EdgePoint Wealth funds now under coverage

All funds are competitively priced and that's a good sign for future outperformance, says analyst Achilleas Taxildaris.

Achilleas Taxildaris 23 October, 2014 | 9:00PM Vishal Mansukhani, CFA
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Vishal Mansukhani: This is Vishal Mansukhani from Morningstar Research. Morningstar recently initiated coverage of funds offered by EdgePoint Wealth. Today with me, I have manager research analyst, Achilleas Taxildaris, to tell us a little bit about the firm.


Achilleas Taxildaris: EdgePoint is an investor-led boutique investment firm that was founded in 2008. Its founding members had previously worked together at Invesco Trimark, and that can be beneficial for a new firm as they have a proven process in their hands that they know very well.

Mansukhani: What is the philosophy behind the process?

Taxildaris: Yes, the managers are focusing on bottom-up research, and they try to identify quality firms that possess some sort of competitive advantage and at the same time trade at a discount to the estimated intrinsic value.

At the same time, the portfolio managers will manage fairly concentrated portfolios that are fully invested at all times and they will try to diversify by businesses. On the fixed income side, they will also follow the same process. They will avoid interest rate anticipation or management of the yield curve and focus on buying bonds from firms that have these solid fundamentals.

Mansukhani: What can one more asset manager bring to a saturated industry?

Taxildaris: EdgePoint, starting with a blank slate, introduced a set of core values that they’re bound to operate on [and those values] are very investor friendly. They strive for investment excellence with a very simple fund lineup, basically two strategies, global and domestic and resulting in four funds, the pure equity and the balanced version of these two strategies.

They have very good communication with investors. They have significant levels of co-investments in the funds that they manage and that helps align their interest with that of the end investor. As well, all of their funds are very competitively priced. That's always a good sign for future outperformance. All these elements together result in solid offerings for the end investor.

Mansukhani: Thanks for that, Achilleas.

Taxildaris: You’re welcome.

Mansukhani: For more information, please visit Morningstar.ca. Thank you.

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About Author

Achilleas Taxildaris

Achilleas Taxildaris  Achilleas Taxildaris is analyst for Manager Research and focuses on active strategies.

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