Our goal is to deliver superior returns for investors. Defining “superior returns” is specific to each investor’s objectives and thus we work with our clients to tailor their solution and understand their definition of success. We believe this is the most effective means of ensuring our clients achieve their long term goals.
Our investment approach is team based. All of the Bellwether strategies are guided by our Investment Committee which seeks to invest in high quality, compelling companies that have strong balance sheets with proven sustainable earnings and dividend growth.
Our fundamental belief is that growth in corporate profits and the resultant dividend growth will eventually lead to share price appreciation.
We strive to deliver superior results by:
- Staying focused on equity investments that trade in North America where we have significant expertise, solid information and can construct properly diversified portfolios.
- Consistently applying Bellwether’s proprietary Disciplined Dividend Growth investment process.
- Utilizing our extensive investment and business experience to make sound investment decisions.
Bellwether invests money with three guiding principles:
- Measuring the value of a stock is important, but our focus centres on profit and dividend growth.
- Market information is largely noise generated by an emotional response, whether fear or greed. To eliminate emotional decision-making, an investment process must be disciplined and consistently applied.
- Portfolio risk is managed by: diversifying across North American sectors; appropriate security selection; and effectively managing portfolio Beta. Beta management is a distinctly different element to our investment process.
Bellwether’s “Disciplined Dividend Growth” Investment Process
Fundamentally, we believe that increasing earnings and cashflow will lead to dividend growth which translates into share price appreciation.
Our process is Disciplined because we apply rigorous quantitative and qualitative methodologies used in the identification and selection of companies that have better than average valuations, a sustainable and growing dividend yield and balance sheet strength. The companies selected in our process are then combined in the construction of the Bellwether portfolios to ensure overall risk effectively managed.
Our process is Growth because we emphasize profit and dividend growth, which we invest in at reasonable valuations. Our definition of Dividend Growth investing focuses on the long term profitability of a company and applies extensive testing to ensure profits and dividends will continue to grow into the future.
- By consistently applying our disciplines, we ensure that our portfolios maintain their superior fundamental characteristics.
- Our process is a conservative approach to measuring the current value of future profitability.
The following diagram displays the Bellwether “Disciplined Dividend Growth” investment process and the steps taken to build our portfolios. We have conducted extensive research to develop our proprietary models to screen the 3,500+ companies in our universe.
This “Disciplined Dividend Growth” investment process enables our Investment Committee to make rational decisions on a consistent basis.