{"id":3174,"date":"2026-04-30T11:47:28","date_gmt":"2026-04-30T11:47:28","guid":{"rendered":"http:\/\/altafina-stripped.dev2.wshost.ca\/altafinas-8-guiding-investment-principles\/"},"modified":"2026-08-21T15:50:48","modified_gmt":"2026-08-21T15:50:48","slug":"altafinas-8-guiding-investment-principles","status":"publish","type":"page","link":"https:\/\/altafina.com\/en\/altafinas-8-guiding-investment-principles\/","title":{"rendered":"AltaFina’s 8 guiding investment principles"},"content":{"rendered":"\r\n\r\n
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AltaFina's 8 guiding investment principles<\/h1>\r\n <\/div>\r\n\r\n \r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n <\/div>\r\n<\/section>\r\n\r\n
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A Philosophy Grounded in Academic Research<\/h2>\r\n <\/div>\r\n \r\n
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At AltaFina, portfolio management is not driven by intuition or predictions. It is grounded in proven principles supported by decades of academic research and real-world market experience.<\/p>\n

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These principles form the foundation of our investment philosophy and are put into practice through our Index-based Management Plus<\/strong> approach. They guide every decision we make in managing our clients\u2019 portfolios, with one clear objective: to maximize the probability of long-term success while carefully managing risk, costs, and taxes<\/strong>.<\/p>\n <\/div>\r\n <\/div>\r\n\r\n

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Our 8 fundamental principles<\/h2 class=\"style-h3\"> \r\n <\/div>\r\n\r\n
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1. Respect the facts. Trying to “beat” the market is highly unlikely and costly.<\/h3> <\/div>\r\n\r\n
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Many investors attempt to outperform the market by:<\/p>\n

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  • selecting individual securities<\/li>\n
  • choosing actively managed mutual funds<\/li>\n
  • trying to anticipate market movements<\/li>\n<\/ul>\n

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    The evidence, however, shows that these approaches have very little chance of succeeding over the long term.<\/p>\n

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    For example, 97% of global equity mutual fund managers underperform their benchmark over a 10-year period<\/strong>. In other words, the odds of selecting a manager who can consistently outperform the market are extremely low. Even when a manager does succeed for a period of time, it is rarely the same managers who are able to repeat that performance.<\/p>\n

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    Fortunately, long-term market returns have historically been strong. Investors who accept market returns have, over time, outperformed the vast majority of those who attempt to do better.<\/p>\n

    Sources :<\/strong><\/p>\n

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    • SPIVA Canada Scorecard 2022 \u2013 S&P Dow Jones Indices<\/em><\/li>\n
    • The Arithmetic of Active Management \u2013 William Sharpe, prix Nobel<\/em><\/li>\n
    • The Case for Low-Cost Index-Fund Investing for Canadians \u2013 Vanguard Canada<\/em><\/li>\n
    • Active\/Passive Barometer Report \u2013 Morningstar<\/em><\/li>\n
    • \u00ab Pourquoi battre le march\u00e9 est plus difficile que grimper l\u2019Everest \u00bb \u2013 La Presse<\/em><\/li>\n<\/ul>\n <\/div>\r\n <\/div>\r\n
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      2. Allocate wisely between equities (for growth) and fixed-income securities (to reduce volatility).<\/h3> <\/div>\r\n\r\n
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      The decision that typically has the greatest impact on an investor\u2019s long-term results is not the selection of individual investments. It is the allocation between growth and conservative assets<\/strong>.<\/p>\n

      Growth assets, primarily equities, offer greater return potential but also come with higher volatility. Conservative assets, primarily bonds, help provide stability within the portfolio. Striking the right balance depends on several factors:<\/p>\n