Build your portfolio with
financial services at the core

Financial Services at the Core

The short-term direction of stock markets is beyond anyone’s control and, whenever things appear unmanageable, can cause anxious moments for unprepared investors.

The goal is to have your investment portfolio performing in all market conditions.

One way to take control is with portfolio construction (the strategy, or logic, of how a portfolio is built).

Are you able to look at your investment portfolio and see “a logical structure”? Or do you see a random mix of unconnected investments?

A well-constructed portfolio has a plan and a framework to keep you focused through the normal ups and downs of investing.

Rational portfolio

At AIC, we think a rational portfolio aimed at long-term wealth creation should have two parts.

1. The first part is the core, where 50% of your assets are invested.
2. The second part is investments which are countercyclical to the core.

It makes sense, at the heart of your portfolio, to hold businesses from the best long-term growth industries. Historically, financial services have been a high-performing industry:

• Wealth management;
• Banks: and
• Life insurance companies

Countercyclical sectors

The second part of your rational portfolio should be invested in countercyclical sectors of the economy to offset inevitable periods when financial services are out of favour with markets. Some examples of countercyclical industries include:

• Real estate;
• Infrastructure;
• Health care;
• Resources; and
• Industrials

Ultimately, the goal is to have your investment portfolio performing in all market conditions to help you manage those anxious times.

Q: What are the characteristics of banks and insurance companies?

A: Longevity, conservatism, huge profits.

There’s no doubt that banks and insurance companies are able to achieve longevity, conservatism and huge profits. But how do they do it? They invest primarily in:

• Banking (retail and commercial)
• Wealth management
• Capital markets
• Insurance

At AIC, not only have we put together funds to simulate this model, but we’ve also taken it one step further – reduced volatility.

We’re pleased to bring forward a number of new and unique Funds that seek to achieve:

1. Longevity;
2. Conservatism;
3. Huge profits; and
4. Reduced volatility