Every client is unique, as will be their investment portfolio

The goal of investment management is finding the ideal balance between growth and risk management. Asset allocation establishes the division of an investment portfolio by asset class. This can include stocks, bonds, money market funds, ETFs, and alternative investments. Equity investing is further classified into several general investment strategies. Well-rounded portfolios comprise a mixture.

The foundation of our investment philosophy is buying quality, taking a long-term view and establishing appropriate diversification.

Growth Investing

Growth stocks are shares in companies growing at higher rates than the market average. Investors buy growth stocks seeking capital gains. Price/Earnings ratios are often higher because investors will pay a premium in expectation of future earnings. Growth stocks do not generally pay dividends because the underlying companies reinvest earnings to accelerate their own growth. Growth investors seek upside potential and will tolerate more volatility and risk.

Value Investing

Value investors look for stocks that trade at prices below their intrinsic value. Stock market prices fluctuate more than the day-to-day value of these companies. Value investing involves a longer-term hold period. Investors with a solid understanding of a company can profit from over-reactions to negative news. Short-term selloffs of healthy companies that fall short of earnings expectations often present opportunities for value investors.

Income Investing

The primary goal of income investing is to generate an income stream. A secondary goal can be to provide stability to a portfolio. Blue-chip stocks, preferred shares and REITs can generate reliable sources of income. Many countries charge lower tax rates for dividends than interest income. Dividend Aristocrats are companies that increased dividends every year for a minimum of 25 consecutive years.

Private Equity Investing

Private equity investing involves buying shares in a company that is not yet publicly trading. Traditionally, this was the domain of the wealthy. This is no longer the case. Capital raised through private equity is used for start-ups, restructurings and to finance taking a company public. Private equity investing can generate substantial returns. The trade-off is they can be higher risk and less liquid.

A Balanced Approach

Diversification is the most important tool in wealth management. We diversify investment portfolios across different asset classes, industries, market sectors and geographically. Grasping the nuances within equity investing helps clients understand the reasons behind different recommendations and helps with decision making.