A Balanced Approach To Ensure Wealth Preservation And Conservative Growth
In selecting equity securities I:
Subscribe to a proprietary mathematical methodology built on an intricate platform that analyzes a company's balance sheet strength, price potential and appropriate valuation range. The methodology identifies and isolates unusual values in the stock market, both high and low, seeking out value wherever it exists.
In selecting fixed income instruments I:
Prefer to buy individual government, provincial, municipal and select corporate bonds rather than bond funds. I believe in buying bonds with staggered maturity dates to ensure liquidity, and to manage interest rate risk. Structuring a laddered fixed income portfolio with investment in successive maturities allows you to obtain the following goals with your invested funds:
- Achieve a potentially higher rate of return over time, by consistently "rolling" invested funds out to longer-dated, higher yielding maturities.
- Maintain short-term liquidity, by always having maturities pending within your portfolio.
- Minimize reinvestment risk, that is, reduce the risk of having to reinvest all of your funds at a time of low interest rates.
In selecting income trusts I:
Invest in a portfolio of Canadian income funds, constructed by selecting the income trusts in each of the following four sectors (Business and Industrial Funds, Real Estate Investment Trusts, Commodity based Royalty Trusts, and Pipeline and Power Generation Funds) with the lowest payout ratios. The "payout ratio" of an income fund is defined as the percentage of its estimated cash flow after maintenance capital expenditures that are expected to be paid out in order to meet currently indicated level of distributions. I believe that the lower the payout ratio, the greater the likelihood that an income fund will be able to meet its distribution targets.
I will buy mutual funds:
- To diversify internationally where we cannot buy individual stocks
- To diversify within the global real estate market
- For smaller portfolios where we cannot buy enough stocks to be well diversified
- For clients who do not want to own individual stocks due to personal preference
Fees:
For fee-based clients, I offer one low, all inclusive asset-based fee. This fee covers your advice, service and transactions required to implement and monitor your recommended portfolio.
I also offer a transaction-based account with commissions on stocks and bonds, and 0% commission on over 2,000 mutual funds.
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