Pyrford International

Pyrford International is an investment specialist operating as part of BMO Global Asset Management. There are no ‘star managers’ at Pyrford – instead an experienced team work together to implement a clear, straightforward and common-sense approach to investment. Preserving capital is a paramount consideration – something they work to achieve through a clear focus on quality, value and diversification.

View available funds and strategies by region

Other countries

A quality and value-driven, absolute return approach

Our investment philosophy is based on a quality and value-driven, absolute return approach. At the stock level, we identify companies that are fairly valued or undervalued in relation to their potential long-term earnings growth, whilst at the country level, we seek to heavily overweight countries that provide good value relative to their long-term prospects and underweight or avoid countries that do not.

This approach produces long-term investment returns characterized by very low absolute volatility and excellent downside protection.

The first stage in the decision process is asset allocation and country allocation. We make five-year earnings projections for the fixed income and equity markets in our universe. This framework allows us to determine the relative value across markets and from this we derive our asset allocation and country allocation strategy.

Our process is a mixture of asset, country allocation and stock selection.

We measure relative value in equity markets in the following way: Current Dividend Yield + Forecast Long Term Earnings per Share Growth (expressed in real terms).

The process involves integrating many sources of information with emphasis on our in-house research expertise.

We do not invest in any country which does not satisfy our minimum requirements in relation to accounting standards, investor protection and political stability.

Following the country allocation decision, we use a disciplined, bottom-up process to determine individual stock value. We look for:

  • Well-priced companies that are leaders in their industry
  • Superior management and a sound capital structure
  • Medium-to-large capitalization companies within their respective markets

 

The next step in our process is to perform a rigorous financial analysis to help determine earnings per share and total return expectations for selected companies. This helps us understand the dynamics of:

  • Company growth
  • Earnings quality
  • The likelihood of trends being maintained

 

The analysis is comprehensive and includes a retrospective five-year study of the balance sheet, income statement, the statement of changes in the financial position, and a management interview.

We believe our face-to-face interviews with management are crucial. A stock will not be selected for investment prior to our meeting with management. We also revisit management at least once a year as long as the stock remains in the portfolio.

These company visits provide us with firsthand knowledge of the company, its management, and its operations. They also give us invaluable input for our macro analysis, and help point us toward developing economic trends, trends that have not yet been reported in officially released statistics.

In-house research is of prime importance to our process. All of our investment professionals participate in the research process. Investment analysts tend to concentrate on individual company analysis whereas the more senior professionals are involved in all aspects of the research function.

We also seek out independent commentators and analysts who challenge our thinking on both macro and micro issues. We have developed close professional relationships with many organizations and individuals. They form an integral part of our research process.

To meet the challenges of today’s investing environment, you require access to investment solutions managed with regional expertise and a global perspective. We offer a range of products in both segregated and pooled fund management to meet that need.

  • Global Absolute Return Strategy
  • Global Equity
  • International Equity
  • European Equity
  • Asian Equity ex Japan Equity
  • Asian Equity including Japan Equity
  • Shariah Compliant Strategies

 

Select your country and investor type above to find investment solutions available in your country from Pyrford.

Responsible Investing

Pyrford has been managing assets using the same, proven value-based fundamental process for over 30 years. We have always assessed companies over the long-term, seeking out those capable of generating earnings sustainably through the development of products and services which are valuable to their customers, hard to replicate and unlikely to be replaced. Central to the sustainability of a business is its relationships with suppliers, customers, employees and shareholders, along with its impact on the environment. Companies can survive for the short term-term, taking irresponsible approaches to these areas but to prosper companies must demonstrate leadership in each of these areas.

Pyrford International (Pyrford) is delighted to release the latest edition of the annual Pyrford Environmental, Social and Governance (ESG) Report. This is the fourth year that we have produced an annual report covering our ESG activity over the previous calendar year. I would like to start by thanking those who have provided feedback on previous editions and I look forward to hearing from you on our latest report.

Pyrford has been managing assets for over 30 years using the same, proven value-based fundamental process. We have always assessed companies over the long-term, seeking out those capable of generating earnings sustainably through the development of products and services which are valuable to their customers, hard to replicate and unlikely to be replaced. Central to the sustainability of a business is its relationships with suppliers, customers, employees and shareholders, along with its impact on the environment. Companies can survive for the short term-term, taking irresponsible approaches to these areas but to prosper companies must demonstrate leadership in each of these areas. This report will demonstrate how we encourage the companies we invest in to move to these positions of leadership.

To demonstrate our full commitment to the Financial Reporting Council’s (FRC) UK Stewardship Code, we believe it is appropriate to report on this area in more detail, particularly on engagement and proxy voting.

We trust our readers will find the following paper useful and we would welcome comments and feedback for future editions. Furthermore, we would be delighted to meet with clients and indeed peers to engage on any of the issues raised.

Pyrford International is a signatory to the United Nations Principles for Responsible Investment (PRI). This formalises the company’s long-standing commitment to considering Environmental, Social, and Corporate Governance issues as part of its wider research process, in the expectation that companies with sustainable long-term approaches to these issues will ultimately produce better returns and, importantly, less risk for our clients.

As a signatory, and where it is consistent with our fiduciary responsibilities, we have committed to the following:

  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.

In the UK, the Financial Reporting Council (FRC) have published a Stewardship Code (the Code), which is a set of principles and guidance for effective stewardship by investors. Under the UK Financial Conduct Authority’s conduct of business rules, we are required to publicly disclose our commitment to the Code, or if we don’t commit to Code disclose an alternative strategy. Commitment to the Code is on a “comply or explain basis.”

Pyrford is fully committed to the Stewardship Code and complies with all its principles. The principles are designed to protect and enhance long-term shareholder value, which Pyrford fully supports. In August 2017, Pyrford were awarded Tier 1 status by the FRC.

Pyrford’s policy with respect to the voting of proxies is clear and simple. Firstly, if the Trustees of the funds under our management direct us to vote in a particular way, we will of course implement their instructions. In the absence of such instructions from the Trustees, it is Pyrford’s policy to consider every resolution individually and to cast a proxy on each issue; the sole criterion for reaching these voting decisions being the best interests of the client. This is part of Pyrford’s broader fiduciary responsibility to its clients.

Pyrford International is pleased to publically disclose our firm’s Conflicts of Interest policy.

This policy applies to Pyrford International Ltd., all employees and contractors. It sets out our approach to identify and manage conflicts of interest which may arise during the course of our business.

In addition to this Policy, we are also bound by the BMO Code of Conduct. The Code outlines five principles which set a performance standard the Bank adheres to. Principle 5 deals directly with ensuring personal and business affairs do not conflict – or appear to conflict with – BMO’s interests or other interests of BMO’s current or prospective customers, counterparties and suppliers.

Meet the Pyrford International team

Kristi Mitchem
Chief Executive Officer, BMO Global Asset Management
Joan Mohammed
Chief Operating Officer, BMO Global Asset Management
Ross Kappele
Head of Distribution & Client Management, BMO Global Asset Management Canada
Steve Ilott
Head of Investment Solutions, CIO North America
David Logan
Head of Distribution, BMO Global Asset Management

Latest insights from Pyrford International

No posts matching your criteria
December 2019

Worldwide woes and debt

In a number of countries, long-term government bond yields fell into negative territory. Add in quantitative easing and you have a recipe for tiny yields.

LOAD MORE

Important regulatory documents and tax disclosures