Maurice Conti of Heward Investment Management is part of Wealth Professional Canada's Portfolio Management Powerhouses 2017
Vice-president and portfolio manager
HEWARD INVESTMENT MANAGEMENT
Years in the industry: 30
Years as a PM: 20
Typical clients: Private clients, family holding companies, institutions and charitable organizations
Three decades in the business have allowed Maurice Conti to gain a strong sense of what Canadians need and expect from an investment advisor. The main concern for clients, especially baby boomers, is having enough income to sustain them through retirement, but balancing that goal with a desire for returns is sometimes a difficult proposition. “Educating clients on reasonable return expectations can be challenging,” Conti says. “It can be a challenge to provide decent returns for relatively conservative portfolios, to provide adequate income returns in a low-interest- rate environment and to keep ahead of benchmarks.”
Beating benchmarks is easier in some years than others, and 2016 was certainly a test for PMs in Canada. “In 2016, our portfolios were geared towards Canada; now, we foresee a reduction in Canada in 2017,” Conti says. “We are reducing exposure to US markets and increasing exposure outside North America and to more economically sensitive sectors.”
When it comes to fixed income, Conti has favoured provincial and corporate bonds, supplementing bond holdings with preferred shares, select high-yield stocks and alternatives, as well as REITs.
In contrast to many of his peers, he believes the current bull market still has plenty of legs left. “We subscribe to the old adage that bull markets never die of old age,” he says. “This recovery has been well below normal rates. We have not seen a year – maybe a quarter or two – in which GDP growth approached 3.5% to 4.5%. Therefore, it should last longer, possibly setting a new record for a bull market cycle.”
HEWARD INVESTMENT MANAGEMENT
Years in the industry: 30
Years as a PM: 20
Typical clients: Private clients, family holding companies, institutions and charitable organizations
Three decades in the business have allowed Maurice Conti to gain a strong sense of what Canadians need and expect from an investment advisor. The main concern for clients, especially baby boomers, is having enough income to sustain them through retirement, but balancing that goal with a desire for returns is sometimes a difficult proposition. “Educating clients on reasonable return expectations can be challenging,” Conti says. “It can be a challenge to provide decent returns for relatively conservative portfolios, to provide adequate income returns in a low-interest- rate environment and to keep ahead of benchmarks.”
Beating benchmarks is easier in some years than others, and 2016 was certainly a test for PMs in Canada. “In 2016, our portfolios were geared towards Canada; now, we foresee a reduction in Canada in 2017,” Conti says. “We are reducing exposure to US markets and increasing exposure outside North America and to more economically sensitive sectors.”
When it comes to fixed income, Conti has favoured provincial and corporate bonds, supplementing bond holdings with preferred shares, select high-yield stocks and alternatives, as well as REITs.
In contrast to many of his peers, he believes the current bull market still has plenty of legs left. “We subscribe to the old adage that bull markets never die of old age,” he says. “This recovery has been well below normal rates. We have not seen a year – maybe a quarter or two – in which GDP growth approached 3.5% to 4.5%. Therefore, it should last longer, possibly setting a new record for a bull market cycle.”
