JFL

Institutional Services

Global Solutions For Institutional Investors

 

A wide range of institutional investors have relied on Jarislowsky Fraser for nearly sixty years to protect and grow their assets. Our capabilities include international, global, U.S. and Canadian strategies to serve the diverse needs of institutional investors in the U.S., Canada and worldwide.

Jarislowsky Fraser manages the assets of more than 500 pension funds, foundations and endowments, corporations, universities, unions and governments — representing a total of US$24 billion in institutional assets under management. This demonstrates the depth of our experience in counseling institutional clients and in understanding the complexities of their financial obligations and requirements, including legal requirements, challenging performance obligations, risk management and governance.  

We offer two types of investment management to institutional investors:

  • Separate account management is offered for larger portfolios of more than $25 million.  Clients currently include pension plans, state governments, foundations and corporations.

  • Commingled Funds are designed for small to mid-sized pension plans, trusts, foundations, corporations and high net worth investors.  

 

Arrow

Investment Strategies

  • INTERNATIONAL EQUITIES
  • GLOBAL EQUITIES
  • U.S. EQUITIES
  • CANADIAN EQUITIES

International Equity Strategy: A “Global Leader” Focus

 

The international equity portfolio is comprised primarily of large multinational companies that demonstrate global leadership in their industry and have at least US$1 billion in market capitalization. These companies generally have steady growth rates, high returns on invested capital, dominant world market positions and strong balance sheets, reducing their financial risk.

Our approach targets companies that benefit from the above-average growth of foreign economies. Therefore, the emphasis is on non-cyclical companies in countries that offer a significant export advantage.

Companies must fulfill the following four tenets in order to be considered:

  • The industry in which the company participates should be growing faster than global GDP.
  • Leveraging of existing businesses to grow at least 10% per annum with products or services that allow the investment team to forecast earnings at least 3 to 5 years out. There must be high barriers to entry to competitors over that same timeframe.
  • A business strategy that is clear and understandable, and management must have a proven record of its successful execution.
  • Reasonable valuation levels relative to the company’s current and historical growth rates, its industry’s growth rate and that of a peer group. 

 

Solutions offered

  • Separate Account Management
    • International Equity (EAFE & All Countries ex-US benchmarks)
    • International Equity (ADR only)

Global Equity Strategy: A “High-Quality, Growth” Focus

 

Global equity management focuses primarily on large U.S. and multinational companies that demonstrate global leadership in their sector. These companies typically have steady growth rates, high returns on invested capital, dominant positions in world markets or their region and strong balance sheets to reduce financial risk.

Our approach targets U.S. and international companies that benefit from economies growing at a rate higher than global GDP and permit participation in core industries. The emphasis is on non-cyclical companies with a competitive advantage in their industry.

Companies must fulfill the following four tenets in order to be considered:

  • The industry in which the company participates should be growing faster than global GDP.
  • Leveraging of existing businesses to grow at least 10% per annum with products or services that allow the investment team to forecast earnings at least 3 to 5 years out. There must be high barriers to entry to competitors over that same timeframe.
  • A business strategy that is clear and understandable, and management must have a proven record of its successful execution.
  • Reasonable valuation levels relative to the company’s current and historical growth rates, its industry’s growth rate and that of a peer group. 

 

Solutions offered

  • Separate Account Management
    • Global Equity
    • Global Equity (All Countries)

U.S. Equity Strategy: A “Multinational Growth” Focus

 

The U.S. equity portfolio is comprised primarily of large multinationals that demonstrate global leadership in their industry. These companies generally have steady growth rates, high returns on invested capital, dominant world market positions and strong balance sheets, reducing their financial risk.  

As bottom-up investors, we make decisions based on fundamental research. We are long-term investors, requiring a clear and understandable business strategy and a proven record of its successful execution by the company’s management. Companies in which we invest should also have strong and ethical management with good governance. Being disciplined and risk-aware, we also require a reasonable valuation relative to current and historical growth rates, the industry’s growth rate and that of a peer group.

 

Solutions offered

  • Separate Account Management
    • U.S. Equity
    • U.S. Opportunity Strategy  

Canadian Equity Strategy: A "High-Quality Canadian Leaders" Perspective

 

Our Canadian equity management focuses on large, blue chip stocks, leaders with strong dividends and steady growth. We de-emphasize cyclical industries and diversify assets across different industries to reduce the concentration in sectors exposed to commodity prices.

Canadian equities are generally prudently divided into three risk categories:

Group 1 - More than half of the portfolio's assets include large capitalization, “blue-chip” leaders in non-cyclical industries.

Group 2 - Less than one-third of the portfolio includes cyclical leaders with international operations to limit geographical risk. These companies are purchased when we identify strong return opportunities.

Group 3 - Less than 15% of assets, consisting of higher risk companies which make up junior “growth” or special “value” situations.

The names we own tend to have steady growth, high returns on invested capital, a dominant position in their market and region and reduced balance sheet risk.

 

Solutions offered

  • Separate Account Management
    • Canadian Equity
    • Canadian Dividend Growth