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Investment Approach-
Overview of Our Investment Beliefs and Style
Legg Mason Canada brings the advantage of a diversified and global perspective as we offer various affiliate managed solutions with value, core and growth orientations.
Adapting to the Environment
The Next Decade Presents A Very Different Investment Landscape
- Stocks and bonds began the cycle with rich valuations
- Interest rates are likely to be relatively trendless but volatile within a range
- Given the low level of bond yields and lower nominal GDP growth, single digit investment returns are likely
- Stock and bond returns should revert to a more normal pattern of negative correlation
Strategic Implications
- Reversion to "normal" correlation between stocks and bonds will shape investment process
- Tactical dynamic asset allocation strategies will play a central role
- Increased adoption of an asset/liability management approach will lead to more tailored strategies
- Total return objectives will gain acceptance relative to static policy portfolios and passive index strategies
- Expected returns on policy portfolios unlikely to meet the return targets
- Greater focus on risk management techniques overall
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