BMO Nesbitt Burns
1 First Canadian Place
39th Floor, P.O. Box 150
Our Investment Process
Our Investment Philosophy
David Bruce’s more than three decades of investment experience has yielded two important truths.
First, being smart and working hard will not necessarily lead you to your long-term investment goals.
Second, free markets are brutally efficient in setting reasonable prices and trying to time markets is counterproductive, costly and unnecessary.
He believes that over long periods, markets pay investors for risk taken. We therefore keep portfolios fully invested and let the markets do their work while using the finest research available to support each investment decision.
Diversification is essential to intelligently assuming investment risk
Diversification reduces portfolio volatility because different holdings don’t move in lock step. While some rise in value, others will decline. We believe in being broadly diversified by selecting several, well-defined asset classes for each portfolio. For equities, we may use Canadian, U.S., international and emerging markets holdings. We emphasize short-term, high-quality assets when determining our portfolios’ fixed income exposure.
Enhanced asset classes are key
We use a consistent asset class approach with tilts to "value” and "small cap” stocks. This approach lends itself to low-costs, tax efficiency and diversification. We also protect clients from the tendency to invest in different securities as they go in and out of favour. This helps them to avoid high trading costs and the temptation to drift off course in the pursuit of short-term returns.
Keeping fees, expenses and all other costs low is critical in any market environment. Because we design portfolios using low-cost strategies, trade patiently and closely monitor management fees, our clients are more likely to achieve their financial goals sooner.