Discovery – We believe in the importance of a thorough understanding of your financial goals, view towards investment risk, level of financial knowledge, and your return expectations. Through this discovery process, we find out what is most important to you. It might be about growing your financial assets, or funding your retirement, or ensuring your beneficiaries are taken care of. We will help you confirm or in certain cases adjust these financial goals when appropriate. We aim to help you gain a greater understanding of how investment risk may impact your ability to meet your objectives, and ensure that your return expectations are consistent with your tolerance for risk.
Financial plan – We will build a financial and wealth plan for you detailing how you can achieve your financial goals. The financial plan is important, as it takes into consideration your personal balance sheet, cash flow statement, and provides projections using realistic expectations to analyze your current and future financial health. This plan is a dynamic document, and we will review, update, and adjust the plan when necessary to reflect material changes in the future. Most importantly, the plan also identifies actions that should be taken to help you accomplish your financial goals. We may provide alternate scenarios, showing how a higher or lower rate of return on your investments, or a higher or lower level of spending affects your ability to meet your financial goals. We will also let you know at this point if your financial goals are achievable, and if not, what actions must be taken to get back on course.
Investment policy statement – The Investment Policy Statement (IPS) is the document that outlines the details of your investment constraints. It reflects an investment profile that is best suited for you, based on your goals, needs, comfort level, and knowledge. The IPS is precise, with a focus on asset allocation, identifying explicit limits on how much or little can be invested in each of the asset classes: cash, bonds, or stocks. This is important as it dictates how we invest your money, the amount of investment risk assumed, and the return expectation that is realistic based on those limits. The IPS also provides full transparency on investment management fees, reporting and review standards.
Plan implementation – Once the Investment Policy Statement has been completed, we will move forward in implementing the plan. Depending on the asset allocation rules outlined in the IPS, we would then decide on the portfolios that are most suitable for your plan. Each of our portfolio mandates have a specific asset allocation policy. We will establish a portfolio for you that is consistent with your IPS by calculating the ratio of your financial assets to be invested in these portfolios, leading to an overall portfolio allocation that matches the limits indicated on the IPS, and a portfolio structure that best matches your return objective and risk tolerance.
Reporting and review – We report to you monthly and provide detailed semi-annual performance reporting. With the onset of new reporting requirements in 2017, your performance reports will be delivered on a quarterly basis. We encourage meeting on an annual basis, to review and to make any necessary changes so that you remain on track. More meetings or discussions are encouraged as more communications mean greater engagement and understanding. It is important for you to disclose any new information, goals, or other relevant items that may require an update to your Financial Plan.
Ongoing update and adjustment – The cycle of discussion, investment management, reporting and review is continuous, transparent, and flexible. It provides you with your own customized investment solution, which is adjusted as your needs change.
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