Our Asset Allocation and Security Selection Process

Managing your wealth with discipline and care

At Kelly-Gorham Private Wealth of RBC Dominion Securities, we understand that your investment portfolio must be tailored to you. In consultation with you, your portfolio will be constructed with such factors as your growth requirements, income needs and risk tolerance in mind. We have developed a refined, disciplined, pension-style approach to determining and implementing the asset allocation that best suits your goals and risk tolerance.

• Diversification – We ensure thorough diversification across geographic regions, asset classes and business sectors. Portfolio exposure is constantly monitored and rebalanced to protect you from the risks associated with the markets, geography, commodities, currency and interest rates.

• Tax efficiency – It’s not just what you make, its how much you keep. Our tax-efficient wealth management process – from asset allocation and security selection to trading and income generation – focuses on maximizing your after-tax returns to leave more money in your pocket.

• Risk management – We have the ability to use cash, currencies, alternative investments and option strategies as needed to “play defence” and protect portfolio downside during market turbulence. Reducing downside volatility is one of our key priorities.

• Flexibility and objectivity – We are not restricted to any particular investment product, style or asset class, and can focus on where we see the best opportunities. We screen using multiple internal and external research sources and styles to crosscheck investment ideas.

Our security selection process

We conduct ongoing research and assessments to manage your risk. Our “top-down” approach provides a high-level, global economic outlook evaluating geopolitical events, business cycles, inflation, interest rates and labour markets. This plays a large role in how we shape our geographic mix, as well as what types of fixed income investments we hold.

Our “bottom-up” research is what truly makes us unique. Using advanced analytics software, we combine capital markets research from a variety of sources to screen for companies with specific attributes, including strong balance sheets, earnings per share ratios, earnings growth, dividend growth and trading liquidity, to name just a few. For example, when assessing Canadian and U.S. equities, we have over 53 different selection criteria.

Our strict and robust screening methodology focuses us on companies with only the best attributes. We have a defined process for how stocks and fixed income investments are added and removed from our portfolios. In addition to our advanced analytics software, we use leading research from the RBC Portfolio Advisory Group, RBC Capital Markets and external/independent sources like FactSet, JP Morgan, Morningstar and Veritas.

Equitable trading process

After putting our disciplined process into action, we implement our equitable trading process, which ensures every client, regardless of their portfolio value, receives the same trading prices. If we purchase an investment throughout the day, at various prices, our clients get their equitable/pro-rated share of the average investment purchase price for that day.


A top-down and bottom-up approach to portfolio decisions

We would be pleased to meet with you for an initial consultation on your investment and wealth management needs. Please contact us to arrange an appointment.