Portfolio Management

The Winning Process

Many investors start off with a strategy but over time deviate from it or do not continually review and add to it. A portfolio management strategy incorporates a number of components that give you control and vision over your investments. This is critical to achieving what you have set out to do.

Lack of clarity and poor details can greatly impact a portfolio’s performance. I have been asked by many investors to analyze why they got themselves in trouble and much of the time it is due to lack of a strategic plan as well as poor overall management. Some of the areas of failure include:

  • Chasing the last best idea
  • Stock tip or idea from a media source that follows a trend
  • Buying into markets once their run is exhausted
  • Lack of risk management techniques to ensure major losses are averted
  • Not managing currency exposure
  • Over concentration in a specific asset class all can lead to poor and many times negative performance

It may sound daunting but all the techniques once understood are actually rather common sense. The Fortrus Coaching program provides a clear concise path to ensure that major mistakes are averted. Portfolio management success generally comes down to ten critical tools:

  1. Ensuring your portfolio is structured to your goals and risk tolerance level
  2. Determining your asset allocation between growth, fixed income and cash
  3. Working out a currency allocation that maximizes performance and protection of capital
  4. Determining what cycle the markets are currently in, both secular (longer term) and cyclical (sub-trend of the major trend). Simply speaking, are the markets in upward trajectory or downward path
  5. Risk management tools are in place to ensure no major losses will take place
  6. Assessment of sectors and individual companies that are not concentrated in one area and provide great growth prospects – not overbought which is when most investors buy an idea
  7. When necessary, use of inverse funds to protect capital and make money when markets move downwards
  8. Ongoing management of the account as situations change on a constant basis
  9. Minimizing fees as they can greatly encroach upon total returns of a portfolio
  10. Determining your rate of return in Canadian dollars – accountability and goal achievement tool

Fortrus will consistently be referring to one of these ten areas as all can have a major impact on your performance and reaching your ultimate goals. These generally include financial security; retirement planning; education planning; or just peace of mind by not having to worry about this aspect of your life.

Take control over your investments by learning about
how to make others accountable.

We will help you do just that. Right now, most people simply count on their financial institution to provide them with a strategy that works. Unfortunately few are getting the results that they expect. Everyone wants to blame the markets or world economy. The reality is that one or more of the 10 points above are not managed or ignored. It could be that you are invested in a secular bear market just like you were in a secular bull market – a formula for disaster. Many are paying 2-4% fees on their portfolios without knowing it as many fees are hidden and not transparent. Others may have made good choices on owning US sectors or stocks when they rose but lost it all back on currency devaluation. I have seen so many investors put money into a stock/sector after it had its big rise or bought into a stock/sector as it had fallen. Sometimes it may work but much of the time you are following trends and are too late.
All of these situations mentioned above are manageable. It is critical that you take charge and say that you will not fail base on others errors or lack of detail. Win at the process and your family and you will achieve all the goals you set out to do. Everything good requires some work – are you up to the challenge?