What does it actually mean to be ‘diversified’?
In a traditional approach, the asset allocation is often 60% equities and 40% bonds. In this scenario, being ‘diversified’ means ensuring that you have various kinds of equities and bonds (usually a combination of Canadian and global investments).
In our view, this typical ‘model’ portfolio is limited.
NWM Asset Allocation Mix (Balanced Portfolio)
Broad Asset Allocation and Extensive Portfolio Diversification
We believe that portfolio diversification means more than simply owning different types of stocks and bonds.
Our extensive diversification strategy starts at the beginning – with the asset allocation.
We move beyond the traditional approach to include other asset classes, including mortgages, preferred shares, income-producing real estate and alternative strategies.
Why include such a broad range of asset classes?
- True Diversification: instead of simply investing in different types of stocks and bonds, you are diversifying into different asset classes, providing greater stability.
- Non-Correlated Investments: having investments that are not tied to each other means that their performance is dictated by smart selection and not market volatility.
Investment Philosophy
founded on two important concepts
