Portfolio Design

Each month we assess the investment products available, and screen them down to create the Hatch & Muir Preferred List.

As independent financial planners, we have direct access to financial instruments offered by Canadian mutual fund companies (Mutual Funds are available through Worldsource Financial Management Inc.), insurance companies, and a number of banks and credit unions. It is important to use screens, filters, and quantitative analysis to recommend only those financial instruments that meet our criteria for performance and volatility.

Portfolio Design

Because we use a financial planning approach, an overall portfolio yield is determined that will meet the clients objectives. Once a return is established, we assess the client’s risk tolerance using our risk questionnaire to ensure it is consistent with the return required to meet their objectives. The response is quantified, and each fund that we recommend is assigned a risk rating. The portfolio risk is a weighted value, depending upon the asset mix. We manage to these risk ratings and periodically adjust the asset mix to ensure that the portfolio reflects the clients risk tolerance, return expectations and time frame. Individual portfolios are reviewed quarterly.

Other financial products, such as annuities, term deposits or GIC’s are reviewed, based upon:

  • Competitive returns;
  • Financial strength of the financial institution;
  • The “fine print” contained in the contract, which may create cost or duration of commitment to a particular investment product or institution.