A Peak Inside Portola Creek’s Investment Strategy

Going behind the scenes with our research partner Magni Global Asset Management.

Magni is based in Minneapolis, a city that ranks third, on a per capita basis,
 in the number of Fortune 500 companies based there. More importantly, it has long been a hotbed for businesses that believe in treating the environment, their employees, and the community well.

Portola Creek’s foreign equity allocations are largely determined by Magni’s country Governance ratings.

Magni is the leader in country-level research
 on corporate governance

Magni is the leader in country-level research on corporate governance — its core premise is Countries Matter(TM) when investing internationally. Magni developed its Sustainable Wealth Creation principles for good governance, which are based on widely-accepted economic concepts, by examining the accounting, legal, regulatory, adjudicative and economic structures of investible countries around the world. The firm’s extensive research database covers 12 Economic Standards, and contains data on 280 Qualitative Sovereign Factors collected over the past 16 years.

How can a country’s Governance be measured?

Two words that describe Magni’s point of view are transparency and honesty. Their research has shown that the more these factors apply with respect to a country’s citizens, businesses and investors, the more wealth that is created in that locale. Lending further support, studies have shown that nation’s that have an open, honest, and transparent economy outperform those that do not.

However, the fact that laws and regulations are on the books to ensure compliance does not mean they are enforced. Governance researchers need to look past official pronouncements and/or stated intentions to assess how businesses and government officials actually behave. In this respect, Magni stands out from other similar organizations in its ability to research and gauge this behavior.

How does country’s Governance impact company performance and investing opportunities?

In our view, assessments of a country’s ability to facilitate a high-quality corporate governance environment represent critical investment information. In places where such standards hold true, companies are able to create value for their shareholders without interference from either corrupt government officials or government-sponsored organizations. At Magni, they offer deep insights about governance in each of the world’s investible countries and rank them accordingly. Not surprisingly, their efforts have helped them to build a successful track record managing client portfolios.


Want to learn more about Portola Creek’s investment strategy or how to become a client?

Portola Creek Capital HQ: 44 Tehama Street
San Francisco, California 94105. Phone: 415–990–9499

We deliver thoughtful solutions to each client’s unique financial objectives. Tell us what you are hoping to accomplish and Portola Creek will help you build and execute a comprehensive plan.

Chat with us today: 415–990–9499

or email the office at: info@portolacreek.com

Additional information about Portola Creek Capital is also available on the SEC’s website at www.adviserinfo.sec.gov. The searchable IARD/CRD number for Portola Creek Capital is 288119. Questions? Contact Melanie Graham, Director of Marketing @ Portola Creek: melanie@portolacreek.com