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Managed Investment Services |
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The goal of our Investment service is simply to build and manage a portfolio that
achieves our clients' objectives - with their security a priority. Building a well
diversified portfolio requires knowledge, process and a structure. Managing that
portfolio takes experience and discipline.
Well diversified portfolios should include high quality investments with varying
risk profiles that do not correlate to each other. These can include:
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- Diverse fixed income investments
- Common domestic and foreign equities (stocks and stock based mutual funds, dividend
paying equities),
- Alternative investment funds (hedge funds, principle protected notes)
- Annuities
- Pensions
- Universal life insurance policies
- Investment real estate
- Business investments
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The first step is to understand our clients' goals, values, income or growth needs,
experience and risk tolerance. This information helps us determine which products
to recommend and how to allocate them. How assets are allocated to the various types
of investments, products, asset classes and investment styles is more important
than actual product selection. It is the allocation of the portfolio which has the
biggest impact in terms of reward and risk.
Note: We define risk as the level of volatility of an investment:
Once the allocation is complete and the portfolio is in place, it requires regular
review, management.
Roles and responsibilities
We are responsible for:
- Advising on portfolio structure
- Recommending appropriate products
- Monitoring performance and reporting
- Reviewing and recommending any necessary changes to the portfolio
- Re-assessing plans based on personal or economic conditions
- Arranging regular review meetings.
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It is our client’s responsibility to provide us with all relevant information
concerning their financial condition prior to review, present needs, future objectives,
overall investment personality and to notify us of any changes to this information. |
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Our Investment Philosophy: |
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We must understand you.
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- We must understand and consider all aspects of your situation before recommending
a strategy or products. Specifically your values, goals, timeframe, needs and comfort
level with volatility (risk).
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We don’t time markets
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- Wealth is more often and certainly accumulated through long term prudent investment
than short term speculation.
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We follow a disciplined asset allocation strategy based on your goals and risk
tolerance.
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- Although it may be obvious, appropriate asset allocation and security selection
is the single most important task in investing – for both return and volatility.
The trade off for a larger potential return will always be greater volatility in
the investment portfolio. Following a disciplined strategic asset allocation approach
based on your investment objectives and risk profile has the best opportunity of
providing the maximum return with minimum volatility.
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We manage your real return.
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- The real return on investments is what you keep and is the only return that is off
importance. Taxation, inflation and cost of investing all impact your real return
and must be managed and minimized appropriately.
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Capital preservation is a priority over growth.
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- This is serious money and we cannot afford to lose it
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We diversify by asset type, class, investment style, capitalization and geography.
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- We tend not to diversify by sector
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We focus on investor performance along with investment performance.
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- If you accept us as your financial planners, we attempt to ensure you diversify
future income as much as possible to be derived from a minimum of three sources:
pensions, a business, real estate, investments.
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We require our client’s signature and approval on all transactions as
this is not a discretionary trading account. |
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Investment Monitoring, Reporting and Communications |
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We monitor the investment companies and the performance of their funds on
a regular basis. If any negative trends occur requiring a change, a call, or
note will occur informing you of a recommended course of action, and will require
your approval and signature.
You will have access to market values updated daily on-line. However, as this strategy
is long term in nature, daily monitoring is not recommended and can impact the portfolio
negatively if emotions are allowed to dictate decisions.
The investment companies will send confirmations describing any changes
made to the portfolio. They also send statements detailing market values
and transactions in specific investments at pre-set times.
At your annual review a detailed summary and analysis of performance takes place.
You will receive: |
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- A customized portfolio summary tracking your net invested, market value, your cumulative
gain/loss and your annualized Rate of Return
as a percentage.
- Your asset allocation with recommended re-balancing
- Performance of your investments against indexes
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We will call a minimum of twice a year, or if any issue needs our immediate attention,
please contact us.
Our office also sends out monthly email newsletters discussing current trends, the
economy and reality planning strategies.
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Performance Evaluation |
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Generally the majority of your investments will be measured against the following
indexes: |
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Fixed Income
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- SC Universe Total Return Bond
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Canadian Equities |
- S&P TSX |
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US Equities |
- S&P 500 |
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Global Equities |
- MSCI - Morgan Stanley Commercial Index |
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The money managers we choose may not outperform the indexes on a month
to month or quarter to quarter basis. There are numerous cases of managers under
performing in the short term and out performing in the long term. It requires faith
in the long term out performance track record of the managers
to remain in the investments over shorter periods of under performance.
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