Portfolio Strategy - Wealth Stewards

Infographic of a man standing on a ladder holding one piece of a pie chart

We specialize in designing diversified portfolios that aim to generate the best possible returns while minimizing risk.

Our team of experienced professionals have a deep understanding of the financial markets and use this knowledge to carefully develop and manage unique strategies that have a history of generating superior risk-adjusted performance.

Infographic of a balancing scale, one side holding coins and a sack, other side holding gears and a light bulb

We understand that success in investing is about balancing your assets.

Studies have shown that 91.5% of portfolio return is driven by asset allocation. That is, holding the right asset classes vs. picking the right stocks. Some traditional asset classes, like publicly traded bonds have become ineffective in today’s low interest rate environment, as they perform best during periods of high or declining interest rates. Stocks have become more volatile and are not always right for more cautious investors. Every portfolio should be designed within your comfort zone to achieve returns to help you achieve your goals at the lowest risk possible.

Risk assessment written on a sheet of paper on a clipboard with a magnifying glass hovering over it

Scientific Risk Assessments

To find your comfort zone, we utilize an innovative risk assessment tool based on the principles of behavioral finance. This assessment allows us to understand you and your motivations deeper than a standard risk assessment in order to determine the appropriate portfolio structure.

Our Investment Philosophy

Financial portfolio comparison pie charts, one showing a typical portfolio breakdown and the other the Portfolio Stewards breakdown

Equities

Equities can provide one of the best hedges against inflation but can also go through periods of volatility. Our equity strategy seeks to identify and invest in large and successful companies with histories of consistent and predictable earnings growth, purchasing them at reasonable prices and diversifying the holdings to control risk.

Our investment management team has over 70 years of combined experience and manage our equity strategy by investing in the largest and most successful companies in North America, with recognizable names, to minimize investor expenses.

Private Investments & Alternatives

On their own, equities can be too volatile. By combining them with private lending and real estate, as an alternative to traditional fixed income products, we create an effective and stable counterbalance and generate strong, tax effective income flows.

Portfolio Stewards has been a leader in the relatively new private debt asset class, where most advisors and advisory firms have been slow to broaden their offerings into this new asset class.

Major pension funds like Canada Pension Fund and Teacher’s Pension Fund have shifted major portions of their portfolios from public to private to generate risk-adjusted returns and we are simply following their lead. This shift has created a new asset class that is able to replace some of the less effective traditional asset classes.

Our Private Investing Strategy

Portfolio Stewards is continually evaluating new funds and opportunities as they come available. We invest in private opportunities that are managed by strong, experienced management teams with a focus on protection of investor funds first and generating equity-like returns.

Some examples include residential mortgages, loans backed by receivables storage facilities, music royalties and life settlements to name a few. Each of these are currently generating high single digit returns and monthly income.

Learn more

Due Diligence

Before we consider any new investment opportunities, we have a rigorous internal due diligence process. After investing in a fund, we conduct quarterly interviews with fund managers to keep up-to-date with the status of the fund and address any questions that arise. These interviews are recorded and available for viewing by our clients in our Due Diligence Library.

To demonstrate our commitment to this new asset class, we have created a new site to educate investors about this new asset class and new investment concepts.

Learn more