What Active Management Means to Us
CI Multi-Asset Management embraces the philosophy of active management and we apply it to all aspects of our investment process. We view active management as a process that strives to identify and manage all the variables that can influence an investor’s total return, with the goal of obtaining the best long-term results. Active management is not simply about stock selection. There is also opportunity to generate incremental excess returns from active asset allocation. In the portfolio construction process, we also closely examine other factors that can impact returns including industry, country and style exposures.
Our philosophy is centered on delivering predictable outcomes through a disciplined portfolio construction process. We take a controlled risk budgeting approach which aims to generate consistent returns to satisfy the financial objectives of our unit holders within their investment horizons.
CI Multi-Asset Management believes it is critical to have a clear understanding of valuations, fundamentals and correlations in order to construct and manage efficient portfolios. A portfolio that combines asset classes exhibiting negative or weak correlations with each other has a greater opportunity to potentially improve risk-adjusted returns. Using a multi-asset-class framework may offer the opportunity to benefit from imperfect correlations.
- Strategic asset allocation: The team uses strategic asset allocation to construct each portfolio and regularly reviews the strategic asset mix to ensure that it is reflective of the evolving market environment. This asset mix is designed to maximize returns for a given level of risk over the long term. Relying on our comprehensive research, we formulate capital markets expectations driven by valuations and fundamentals. We also utilize research from State Street Global Advisors (SSGA), a global investment manager with over US$2.8 trillion in assets under management (as of September 30, 2018).
- Tactical asset allocation: The team will adjust certain portfolios, where appropriate, to take advantage of shorter-term dislocations in the market
- Option strategies: From time to time, CI Multi-Asset Management may employ options strategies to implement asset allocation strategies and to generate incremental yield.
The type of risk that matters most to investors is the risk of permanent loss. CI Multi-Asset Management employs a number of risk-management tools dedicated to managing specific risks. These tools include:
- Currency Management: Given the unpredictable nature of currency markets, CI Multi-Asset Management regards foreign currencies as a meaningful source of portfolio risk, which is best managed using a disciplined, valuation-based framework. The team also views the U.S. dollar as a risk-management tool that can help to offset equity risk.
- Portfolio Rebalancing: Regularly rebalancing the portfolio to the original strategic allocation helps to maintain a consistent risk profile.
- Sector Exposure Management: CI Multi-Asset Management tracks the true sector exposures of each portfolio. Through sector diversification, the team ensures that the overall beta is controlled and that investors are not overly exposed to a narrow group of sectors.
- Market Risk Management: When global equity valuations are at excessively high levels and traditional measures alone may not provide sufficient downside protection, the team may employ portfolio insurance strategies using derivatives while paying close attention to the implicit and explicit costs of these strategies.
Manager and Active Exchange Traded Fund (ETF) Selection
Numerous studies point to the existence of substantial market inefficiencies at the security and factor level that can often be exploited to generate alpha over the long term. CI Multi-Asset Management accesses a broad range of active managers and exchange-traded funds to add value.
CI Multi-Asset Management is responsible for the construction and management of CI Investments’ managed solutions programs. Based in Toronto, the team oversees approximately $38 billion in assets* invested in customized managed portfolio solutions for individuals, families and businesses.
Alfred Lam, CFA
Senior Vice-President and Chief Investment Officer
Alfred Lam, CFA, Senior Vice-President and Chief Investment Officer, leads CI Multi-Asset Management and is head of the team’s Investment Committee. Mr. Lam has over 18 years of experience specializing in portfolio design, asset allocation, manager and fund selection, and risk management. While at CI, Mr. Lam has brought unique ideas and processes to the management of the team’s multi-asset strategies, including a mean-reversion currency management strategy, the concept of investing in concentrated and benchmark-agnostic portfolios, and a new approach to risk management. In addition to the CFA designation, Mr. Lam holds an MBA from York University’s Schulich School of Business, and is a member of the CFA Institute and the Toronto CFA Society.
Stephen Lingard, CFA
Senior Portfolio Manager and Head of Investment Research
Stephen Lingard, Senior Portfolio Manager and Head of Investment Research, joined the CI Multi-Asset Management team in 2019. He is the lead manager of CI Mosaic ETF Portfolios and other mandates and a member of the CI Multi-Asset Management Investment Committee. Mr. Lingard has over 24 years of industry experience, including more than a decade as a senior portfolio manager at another diversified Canadian asset manager, where he managed multi-asset portfolio programs. Mr. Lingard has also managed institutional accounts for several global clients and held a variety of investment positions in organizations in Europe, Asia and the United States. Mr. Lingard holds a Bachelor of Science degree from Western University, an MBA from the EU Business School and the Chartered Financial Analyst designation. He is a member of the Toronto Society of Financial Analysts.
Marchello Holditch, CFA, CAIA
Marchello Holditch, CFA, Vice-President and Portfolio Manager, assists in the management of CI's multi-manager, multi-asset investment programs. He is responsible for CI’s institutional and private client multi-asset portfolios and is a member of the CI Multi-Asset Management Investment Committee. Previously, Mr. Holditch led CI’s portfolio manager research and oversight function, where he was responsible for evaluating the investment managers of all CI funds. Prior to joining CI, Mr. Holditch worked at a major global consulting firm, where he assisted a wide variety of institutional clients with risk budgeting and asset liability modelling, as well as investment manager research and selection. He holds an Honours Bachelor of Mathematics degree in actuarial science from the University of Waterloo and is a CFA charter holder.
Andrew Ashworth, MBA, CFA
Associate Portfolio Manager
Zoe Li, CPA
Portfolio Operations Associate
State Street Global Advisors (“SSGA”) is the investment management division of State Street Corporation and provides research and recommendations to CI Multi-Asset Management, through its Investments Solutions Group. SSGA is not affiliated with CI Investments Inc. or any of its affiliates.