Finding the right combination is the key to achieving the best return at the lowest level of risk
  • Step 4. Portfolio Maintenance

    • WIP is an actively managed portfolio
    • We use a disciplined risk management approach and exit stocks when price trends or fundamentals change
    • We constantly monitor our holdings to ensure they continue to meet our strict investment criteria. Company fundamentals change quarterly when companies report performance, but prices change daily and can often signal changes in the future direction of a company’s stock performance
    • When a company’s price trend changes, we revisit the fundamentals and make changes when potential problems or risk increases
    • To select replacements, we follow our process for stock selection (identify candidates, choose the best companies with strong price momentum and trends