Our first step is to hold an introductory meeting to assess your specific needs and outline our approach.
During this initial meeting, we conduct an in-depth review of your situation to learn about your family, profession and financial situation. This allows us to accurately assess your investment objectives and risk tolerance, all the while considering your financial requirements, goals, constraints and investing history.
2) Establishment of your Investment Policy Statement
Following our first discussion, we draft your Investment Policy Statement. Created specifically for you, this document incorporates your present situation, return expectations, income requirements, risk tolerance, time horizon and unique preferences.
Based on the above, we recommend an ideal asset-allocation model for your portfolio. How your portfolio is divided among cash, fixed income, equities and commodities, and geographical location, is the most important factor in balancing risk and investment returns.
When complete, your Investment Policy Statement is signed by you and Gilles. This represents our commitment that the ongoing investment process will be consistent with the guidelines we establish together.
3) Building your portfolio
Next, we select quality investment opportunities that fit your portfolio's ideal asset allocation model and our economic and market outlook. To choose equities that are excellent on a fundamental basis, we assess the quality of a company's management, products, geographical diversification of revenues, currency protection and financial data for the last five years. We also conduct technical analysis to ensure the proper timing of all transactions.
Senior economists, portfolio strategists and research analysts from various parts of RBC augment our insight in these key areas. We also employ external research from J.P. Morgan, Standard & Poor's and Value Line, as well as independent research to ensure we have a complete understanding of all investment options and of the current economic landscape.
For clients who require a reliable fixed-income stream, we consider income-generating shares of Canadian, U.S. and international blue-chip companies, as well as AAA rated bonds. We also consider federal, provincial, municipal or corporate bonds, as well as preferred shares from established companies while always respecting the highest norms of quality and seeking tax-efficiency.
4) Ongoing portfolio management
We review your portfolios with you on a quarterly or semi-annual basis to ensure your investments are on track and appropriate given changing markets and economic conditions. We take this opportunity to discuss your personal, professional, business and financial situations to see if any changes should be made to your objectives and risk tolerance. We also review changes in your account over the past year as well as current and recommended positions, and our market outlook for the year ahead.
5) Keeping you informed of your progress
You receive a monthly account statement that details the activity in your portfolio and provides the current market value of all your positions. In addition, you receive a quarterly return calculation and have access to your accounts and timely market information through our online services and website.
