Statement of Objectives and Investment Policy
The Statement of Objectives and Investment Policy is an attempt to express your personal investment objectives in a document that will guide the content of your portfolio. The Statement of Objectives and Investment Policy provides the framework for managing your comprehensive investment portfolio including making decisions, reporting on progress and reviewing your objectives in a timely and regular manner.
Objectives
Your custom portfolio is to be constructed with a view to optimize current income, provide sufficient income, growth potential and preserve capital. Within this overall objective the portfolio should seek to earn total returns approximately matching the rate of inflation over the long term. Invest in top rated fixed income, equities, ETFs, mutual funds and non traditional investments. We will strive to achieve 4-5% income plus growth.Income of interest,dividends and return of capital. Over the short-term the portfolio should be sufficiently flexible to accommodate any specific income withdrawals that may be required.
Building you income and growth portfolio
Your age, health, marital status, dependents and sources of income are all considerations when constructing your portfolio. Investments assembled as a portfolio should result in a source of income and growth, which is both dependable and suited to your needs.
Investor Profile
The portfolio is best suited for an investor seeking income , growth and preservation of capital. This objective may at times be compromised if withdrawals from the account exceed the income generated by the fixed-income investments.
Tolerance for Fluctuations
You have indicated you can tolerate portfolio declines for 1-2 quarters in order to preserve capital.
Liquidity
5% of the portfolio should be held in cash or cash equivalents for specific expenditures that will not be made from normal income withdrawals.
Investment Principlas and Strategies
The funds are expected to be invested for 3- 5-10 years.
Some of our principals , philosophy and strategy we follow are out lined on page 16.
Taxation
Non-registered accounts tax minimization will be a key strategy. Tax assited investments where applicable.
Asset Allocation
The asset allocation of income and growth investments will be determined through verbal conversations and questionairre. These discussions will help us determine investment risk and objective attitudes. This list can be expanded upon approval. Please see page 11.
Investment Products
The portfolio will be invested in a combination of cash, equities and fixed income instruments. Equities will include a mix of CDN and International equities and/or ETFs and mutual Funds. Fixed income includes money market, bonds, preferred shares, etfs and mutual funds .
NON traditional investments will be discussed. See attached list.The asset allocation depends on your objectives and risk tolerance. Please see page 15.
Quality Guidelines
All individual debt securities will be rated “BBB” (R-1 for money market securities).
Preferred securities will be rated P3 or better.
No equity investments will be made in any company with a market capitalization of less than $100 million unless agreed upon through verbal discussions.
Diversification Guidelines
The cumulative investment of equity and preferred shares in any one company or any mutual fund investment will not exceed 10% of the portfolio.
The cumulative investment of preferred and common shares in any one industry sector or group will not exceed the greater of 10% or 1.5 times the percentage weighting assigned to that group by the TSE 300 Composite Index.
The total of all investments falling outside the above quality and diversification constraints will not exceed 5%. From time to time the portfolio may hold trading positions in anticipation of news or events or other short-to-medium term opportunities. No more than 25% of the portfolio will be exposed to trading positions.
Decision-Making
Few programs are ever final. Conditions change, new goals emerge and old needs become less important. Certain investments vehicles become inappropriate and must be replaced. Portfolio changes will be made within the context of your objectives, risk tolerance and the investment environment.
Time and Planning Horizon
The time horizon for making investment decision and performance assessments will be a 3-5 year period. Results will be measured quarterly and reported semi-annually through our rate or return analysis.
