Investment principles

My principles of a disciplined investment strategy:

Global diversification — Over 97 per cent of the world’s investment opportunities lie outside Canada and I position your portfolio to benefit from them. As an advisor with Macquarie Private Wealth, I am part of the global Macquarie Group and have access to the best investment ideas and resources from around the world.

Ownership of high-quality securities — I favour global, industry-leading companies with a history of delivering predictable earnings and growing dividends through different economic cycles.

Dividend yield to cushion volatility — I seek dividend-bearing securities to provide a steady income stream and mitigate downside risk.

Investment style management — Balancing “growth” and “value” investment styles helps reduce portfolio volatility and improve returns.

Tax-sensitive investing — I help you keep more of what you earn — tax efficiency improves long-term returns. I can help you and your spouse follow strategies to take advantage of tax-minimizing opportunities.

Risk Management — I diversify by asset class, geography, market capitalization, and economic sector, target position weightings of 3–5 per cent and systematically take profits on winners.

Concentrated Portfolios — I maximize your return/risk equation by holding 20 securities or fewer and monitoring them carefully on a regular basis.

Performance review — Portfolio performance should be reviewed at least annually. Many people have no concrete basis on which to determine the success of their investment strategy.

I gauge the performance of my strategies versus the indices with similar risk and return profiles. “Relative performance” is as important a gauge of success as “absolute performance.”

It is also important to account for money that you have added or taken out of the portfolio. Timing of cash flows can dramatically influence performance calculations.

The comments contained herein are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own tax advisors for advice with respect to the tax consequences to them, having regard to their own particular circumstances.