At the heart of investment management are the managers who invest and divest investments within the funds, pools, or segregated portfolios we use for our client accounts. Each manager, or investment team, invests according to their mandate, asset class, and process applicable to their management style. We apply an ongoing due diligence filtering process to define the management firms we select for client portfolios.
Once the management firms are defined, we determine the allocation of funds among the asset classes based on the clients individual risk tolerance and objectives. These asset classes may include stocks, preferred shares, fixed income securities, and cash. Asset classes exhibit different market dynamics, and different interaction effects; thus, the allocation of monies among asset classes will have a significant effect on the performance of a client’s portfolio. Consideration is also given to overall diversification by geographic location, currency, management style, and equity type with a bias toward dividend paying stocks.