How We Manage Risk
As an accredited Portfolio Manager, Vito can provide discretionary investment management services. With Private Investment Management, your investments are managed on a discretionary basis according to multiple risk management strategies including:
Your Investment Policy Statement.
Before we make any trades on your behalf, we’ll work with you to clarify your investment objectives and outline your risk tolerance levels in a written document that we are always accountable to. If your portfolio goes offside, it gets flagged and we’re notified.
A dedicated program risk management group.
The RBC Portfolio Implementation and Risk Monitoring Desk ensures the portfolio is strictly managed according to your Investment Policy Statement, and fundamental investment management guidelines established by the program. These guidelines are in place to ensure prudent portfolio management practices, such as diversification amongst sectors, a suitable asset mix for your investment objectives and quality investments.
Other risk management measures we use include:
- Automatic Rebalancing, this removes emotion at times of heightened uncertainty
- Cash Wedge Strategy, this reduces sequence of return risk
- Unbiased ongoing monitoring of sub-managers
- Stop loss orders on individual stocks