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OUR PORTFOLIOS

The Westcourt Series

To build this series of portfolios, we hired Westcourt Capital. Founded in 2009 with the mission of becoming the premier investment advisory firm in Canada, today the firm advises on more than $2.5 billion in institutional and high net worth assets.

Income with Growth Portfolio

The Income with Growth Portfolio is designed for conservative investors who are looking to protect their invested capital while still earning a modest rate of return over the long term. Because preservation of capital is important the portfolio is heavily weighted towards more defensive fixed income investments with a modest exposure to more growth oriented equity investments.

Balanced Portfolio

The Balanced Portfolio is just that - a balance between income and growth. It's designed for investors looking to earn a reasonable rate of return, while working to reduce the fluctuation in returns over the long term. To achieve this, the product holds half the portfolio in more growth-oriented, equity focused investments, and half in more defensive fixed income.

Growth with Income Portfolio

The Growth with Income Portfolio is targeted at investors who are looking to grow their portfolio without taking on excessive risks. The portfolio is more balanced, with a majority invested in growth-oriented, equity focused investments, and approximately 40% invested in more defensive fixed income.

Growth Portfolio

The Growth Portfolio is for investors looking to grow their invested capital. To do this, it holds approximately 80% of its portfolio in growth-focused equity investments, and the balance in more defensive fixed income. This asset mix allows for long term growth potential of capital, while the fixed income holdings can help keep the portfolio's fluctuation in check.

High Growth Portfolio

The High Growth Portfolio is targeted at investors who have a long term time horizon, are comfortable with volatility, and are looking to grow their investment over time. The portfolio is fully invested in growth-focused equity investments, and has exposure to both large and small cap companies. This is not something you should invest in if you think you may need to access your funds in less than 5 years.

Portfolio background

The lead investment manger on the portfolios, Dave Paterson CFA, has built a long track record as one of  Canada's independent mutual fund analysts. Mr. Paterson has been in the mutual fund industry since 1994, and since 2002 has been providing mutual fund, hedge fund and EFT research to financial advisors. Today he covers nearly 2,500 mutual funds and more than 300 EFTs on a monthly basis using his proprietary fund valuation model that helps identify funds with a history of delivering superior risk adjusted performance.

Dave Paterson has also built a fully customizable Portfolio Optimization Model that helps build portfolios designed to provide the highest return possible while minimizing the volatility.

Private Client Portfolios provide excellent value

  • Portfolios have a strong focus on reducing volatility and protecting capital, while still providing the potential from strong relative capital growth. The goal: make sure investors are well compensated for the risks they take.
     

  • Portfolios are managed by one of Canada's independent mutual fund analysts.
     

  • Portfolios are designed to include some of the most respected institutional focused money managers in the country.
     

  • Portfolios are built using a very disciplined, repeatable process.

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The portfolio construction process

The portfolio construction process is a multi-step process that blends quantitative and qualitative analysis at each step.  

 

The disciplined portfolio process involves a number of steps.

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Qualitative Fund Analysis - Quantitative analysis helps identify the funds that have a strong track record of out performance. Qualitative analysis helps distinguish good managers from lucky mangers. Dave reviews the people, investment process and risk management regime, then seeks to understand who the managers are, how they manage, what makes them tick, and what controls are in place to protect investor capital. Only after a fund passes both the quantitative and qualitative review can it be considered for inclusion in a portfolio. 

Set Expected Risk Reward Metrics - The Fund Valuation Model used in the quantitative review provides a forecasted return, volatility and correlation number, which are the inputs to the Portfolio Optimization Model. However, sometimes these numbers need to be adjusted to reflect the current situation or information learned in the qualitative review.

Run the Portfolio Optimization Model - Once the inputs are finalized, the Optimization Model is run to set the portfolio mixes for each investor type. Dave then reviews the mixes, and does some back and stress testing to ensure the risk reward metrics are in line with the needs and objectives of each investor type. The portfolios are then finalized.

Ongoing Monitoring - Dave monitors the portfolios to ensure they're performing as expected given the current market conditions. He also monitors individual holdings, looking for significant variations in the risk reward metrics. If a change is necessary, it will be suggested. He also monitors the portfolio weights and may suggest a rebalance to protect gains and help enhance risk adjusted returns.

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Quantitative Fund Analysis 

 

Each month, approximately 2,500 investment funds are rated and ranked on six key investment criteria:  

 

  • Alpha

  • Volatility

  • Sharpe ratio

  • Information ratio

  • Batting average

  • R-squared

 

These factors are scored for each fund and the funds with the best scores are reviewed on a qualitative basis.

More on how the portfolios are built

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