Creating Solutions

A balanced and disciplined approach

Michael’s investment experience is supported by RBC Dominion Securities – the largest investment firm in Canada.

Michael follows a highly disciplined and conservative approach to investing and his prior experience in global finance has provided him with an acute understanding of market risk. Recognizing that asset allocation is the primary determinant of investment returns, Michael invests primarily in stable and proven equities and higher-interest-rate bonds and government securities. Utilization of risk-reducing strategies, such as equity stop losses, also forms an important element of his investment strategy.

RBC Investment strategy committee

The RBC Investment Strategy Committee is comprised of RBC senior economists, portfolio strategists and research analysts. This group provides Michael’s team proprietary and highly discerning information on the marketplace. The Strategy Committee makes quarterly recommendations regarding the optimal structure of client portfolios, including:

  • The optimal mix of stocks, bonds and cash
  • Suggested term for fixed-income investments
  • Top ranked stocks collectively expected to outperform the TSX

Investment characteristics

The majority of equity investments are made in large blue-chip entities. Recommendations provided by the RBC Investment Strategy Committee Focus Lists of the top-ranked Canadian and U.S. form the core of most clients’ investment portfolios. Michael also takes into consideration and regularly monitors other industry considerations and trends. Since its inception in 1984, the Canadian Focus List has earned an annualized compound return of 15.8% compared to just 9.0% for the benchmark S&P/TSX Composite Index (as of Aug 31, 2009).

RBC Dominion Securities fixed-income Portfolio Advisors provide insight and ideas pertaining to fixed-income portfolio management. The primary strategy we employ is the development of a fixed-income bond ladder, which reduces default and interest rate risk by avoiding concentrations of similar bond types and durations.

Exchange traded funds (ETFs) are the preferred vehicle to invest in country-specific international indexes. In some instances, international mutual funds may also be considered.