Cardinal Point Wealth Management

Your Cross-Border Financial Advisor

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  • About Us
    • Our Story
    • Our Team
    • Our Clients
    • Legal and Compliance
    • Part 3 Form CRS
    • Relationship Disclosure Information
  • What We Do
    • Investment Management
    • Wealth Planning
    • Tax Planning and Preparation
    • Private Wealth Services-U.S.
    • Private Wealth Services-Canada
    • Cross Border Wealth Management, Financial and Tax Planning Advisor
    • Business Management for Athletes
    • Indigenous Wealth Services
  • Cross-Border Services
    • Cross-Border Wealth Management, Financial and Tax Planning Advisor
    • Cross-Border Financial Planning
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    • U.S. citizens living in Canada
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    • Canadians Living in the U.S.
    • Moving to the U.S. from Canada
    • Expatriates Living Abroad
  • Blog

Asset Allocation

ASSET ALLOCATION

Cardinal Point approaches investing from a scientific perspective. We leverage Modern Portfolio Theory, using mean-variance optimization to help put together the most efficient portfolio allocation possible.

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ASSET ALLOCATION

Cardinal Point approaches investing from a scientific perspective. We leverage Modern Portfolio Theory, using mean-variance optimization to help put together the most efficient portfolio allocation possible.

Let’s Talk
Investment books
  • Risk Tolerance & Capacity
  • Asset Allocation
  • Investment Implementation

We approach investing from a scientific perspective. We leverage academic research, starting with the pioneering work done by Dr Harry Markowitz, who won the Nobel Prize in 1990 for Modern Portfolio Theory. Markowitz’s now well-known theory uses mean variance optimization to help put together the most efficient portfolio allocation possible, taking into consideration not only the expected returns and volatility of asset classes, but also how the different asset classes covary with one another.

Professors Eugene Fama and Ken French put forth the notion of premiums within different types of stocks with their research on value and small companies. Their work showed that by tilting a portfolio towards stocks which were trading on a cheaper relative basis to their peers, or were smaller, unproven companies, investors could receive positive expected premiums compared to the market over the long term. Later work by others showed similar results when sorting companies by momentum or relative profitability. Sorting stocks in a quantitative manner like this is often known as factor investing or smart beta.

core satellite

We build our asset allocations by looking first at your desired risk tolerance and risk capacity and then applying academic research to determine first, the balance of stocks and bonds in your portfolio and then the composition of the stock and bond portions. In practice this is done so utilizing a Core and Satellite approach.

Core Areas

This approach assigns the largest weights to those core areas of the market such as:

  • US Stocks
  • Canadian Stocks
  • International Stocks
  • Investment Grade bonds

Satellite Positions

We then add on smaller satellite positions with the goals of either higher expected returns or enhanced diversification. Examples of these positions include securities targeting:

  • Factor premiums, such as Value, Small, Momentum, or high Profitability stocks
  • Low Volatility Stocks
  • Real Estate Investment Trusts
  • Emerging Market Stocks
  • International Bonds
  • Market Neutral Strategies
  • Commodities
US/Canada Investment Accounts

Investment accounts in Canada and the U.S.?

Our team manages assets in both countries
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Goal Based Investment Strategies

Goal-based Investment Strategies

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OUR RECENT PUBLICATIONS

gifting, college funds

Cross Border Financial Planning – Non-Arm’s Length Cross-Border Gifting

When gifting assets in a non-arm’s length transaction, there are many financial and tax complexities to consider based on U.S. and Canadian laws. Where you and the recipient live, their immigration status, and the nature of their relationship all come into play. That’s true whether you give the gift of college tuition or a down payment on a home to a child, you are using an estate planning gifting strategy between spouses to avoid lengthy probate, or you are gifting property like jewelry or automobiles. This article provides insights to help you avoid unwanted and potentially steep tax liability and to ensure a smoother gift giving process.

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college fund RRSP

Cross Border Wealth Management: Navigating your RESP

A Registered Education Savings Plan (RESP) is a powerful asset when saving to pay for post-secondary education. College tuition had already become almost prohibitively expensive, years before recent historic inflationary pressures made the cost of higher education rise even more dramatically. That’s a constant challenge for parents who want to help fund their children’s post-secondary education. Navigating those challenges becomes more complicated when the RESP subscriber or the beneficiary reside in different countries. This article gives you an informative overview of some of the most common challenges, and insight into the most effective ways to proactively manage an RESP as part of your cross-border tax and financial planning.

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cross-border worker

Navigating Residency and Income Sourcing for Internationally Mobile Employees in Canada

Traveling across national borders for employment is increasingly common, and many Canadians derive income while working in the U.S. Similarly, many U.S. residents visit Canada to work for Canadian employers. But doing so can potentially expose you to complex tax rules, liabilities, and double taxation. That’s why strategic cross-border tax planning is essential to ensure full compliance with the tax laws of both nations while helping to minimize the taxes you are obligated to pay. This blog explains the nuances of cross-border tax law, how those may impact you, and solutions for navigating the complicated tax regulations.

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How We Help

  • Cross-Border Financial Planning
  • Cross-Border Tax Planning
  • Cross-Border Estate Planning
  • Cross-Border Investment Management
  • Americans Living in Canada
  • Canadians Living in the U.S.
  • Moving to Canada from the U.S.
  • Moving to the U.S. from Canada
  • Expatriates Living Abroad

What We Do

  • Investment Management
  • Wealth Planning
  • Tax Planning & Preparation
  • Private Wealth Services for U.S. Residents
  • Private Wealth Services for Canadian Residents
  • Cross-Border Financial & Tax Planning
  • Business Management for Athletes

Resources

  • Canadians in California
  • Canadians in Texas
  • Canadians in Florida
  • Canadians in Arizona
  • Canadian and U.S. Expat Tax Planning
  • Wealth Management for U.S. Citizens in Canada
  • Calgary Financial Planner
  • Custodian Closed Your Cross-Border Investment Account?
  • Part 3 Form CRS

Videos & Social Media

  • Americans in Canada: Investment Basics
  • Americans Selling Canadian Homes Face Tax Issues
  • Does it make financial sense to renounce your U.S. citizenship?
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“Cardinal Point” is the brand under which dedicated professionals within Cardinal Point Capital Management, ULC provide financial, tax and investment advisory, risk management, financial planning and tax services to selected clients. Cardinal Point Capital Management, ULC is a US registered investment advisor and a registered portfolio manager in Canada (ON, QC, MB, SK, NS, NB, AB, BC). Advisory services are only offered to clients or prospective clients where Cardinal Point and its representatives are properly registered or exempt from registration. This website is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.