Institutional Asset Management: Pensions, Foundations and Endowments

Toron offers global equity, global balanced and Canadian equity portfolios. Each institutional client’s portfolio is built to reflect return objectives, risk profile and taxable status. Our objective is to build long-term relationships with our institutional clients through regular direct contact.

Investment Philosophy

“Superior long-term investment results are grounded in disciplined security-specific fundamental research.”

Toron’s primary goal is to grow our clients’ investment capital in a low-risk manner. We do this in 2 ways:

  1. Risk management
  2. Disciplined security selection

Risk Management & Portfolio Construction – Collection of Best-in-Class

At Toron, everything starts with risk assessment and management. To aim for superior results with the least amount of risk, we consider the impact of each security on the overall portfolio according to:

  • Geographic diversification
  • Industrial diversification
  • Currency diversification
  • Low business and statistical correlation between investments

Selecting Securities

We conduct proprietary, independent research.

We do not rely on research reports produced by investment dealers whose opinions may be swayed by factors other than the investment merits of a stock.

We base our investment decisions on a thorough assessment of a company, the industry in which it operates and its management team. We seek companies that demonstrate:

  • Best-in-Class Financials:
    • Outstanding fundamentals and strong balance sheets
    • Proven ability to generate strong free cash flow, enabling financial flexibility to reinvest in their businesses, make opportunistic acquisitions or pay dividends throughout a market cycle
  • Attractive Investment Valuation:
    • Trades at a discount to our estimation of its intrinsic value — priced incorrectly in market
    • We estimate intrinsic value using several Toron techniques highlighting margin of safety — protecting returns on the downside and providing opportunity for strong long-term returns
  • Proven Management:
    • Demonstrated track record of performing in various industry cycles
    • Achievement against stated business objectives
    • Ability to allocate capital advantageously
    • Strongly aligned interests with shareholders through ownership or tenure
  • Probable Growth Opportunities:
    • Identifiable growth opportunities to move to realize intrinsic value
    • Sustainable competitive advantage and industry leadership
  • Shareholder-Friendly Policies:
    • Historically, companies with shareholder-friendly processes, customs and policies are rewarded with capital — and ultimately a higher share price

Benchmark Agnostic

Toron’s portfolios are concentrated, holding between 30 and 40 equity investments. Toron portfolios are collections of best-in-class businesses: each investment must stand alone on its own investment merits and must be a judicious use of our clients’ capital.

Toron does not believe in benchmark indexes as investment portfolios.

Toron portfolios are collections of best-in-class businesses.

Client Service & Reporting

Institutional clients receive:

  • Monthly portfolio valuations, transactions and performance reports
  • Formal quarterly meetings to discuss investment policy, strategy, performance and capital market conditions
  • 24/7 password-protected account access, with complete portfolio holdings and valuations on a daily basis

We always encourage impromptu meetings and are easily accessible to our clients.

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