Letter from our President
Dear Prospective Client,
Your core savings are the most important layer of your wealth. It provides the foundation upon which your financial prosperity is based. It is the capital that you are unlikely to consume in the short term, except in adverse or unique circumstances. That is why we refer to these savings as “bedrock capital”. It is Cowan Asset Management’s top priority to protect this bedrock capital so that our clients maintain the solid foundation of their wealth.
A long-term time horizon helps to protect your bedrock capital while it enjoys a healthy rate of return. Cowan Asset Management takes a three-to-five year view of its investments, resulting in portfolios with a low turnover. A strong emphasis is placed upon finding investments that are trading at a discount to estimated intrinsic value, thus providing a margin of safety. Insisting on this margin of safety is a key part of our investment process.
There are many ways your capital can be invested to produce healthy returns. We do not limit our search for attractive investments to any one asset class. Our team looks across the entire capital structure – equities, preferred shares, and bonds – to build a diversified portfolio that attempts to generate returns through a combination of capital gains and a stream of income.
Your level of wealth is a personal matter that should be managed according to your objectives. As the name of our Cowan Absolute Return Fund implies, we are concerned only with creating wealth on an absolute basis, not with outperforming an investment index on a relative basis. We strive to increase a client’s purchasing power by producing after-tax returns that exceed inflation. We also feel strongly about charging fees that are fair and do not impede returns materially. Our clients are our partners, so there is no need to impose redemption penalties or other expensive restrictions.
The people you trust with your wealth must be reliable stewards of your capital. Cowan Asset Management is wholly-owned by Princeton Holdings Limited, whose largest subsidiary has been a leading Canadian insurance provider for over 140 years. Princeton Holdings, along with Cowan Asset Management employees, invest side-by-side with our clients so that our interests are aligned. In total, Princeton Holdings, pension funds, individual clients, and our employees have entrusted Cowan Asset Management with over $1 billion in investable assets.
Managing your wealth is a great responsibility. Our approach to bedrock capital, our long-term view, and our strong firm ownership means we never take our responsibility to client wealth lightly. Protecting this wealth is of the utmost importance to us, just as protecting your wealth is of the utmost importance to you.
Michael Kosmalski, CFA
President, Cowan Asset Management