There are two ways to invest in capital markets. The most prevalent way for retail investors is active management with a team of professionals reviewing information, trends and companies, and then making buy-and-sell decisions for like-minded unit-holders. The other way is passive management which aims to track a benchmark. The big difference is that passive products usually cost less.
Most actively managed mutual funds underperform their indexes and there is no evidence that those that outperform can be identified at the outset. I consider the impact of cost. Before using expensive alternatives, I look for cheaper products that offer a similar investment mandate. As a result, I generally recommend low-cost products which are often more tax-efficient due to lower portfolio turnover.
I see my job as explaining the differences up front. I make decisions based on my own assessment of whether added costs for certain products are justified. I explain your options in terms you can understand and perform my duties to the best of my abilities using tools which most likely lead to successful investing and a positive outcome. But we must accept that the future is always uncertain.
Although portfolio management is a major part of what we do, people often lose sight of ‘comprehensive wealth management,’ which really is what I do. That includes everything from buying a house to burying a spouse. Whenever you have a question regarding financial matters, I want to be the person you come to first. But I should add that as a Portfolio Manager, I only take new clients on a discretionary basis. That means we codify the risk profiles of clients at the outset, and manage client assets in line with those profiles. Thus, I don’t have to contact clients before making trades, but must ensure that all trades are within the guidelines established at the beginning.
My Associate Brian Smythe is your main point of contact for all matters of account opening and administration. This includes transfers and payments in both directions and reporting. We pride ourselves on responsiveness.
