 Trust in a proven process.
Your BMO Nesbitt Burns Managed Portfolio Account will be highly personalized for your specific needs, yet your Portfolio Manager will follow a proven process to construct and manage your portfolio. This approach helps ensure that you can delegate the management of your investments with total confidence. Your Portfolio Manager will carefully assess your needs, design an investment strategy based on time-tested investment methodologies and world-class investment research, and demonstrate a total commitment to acting in your best interests every step of the way.
Investment Policy Statement
Your personal Investment Policy Statement is the foundation on which your Managed Portfolio Account is built. It guides your Portfolio Manager in building and managing your portfolio and serves as a constant benchmark against which to measure your progress. To begin, your Portfolio Manager will work with you to build a comprehensive picture of you as an investor – everything from your current financial situation to your long-term objectives and any special circumstances. Based on this analysis, your Portfolio Manager will develop your personal Investment Policy Statement, setting out your objectives and the types of investments you will own. Your Investment Policy Statement also outlines your overall investment profile – for example, whether you are a conservative investor focused on capital preservation, or a moderately aggressive investor seeking growth. For you, as well as your Portfolio Manager, your Investment Policy Statement is an essential document that helps plan and direct your progress for the future. You can have the peace of mind of knowing that your investment portfolio is professionally managed in accordance with your most important needs and wishes.
Asset Mix
Stocks, bonds and cash each have unique risk and return haracteristics,
with higher expected returns generally correlating to higher expected volatility. A portfolio that’s diversified across each of these asset classes can help you capture a fuller range of opportunities, including those with higher growth potential and those with the potential to reduce volatility. Your Portfolio Manager will develop an asset mix for your portfolio that prudently balances your desire for growth or income with your need to protect valuable capital. Over the long term, this asset mix decision will typically have a greater impact on investment returns and performance than security-specific decisions—accounting for over 90% of portfolio volatility.* Defining the asset mix of your portfolio is a critical step towards achieving the goals defined by your Investment Policy Statement.
Portfolio Construction
In constructing your portfolio, your Portfolio Manager can draw on the deep resources of BMO Nesbitt Burns and BMO Capital Markets. This includes our top-ranked equity research†, the work of third-party research
providers, and the expertise of our trading desks. Your overall asset mix strategy will set the framework to build your portfolio. Once that framework is set, your Portfolio Manager will invest in a mix of investments from a wide range of investment opportunities, based on your Investment Policy Statement. The BMO Nesbitt Burns Managed Portfolio Account is not a one size fits all solution – your portfolio is designed and managed for your specific needs. Since you directly own the holdings in your account, your Portfolio Manager has added flexibility to select unique investments, recommend particular trading strategies, and address issues such as increasing the overall tax efficiency of your portfolio.
Portfolio Management
Markets are always changing, and your Portfolio Manager has a finger on
the pulse of economic developments. By synthesizing information gleaned through independent study, insights from BMO Financial Group analysts and economists, and esteemed third-party research groups, your Portfolio Manager is well-equipped to anticipate and respond to these developments in a manner that is consistent with the goals set out in your Investment Policy Statement. With the ability to act on your behalf, your Portfolio Manager can make adjustments to your portfolio designed to take advantage of market opportunities or to limit potential risk.
Review and Monitor
You will be kept well informed through regular contact with your Portfolio
Manager as well as a monthly statement of account that details your holdings, transactions and the value of your portfolio. Over the years, your evolving personal needs may dictate changes to your Investment Policy Statement or portfolio composition. You will always have an open line of communication with your Portfolio Manager to ensure that you understand the activity taking place in your portfolio, and that your investment strategy and your life goals remain clearly aligned.
Managed Portfolio Account
* Brinson, Gary P., Randolph L. Hood and Gilbert L. Beebower. "Determinants of Portfolio Performance.”
Financial Analysts Journal. July/August 1986.
† Brendan Wood International Institutional Equity Research, Sales and Trading Performance in Canada
1980 – 2007 |