Our Investment Process
We design a customized portfolio comprised of best-in-class mutual funds or segregated funds choosing from hundreds of funds across tens of fund companies. We work with our clients aligning their investment assets with their goals, as well as their existing and expected liabilities. This process takes into account the level of risk that the clients are comfortable taking and the level of risk for their profile, time horizon and income. The outcome of this process is a target asset allocation across the clients’ investment accounts.
The next step is to choose the specific investments for each asset class, from a selection of mutual funds or segregated funds. To do so, we choose the best-in-class funds based on the following criteria:
- Percentile ranking by Morningstar category – how the funds have done compared to other funds
- Manager tenure – how long the fund managers have been managing these types of investments
- Expense ratio – how much the fund company charges
Our investment philosophy is comprised of the following three pillars:
- Limited tactical asset allocation where we are not trying to time the market, since most people have not been able to do so consistently over time. We stick to a long-term approach by focusing on the target asset allocation.
- Passive investing (index funds or ETFs) where it makes sense, such as large-cap US stocks, and active investing (non-index funds) for areas where managers have had more success beating the benchmark.
- Portfolio review and rebalancing if required regularly.
Ready to learn more? Contact us for a free 30-minute conversation.