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PROTECT CLIENTS FROM RISKY SYNDICATED MORTGAGES

ADVISOR.CA – Simon Doyle and Katie Keir
Larry Jacobson, a fee-only advisor with Macdonald, Shymko & Company in Vancouver, …

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Investment Philosophy

Vancouver Portfolio Management

Trust relationships are important in good and bad markets. While we do not pretend to know the direction of the market, interest rates or world economies, we believe that portfolio structure should reflect each investor’s unique temperament, ability to handle and afford risk, and financial and life goals.     

The foundation of our investment philosophy is an Asset Class approach. Rather than relying on speculation or anecdotal evidence, our philosophy rests on a solid foundation of core principles from the science of investing.  Since our inception in 1972, this has proven to be a successful approach for our clients.

Asset allocation is the starting point of investment planning, as empirical data indicates that it is a significant factor in the long-term, risk adjusted return of a portfolio.  The asset allocation decision, which is captured in your personalized Investment Policy Statement, sets the parameters from which all investment decisions are made, and is determined with respect to your specific goals and ability to handle risk. Your asset allocation should be revisited as your goals or risk tolerance change, but this does not mean speculating on the direction or timing of market movements (market timing). Rather, it is a systematic and structured approach to creating a relevant and rewarding long-term investment mix.

Diversification is another key to a successful investment experience. Diversification does not simply mean the number of stocks in a portfolio, but the exposure to various asset classes such as fixed income, mortgages, equities and real estate.  Appropriate diversification generally reduces overall portfolio volatility and provides an appropriate risk adjusted return.

From an equities perspective, empirical evidence reflects that equities markets are efficient. Thus, with information disseminated quickly to the market, active management has great difficulty adding value relative to an Asset Class strategy.  Much of this difficulty can be attributed to costs associated with active portfolio management.  While the statistics show that some managers outperform, it is difficult to identify this in advance.

Our Fee Only Financial Advisors have been recommending Asset Class investments such as Exchange-Traded Funds (ETFs) since their introduction in Canada in 1990. This ever-growing universe of strategies can be intimidating, and can make it difficult for individual investors to create an appropriate portfolio mix.  Our MSC Fee Only Financial Advisor will bring clarity and direction in helping you establish the appropriate Asset Class portfolio.

Please review our Downloads area for further documents that outline the benefits to utilizing strategies that focus on our Asset Class investment approach.

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