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Chapter 16: The Portfolio Management Process

In this section

  • Overview of the Portfolio Management Process
    Discover a comprehensive, repeatable approach that guides Canadian investment professionals in building portfolios aligned with client objectives and regulatory compliance.
  • Step 1: Determine Investment Objectives and Constraints
    Learn how to define and document a client's investment objectives and constraints, forming the foundation of successful portfolio management in Canada.
  • Step 2: Design an Investment Policy Statement
    Designing an Investment Policy Statement (IPS) is crucial in the Portfolio Management Process. Learn how to define client objectives, establish asset allocation targets, set benchmarks, and incorporate ESG and regulatory considerations in Canada.
  • Step 3: Develop the Asset Mix
    Discover how to strategically develop and adjust a portfolio’s asset mix in the Canadian financial market, aligning long-term investment objectives with market conditions and regulatory guidelines.
  • Step 4: Select the Securities
    A comprehensive overview of selecting individual securities within each asset class, focusing on Canadian market regulations, best practices, and real-world examples.
  • Step 5: Monitor the Client, the Market, and the Economy
    Stay ahead of evolving client needs, market dynamics, and economic signals with disciplined monitoring and timely adjustments to portfolio strategies in Canada.
  • Step 6: Evaluate Portfolio Performance
    Learn how to measure the effectiveness of a portfolio against benchmarks, using risk-adjusted metrics and detailed attribution analysis within the Canadian context.
  • Step 7: Rebalance the Portfolio
    Learn how to strategically realign your portfolio to maintain target allocations, minimize risk, and stay aligned with Canadian regulations and tax considerations.
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