Over the years I’ve found that some clients want a high level of detail when it comes to their investments, while others just want to know if their portfolio is performing to their expectations. There’s nothing wrong with either approach, and it’s my job to know the ins and outs of the client’s holdings. But at the same time, I always encourage clients who don’t have much interest in the investment world to listen to the story, as it’s often more interesting than they expect.
Our team has spent countless hours doing market research, meeting with fund managers, and combining our best ideas to build diversified investment portfolios. Income, equity, and hedge fund managers are all integral parts of the equation. We build strong relationships with our fund managers through regular update meetings and have been investing with most of them for many years. Before we choose to work with a new fund manager, we complete thorough due diligence: performance, returns, fees, and fund structure are vital in our reviews—and so are their stories.
For example, learning that a mortgage manager is lending to builders constructing housing for thousands of employees at a new distribution center for a major corporation can help you understand how this particular manager takes a conservative approach to their investing, thereby protecting your return. Or perhaps you’re nervous about investing in hedge funds, so knowing that you’re investing in Canada’s oldest and largest hedge fund company with a solid record of success brings you comfort.
Our goal is to make sure we’re optimizing our clients’ returns while minimizing risk. This can mean also adding individual stocks or bonds to balance out your portfolio. As with the fund managers, we ensure that we have a clear picture of the story behind those investments.
And of course, there are the stories that involve you. We’ve all heard tales such as “I bought my first Tesla using profits from my Tesla stocks” and although that might be an extreme example, there’s nothing wrong with investing in companies that you like or find interesting, as long as you do your research first (or let us do it for you!). Or maybe you think you don’t want to invest in any oil companies, which is fair enough. But what if one of those oil companies has great ideas and plans in place for renewable energy? That’s where knowing the full story is important.
Letting your advisor discover your full story is key to ensuring the portfolio we’ve built works for you. Add in a solid financial plan, insurance solutions, and efficient tax strategies, and you’ll be well on your way to meeting your financial goals, while also understanding how your portfolio was crafted especially for you.
- Monica Mazun
Associate Investment Advisor