Asset Management

An institutional-calibre investment approach for wealthy individuals, foundations and endowments

Patrimonica Asset Management stands out through its meticulous, holistic approach. We act as a chief investment officer for wealthy families, foundations and endowments. We coordinate and supervise portfolio management in keeping with our principles of objectivity, independence, integrity and transparency. Our business model also ensures that our interests are aligned with those of our clients, as our compensation comes solely from our fees. We accept three types of portfolio management mandates:

Optimal, flexible portfolio management tailored to your needs

AN INNOVATIVE INSTITUTIONAL-CALIBRE APPROACH

The aim of this approach is to grow our clients’ portfolios while rigorously controlling risk. We rely on customized asset allocation, a full range of traditional and alternative strategies, and a proven process for selecting the best managers and monitoring their performances on an ongoing basis.

We set ourselves apart by offering privileged access to alternative strategies, particularly in the following asset classes: 

  • Hedge funds

  • Private real estate

  • Private infrastructure

  • Private equity

  • Private debt

Our areas of expertise

  • Defining an appropriate strategic asset allocation is the core of an investment policy statement. It is based on your risk tolerance, investment horizon and objectives.

    The allocation is defined in terms of target allocations to specific asset classes, with allowable variances. These variances provide tolerances for periodic deviations from the target allocations based on long-term objectives.

    Strategic asset allocation can be thought of as the investment equivalent of a flight plan, i.e. a path chosen to get from point A to point B.

    Tactical asset allocation is similar to in-flight decisions pilots make, such as deviating from the plan to avoid bad weather. In the same way, a manager may decide to keep an asset class at the minimum or maximum threshold, depending on the outlook.

    Strategic asset allocation, with its long-term outlook, differs from tactical asset allocation. The latter tends to be associated with a short-term deviation from the long-term objective in order to seize an opportunity identified by managers with the aim of improving returns or reducing risks. Over a long time horizon, strategic asset allocation should be a dominant factor in achieving portfolio returns.

  • Our goal is to identify and recommend portfolio managers with a demonstrated ability to practice their sound investment philosophy with rigour and consistency over multiple market cycles.

    We select managers based on our assessment of their ability to adhere to their critical success factors over time.

    We focus on risk management and cost/value-added ratios. If no manager meets our requirements for a specific mandate, we will opt for a passive strategy.

  • Our philosophy is based on the following principles:

    1. With capital preservation as a primary objective, tactical decisions are focused on risk management rather than opportunism.

    2. Rebalancing responsibly, but not excessively, can minimize transaction costs.

    3. The selection of specialized managers should add significant value over time.

    We believe that an appropriate, well-defined strategic asset allocation is the foundation for building a portfolio that combines best-in-class managers of both traditional and non-traditional asset classes. This approach supports the achievement of long-term objectives.

  • Our clients benefit from state-of-the-art technology that enables them to obtain detailed information reports for both traditional and non-traditional investments. Patrimonica uses best practice reporting. Returns are net of fees and compared to globally recognized benchmarks. The platform used also gives clients access to this information in real time, via a secure cloud-based app.

  • We focus on after-tax returns. Portfolio decisions with major tax implications are carefully considered in terms of potential returns and relative risk. Our team works closely with our firm’s tax experts to develop strategies for optimizing or potentially deferring taxes.

Our asset management convictions

Asset allocation is the key to optimal portfolio management

We believe that the best way to help our clients achieve their goals is to focus on the right asset allocation, while fully aligning it with their risk tolerance and financial needs.

Due diligence and governance instill essential discipline

Applying sound policies and governance, while ensuring the extensive due diligence of managers, helps us avoid a number of potential pitfalls. These benchmarks enable us to count on reliable managers who stay true to their style and can deliver added value over the long term.

Management fees are a key factor to take into account

We can’t control the financial markets, but we do have direct control over the management fees of the managers we hire. Given the size of the assets we manage, we’re able to firmly negotiate our approved managers’ fees, increasing our chances of delivering added value to our clients compared with the benchmarks.

A solid yet flexible investment structure guarantees long-term success

This enables us to invest in the best managers. Leveraging diversified portfolios and a cluster of proven strategies improves our chances of generating performances in line with your expectations, regardless of your financial situation or market environment.

“ Our goal is to provide our families with institutional-calibre investment solutions at an ultra-competitive cost and allow them to benefit from a scientific approach to portfolio construction. We proactively try to align their long-term objectives with their short-term reality. ”

— Dimitri Douaire, Chief Investment Officer

Patrimonica acts as a chief investment officer, leveraging its open-architecture investment platform to select the best external portfolio managers. Our service offering stands out through its flexibility and ability to meet the varied and often complex needs of our clients.

Our team will make investment decisions on an ongoing basis, in accordance with your investment objectives and restrictions. We will work with you to determine your asset allocation and adjust your portfolio composition in response to market conditions and the macroeconomic outlook.

Discretionary Management

Non-discretionary Management

If you opt for this service, we will guide you in your investment decisions by providing you with sound advice. In addition to benefiting from our support and investment expertise, you can count on the firm’s list of fund recommendations. Our team will propose a list of managers who meet our stringent selection criteria.

Portfolio supervision

This service complements our two other types of portfolio management services: discretionary and non-discretionary. It involves reconciling information on your various investments in a consolidated financial report, giving you a global view of your investment portfolios.

An experienced investment committee

It’s important to us and to our clients that independent professionals validate the strategies we recommend. The team is supported by an experienced investment committee. Our external committee members have varied and complementary areas of expertise, and over a century of investment experience combined.

Our Investment Committee

Internal members: Diane Henry, Mark-Olivier McNulty, Normand Coulombe and Dimitri Douaire
External members: Marc-André Binette, Michel Lemieux, Claude Caty and Karinne Bouchard

We understand what makes the best portfolio managers

We select talented and motivated managers following in-depth research and analysis based on precise qualitative and quantitative criteria:

  • Rigorous, disciplined approach

  • Consistent investment philosophy

  • Proven track record

  • Exemplary behaviour

  • Team stability

  • Alignment of interests

  • No potential conflicts of interest

  • Potential fit with existing strategies

What sets us apart

Customized approach and investment strategy integrated into your overall financial planning

Proactive risk management to preserve and grow your capital

·Institutional portfolio management 

Preferred management fees due to the structure and size of our assets under management

Rigorous manager selection process with ongoing monitoring

Real-time overview of all your financial assets via our web portal, which uses advanced technology