The framework for success
1. Create your Investment Policy
The first step is to draft your Investment Policy Statement – the document that guides us in making day-to-day investment decisions for your portfolio. Your Investment Policy Statement, created individually for you, takes into account your return expectations, income requirements, risk tolerance, time horizon, unique preferences and other factors.
Taking all these factors into account, we recommend an ideal asset-allocation model for your portfolio. How your portfolio is allocated among the three main asset classes – cash, fixed income and equities – is the single most important factor in determining the balance between managing risk and providing higher returns.
2. Construct your Portfolio
Based on your ideal asset-allocation model, we will select an appropriate combination of investments for your portfolio. In selecting your investments, we combine an understanding of the “big picture” – overall global economic and market trends – with fundamental research of individual investment opportunities. Senior economists, portfolio strategists and research analysts from various parts of RBC augment our insights in these key areas.
3. Manage Your Portfolio
Market and economic conditions change. Your personal situation and goals will also change. As a result, it is essential to make appropriate adjustments to your portfolio. We will make day-to-day investment decisions on your behalf to respond to and anticipate the changing market and economic landscape. If the outlook for a certain sector of the economy brightens, we may increase your holdings in that sector. Similarly, if the outlook for a certain region of the world improves, your portfolio will be adjusted accordingly within the guidelines established in your Investment Policy Statement.
4. Review and Monitor Your Portfolio
Your portfolio is constantly monitored by a third party, the Portfolio Implementation and Risk Group. This group ensures your portfolio is managed according to the terms of your Investment Policy Statement, as well as core Private Investment Management guidelines designed to ensure you hold quality investments and a suitable asset mix for your situation.
5. Adjust Your Investment Strategy
We will also meet with you on a regular basis to review your portfolio and get an update on your personal and financial situation. Your goals are likely to change over time, and your Investment Policy Statement and portfolio need to reflect these changes.
6. Keep you informed of your progress
You will 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 can receive a quarterly rate-of-return calculation. You also have access to your accounts and timely market information through our secure private client website, DS Online.
Take the next step to private investment management
If you desire greater freedom to focus on what’s really important to you, and the confidence of knowing that your portfolio is in the care of trusted professionals, we invite you to consider Private Investment Management. Please contact us for more information.
