"Price is what you pay. Value is what you get."
~Warren Buffet
OUR METHODOLOGY
We work diligently to know you and your risk tolerance. Investment portfolios are specifically designed based on this valuable information. Risk tolerance serves as the foundation, providing consistency with your expectations, your goals and your level of comfort.
RISK TOLERANCE
What is risk tolerance and why do we measure it?
Risk tolerance is how emotionally comfortable a person is with taking financial risk. For example, how much a person is willing for their portfolio to diminish for a chance to make larger returns. It is psychological and is best measured with a psychometric tool.
By knowing how comfortable a client is with investment fluctuations, we can construct portfolios accordingly; under complete transparency and utmost suitability.
Risk profiling is a process for finding the optimal level of investment risk for each client by balancing risk required, risk capacity and individual risk tolerance.
There is often a mismatch between risk required, capacity and tolerance. With our discovery process, we identify the mismatches and work towards the optimal solution.
Risk
Tolerance
Risk
Capacity
Risk
Required
WHICH IS YOUR PREFERRED INVESTMENT PATH ?
In addition to the results of the risk tolerance analysis, the basis of our overall portfolio management methodology is definitively biased toward conservative, long-term growth. We place a high priority on achieving positive returns, but focus more so on minimizing volatility; willing to sacrifice higher returns to do so.
Volatility
(Risk)
Time Horizon (30 Years)
For illustrative purposes only
High volatility is for those who have the stomach to withstand the wide swings. Generally, high risk offers higher returns. This is only recommended for those with long-term time horizons and high risk tolerances. Common investments: private corporations, small cap equities, commodities, futures.
Medium volatility is for those who aren't looking to swing for the fences. This type of volatility is usually seen in a balanced portfolio. It is recommended for those with medium to long-term time horizons and medium risk tolerances. Common investments: equities, bonds, certain alternative investments.
Low volatility is for those who like knowing with great certainty what they will have in the future. Low risk typically equates to lower returns. Return of capital is more important than return on capital. This is recommended for those with short-term time horizons and low risk tolerances. Common investments: cash and government bonds.
Aligned Capital Partners Inc. (“ACPI”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through LL Investments of ACPI, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/LL Investments and covered by the CIPF. Insurance and Group Benefits and financial plan consulting services are provided through LigonLevy Wealth. LigonLevy Wealth is an independent company separate and distinct from LL Investments of ACPI.
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