A leading Financial Services and Solution Provider
Investment management is one key part of each client's wealth management process. To manage client portfolios effectively, it is important for Equity Credit Capital to understand each client's financial picture as fully as possible. This allows us to integrate investment management with tax efficient strategies, estate/retirement planning, and asset protection.
Asset allocation, the mix between stocks, bonds and other assets, is the cornerstone to the management of an individual's investments. In initial meetings with the client, we develop a profile of the client's risk tolerance, time horizon and investment objective. Based on this profile and in consultation with the client, we agree on appropriate investment plans and asset allocation targets to help the client reach their financial goals.
However, life never remains static. We are continually in contact with our clients as to the impact of life changes on their investment policy and goals, and modify our strategies to best support those changes. In this fashion, we serve as counsellors and partners to our clients, and we attribute our exceptional client retention rate to this dedication.
Equity Investment Process
We build equity portfolios utilizing individual securities, and the portfolios are broadly diversified by sector, industry and company capitalization. Our long history of institutionally-tested processes allows us to maintain a disciplined, systematic and scalable focus.
The investment process incorporates a multi-factor valuation screening model that evaluates stock prices relative to company financial metrics and to other stocks. The resulting stock ranking provides a starting point for traditional fundamental analysis of the companies. We balance the desire to hold the most attractively-valued stocks with the need to build a broadly diversified, risk managed portfolio. Our long-term orientation means that portfolio turnover is relatively low, limiting transaction and tax costs.
Fixed Income Investment Process
The fixed income portion of a client portfolio is dedicated to enhancing portfolio stability and generating current income. We cover the breadth of the high-quality fixed income market, using taxable and municipal bonds as appropriate to the client situation.
We find that the intermediate maturity spectrum generally offers the best risk/return trade-off for stability-minded investors. To moderate interest rate risk, we use a laddered approach wherein maturities, and thus reinvestments, are spread over several years.