Based on our investment philosophy, the following outlines our process and models.
To ensure that clients with similar objectives receive similar returns we maintain Model Portfolios. These models are designed and updated by our team regularly and are road maps for portfolio construction.
Every client comes to The RaeLipskie Partnership with a different set of portfolio holdings, in some cases, holdings with significant taxable capital gains, some with mutual funds. Restructuring toward our models is done gradually in a cost and tax effective manner. As well, we are able to accommodate specific client restrictions if necessary.
For our growth-oriented clients, we concentrate on large, well-financed companies with successful records, good management and the ability to increase earnings and dividends. We leave room for a few small strategic investments in emerging growth companies with dominant products in promising sectors.
For our clients with tax-effective income requirements, we invest in high quality companies paying significant and growing dividends. In addition, we may invest small amounts in Income Trusts, producing dependable cash flow from their businesses and secure distributions to unit holders.
For our clients who want growth with a steady income stream, we recommend our Hybrid Model. This process selects the best in class from both the Growth and Dividend Models to produce growth and income. Ideal for clients who want the peace of mind an income stream will produce, yet with the opportunity for growth. This model will exhibit a higher degree of volatility than the Dividend Model, and less volatility than the Growth Model.
United States and International
These models make extensive use of Exchange Traded Funds (ETFs). These instruments, traded on stock exchanges just like individual stocks, allow us to achieve broad diversification for clients at very low cost, while allowing room to target attractive areas which we identify. For large portfolios, we invest in individual stocks in foreign markets, using the same criteria as in our Canadian Growth Model.
Our Fixed Income Models encompass bonds and preferred shares. Again high quality is a must. We select bonds and preferred shares which fit each client’s circumstances and produce income.