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Investment Advice

Building a tailored portfolio

Constructing effective portfolios in today’s market can be challenging. Our clients have come to rely on our team’s counsel in building and maintaining a portfolio geared to reach their investment objectives.

Intimately familiar with every line on your statement.

A portfolio is more than just a collection of securities you accumulate over the years. Every single line must serve a purpose and be carefully selected as part of a whole. Before adding or removing every security from your portfolio, our team conducts extensive due diligence and research to identify the key factors which would add or remove from expected performance.

Bottom up approach

Some of our equities selection criteria:

  • Healthy balance sheet
  • Cash flow growth
  • Sustainable competitive advantage
  • High barriers to entry for competitors
  • Proven management track record

Top down

Studies have shown that asset class selection determines a large part of your overall return. Since getting your asset allocation right is so critical, our team stays abreast of the most current macro-economic indicators. This enables us to build our clients all weather portfolios that can face any conditions on the horizons.

Institutional Style Management

Just as no sports team is entirely comprised of all-star players, no firm can possibly have the best money managers in every investment class. Through our extensive due diligence process, including industry research and management meetings, we select the best breed of external money management firms. This empowers us to recommend optimal investment mandates for every asset class in our client portfolios.

Risk Management

A rising tide lifts all boats. “Only when the tide goes out do you discover who has been swimming naked”.
– Warren Buffett

We help our clients grow assets they cannot afford to lose, carefully investing their money as though it were our own.

Winning by Not Losing

Avoid permanent losses. These are destruction of capital caused by a permanent drop of market value of an investment. This scenario occurs most often when investing in unproven companies, penny stocks, overvalued securities or even from a stock tip from an unreliable source.

Capitalize on temporal losses. These are opportunities to be taken advantage of. Renown companies with strong balance sheets and healthy cash flows can sometimes trade at valuations below their fair value. Often times, these temporary lows are either driven by general investor fears or economic downturns. With a long term perspective, these events create opportunities to buy quality securities at bargain prices.

Diversification, not “Diworsification”

One of the core tenants for risk mitigation is to diversify a portfolio. However, with the desire to diversify comes the risk of including too much, leading to diworsification instead. For instance, adding too many companies in the same industry will result in a lower expected return compared to picking the best ones. In addition, doing so does very little to protect the investor from a downturn in the entire industry, as the share prices of all of those companies will likely decrease at such a time.

The key to efficient diversification involves the concept of correlation. This is the measures to which two assets move in the same direction at any given time. To maximize the benefits of diversification, it is crucial that a portfolio is composed of assets with little correlation to one another. In other words, the different components of the portfolio tend not to move in the same direction at the same time, which reduces the overall volatility.

We help our clients capitalize on the differences between permanent and temporal losses. To do so requires disciplined execution and maintaining a diversified allocation that will provide the liquidity to buy depressed assets when the opportunity presents itself.

Taxation

In an environment where taxation can erode more than 50% of portfolio returns, it is crucial to consider income tax implications carefully.

Optimizing a portfolio for minimum taxation reduces the regular erosion on investment return. Over an investment horizon, a difference of just 1% in net compounded return can make a significant impact.

Consider the results below of two portfolios of 500,000$ invested for 20 years with a rate of return of 5%.
 portfolio A: 25% tax rate for the investment returns
 portfolio B: 50% tax rate for the investment returns

Fees and Transparency

Our transparency means clients will always know what they pay for and why.

We understand the impact of fees on a portfolio and the importance of getting your money’s worth. With this in mind, our focus is always to ensure that value of advice always exceeds cost.



Stocks, bonds and mutual funds are offered through Manulife Securities Incorporated. Insurance products and services are offered through Manulife Securities Insurance Inc. Banking products and services are offered through referral.

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1405 Trans-Canada Suite 200
Dorval, Quebec, H9P 2V9

GET IN TOUCH

(514) 421-7090 ext. 344
1 (866) 713-8969