Portfolio Management

Antworthy Investment Management offers discretionary portfolio management for clients of varying means and circumstances.  Accounts are held in your name and can be managed on a standalone basis or be grouped with others as part of a family of accounts.  Your assets can be held at Credential Securities Inc. and/or National Bank Independent Network Inc.

After you provide us with the necessary information to assess your investment objectives and tolerance for volatility, we will provide you with a personalized investment policy document.  This document is a snapshot of your financial circumstance which includes your return objectives, tolerance for volatility, time horizon, liquidity or income needs, and any unique preferences or circumstances including tax considerations and legal and regulatory constraints.  Your personalized investment policy document will also identify your neutral asset mix – defined as the appropriate split between fixed income and equity securities under normal financial market conditions.

The Portfolio Manager’s analysis of current economic and financial market conditions will be reflected in model portfolios that are used to guide the portfolio construction process for your accounts.  Model portfolios are monitored and actively managed by the Portfolio Manager and changes made to the model portfolios are implemented in client accounts simultaneously.

Discretionary investment management is suitable for those who wish to leave the investment decision-making process to a registered portfolio manager.  By becoming an Antworthy client, you have decided to participate in building the framework by which your investment accounts will be managed, and you have chosen Antworthy for the construction, implementation, and management of your portfolio.  This doesn’t mean you’re kept in the dark with respect to investment strategy as regular updates are provided to ensure you remain informed about the portfolio manager’s outlook and the manner by which portfolios are positioned.

For most people, portfolio diversification is the key to maintaining the investment discipline required to achieve above average long-term returns.  The primary goal of portfolio diversification should be to limit large drawdowns of capital.  By doing so, an investor is able to more easily maintain investment discipline during times of market stress, enabling a faster recovery of capital when market conditions improve.

One of the more traditional ways of creating portfolio diversification is through the asset mix decision: to determine the percentage of an investor’s portfolio that should be dedicated to the fixed income asset class and the percentage of a portfolio that should be dedicated to the equities asset class.

However, under the stressed market conditions typically associated with large capital drawdowns, most financial securities tend to become highly correlated to one another.

Analysis must be done to combine financial securities that maintain relatively constant correlations during stressed market conditions.  Otherwise, a portfolio will not provide the benefits of portfolio diversification at a time when it is most needed.

Antworthy complements the asset mix decision with a three pronged security selection approach by combining securities that:

  1. Consistently do well in normal financial market environments
  2. Consistently do well in stressed financial market environments.
  3. Consistently are not impacted positively or negatively by the financial market environment.