Investing With Style
All investors - from individual investors to professional money managers - have their own investment style that suits their particular financial objectives. It's important to note that the style implemented in a portfolio will impact everything from risk to return and will determine the types of investments that will be held or avoided.
To provide added value to investors in a way that meets their risk/return profile, CIBC Global Asset Management employs the value, growth, growth at a reasonable price and core investing styles to the CIBC mutual funds and managed solutions they manage.
Value investing focuses on stocks that are undervalued, overlooked or ignored, but not permanently impaired. Value investors believe the market overreacts to good and bad news, causing stock price movements that do not correspond with the company's long-term fundamentals. This results in opportunities to buy at deflated prices.
Growth investing is a strategy whereby an investor seeks out stocks with good growth potential. Often, growth stocks are stocks of a company with above average growth in comparison to its industry or the overall market. This style carries the potential for high returns at a higher risk than other styles.
Growth At A Reasonable Price (GARP) combines value and growth investing. This hybrid style looks for growth potential and a reasonable price, choosing those companies that are slightly undervalued but still expected to have strong earnings growth. More conservative than a growth-oriented strategy, GARP investors are still looking for growth, but they don’t want to pay too much for it.
The core investing style seeks out companies considered to be the best all around, with no intentional style bias and no big variance to the benchmark index. As a result, the core approach tends to contain a mixture of both growth and value with the goal of providing consistent long-term value-added performance through bottom-up fundamental analysis, and consideration of macroeconomic factors.
CIBC Mutual Funds is one of Canada's largest mutual fund companies, and are managed by leading investment managers including CIBC Global Asset Management Inc. Your CIBC Wood Gundy Investment Advisor can help you find the investment style and solutions offered by CIBC Global Asset Management that suit your investment needs. To find out how we can help you, use our Find An Advisor tool to contact a CIBC Wood Gundy Investment Advisor near you.
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The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.