ASSET ALLOCATION
Through decades of research and experience, we have established the fundamental principals of a sound investment philosophy. Building a portfolio designed to achieve your goals is not just our mission – it’s our discipline. By utilizing bonds, stocks and alternative investments, we apply Modern Portfolio Theory and mean-variance optimization techniques to construct portfolios tailored to your unique situation.
ASSET ALLOCATION
Through decades of research and experience, we have established the fundamental principals of a sound investment philosophy. Building a portfolio designed to achieve your goals is not just our mission – it’s our discipline. By utilizing bonds, stocks and alternative investments, we apply Modern Portfolio Theory and mean-variance optimization techniques to construct portfolios tailored to your unique situation.
We believe decisions regarding an appropriate mix of cash, fixed income, and equities are crucial to satisfying expectations regarding long term portfolio performance.
Appropriate asset mix decisions can only be made after a thorough analysis of each client’s circumstances and tolerance for risk. We do not believe that frequent wholesale changes to asset mix or attempts to time the market add value over the long term. Should changing capital markets or personal circumstances warrant a shift in asset mix, Cardinal Point’s Portfolio Managers have the flexibility and the expertise to adjust portfolios accordingly.
We approach investing from a scientific perspective. We leverage academic research, starting with the pioneering work done by Dr. Harry Markowitz, who was awarded the Nobel Prize in 1990 for his development of Modern Portfolio Theory. This influential framework employs mean-variance optimization to construct the most efficient portfolio allocation possible. It considers not only the expected returns and volatility of each asset class but also how the different asset classes co-vary with one another.
The custom asset allocation we create for each client includes a mix of income-oriented assets (Bonds) and growth-oriented assets (Stocks) that considers your risk tolerance and investment objectives and is often combined with a smaller weighting toward Alternatives, meant to balance out different risks in a portfolio and enhance diversification. In practice, we utilize a Core and Satellite approach.
This approach assigns the largest weights to those Core areas of the market- such as U.S. Stocks, Canadian Stocks, International Stocks and Investment Grade bonds. Those Core exposures may be obtained through individual stocks and bonds or institutional level funds. When funds are utilized, emphasis is placed on:
- Broad diversification
- Minimal cost
- Low turnover
- Tax efficiency
- Liquidity
- Transparency
We then add on smaller Satellite positions with the goals of either higher expected returns or enhanced diversification. Securities employed within the Satellite component adhere to our rigorous quantitative and qualitative security screening process. Examples of these positions could be additional High Quality Stocks, Smaller Capitalization Stocks, Emerging Market Stocks, International Bonds, Convertible Bonds, or Floating Rate Bonds. Additional alternatives such as Commodities, Market Neutral Strategies or Private Markets (such as Private Equity, Private Credit, Private Real Estate or Private Infrastructure) could be considered . The Satellite component is managed using a dynamic investment strategy, and its holdings within the portfolios can be increased or decreased as deemed prudent (for example as the size of an account grows, there may be additional investment options available).
Core Areas
This approach assigns the largest weights to those core areas of the market such as:
- U.S. Stocks
- Canadian Stocks
- International Stocks
- Government Bonds
- Investment Grade Bonds
- US Municipal Bonds (typically for US clients based on their tax efficiency)
Satellite Positions
We then add on smaller satellite positions with the goals of either higher expected returns or enhanced diversification. Examples of these positions may include securities targeting:
- Factor premiums, such as Value, Momentum, or high Profitability stocks
- Smaller Capitalization Stocks
- Emerging Market Stocks
- Commodities
- Private Markets Exposures
- Market Neutral Strategies
- Real Estate Investment Trusts
Who We Serve
Private Wealth Services for Residents of Canada
At Cardinal Point, we work with individuals and families who have made a commitment to excellence and expect it from others. Our clients come to us for a variety of reasons: the expertise of our investment management services; the integration of their tax, retirement, and estate plans; and the simplicity we bring to their complex financial lives.
Moving from Canada to the U.S.
Moving to the U.S. from Canada requires thoughtful financial planning strategies that address departure taxes, transitioning assets and investment interests across the border, managing Canadian dollar investment accounts while tax managing them based on the U.S. tax rules, as well as creating a cross-border estate plan.
Moving from the U.S. to Canada
Many people make the mistake of moving to Canada before addressing their financial affairs, resulting in missed tax-saving opportunities and potential double taxation. Our services are specifically designed to minimize tax liabilities for Americans relocating to Canada. Managing investments, taxes, and financial planning across borders is complex and requires a deep understanding of both U.S. and Canadian laws.
Canadians Living in the U.S.
For Canadians living in the US, it can be difficult to find a local financial advisor or tax practitioner that is well versed in Canada-U.S. cross-border financial planning. This forces many Canadian expats to work with multiple Canadian and U.S. practitioners which can be inefficient and costly. With Cardinal Point, Canadian expats can have the assurance of knowing all of their cross-border financial planning considerations can be addressed by one company.
U.S. Citizens Living in Canada
Our specialized services offer coordinated investment management for both U.S. and Canadian accounts, tailored Canada-U.S. financial and retirement planning, and strategies for U.S. retirement account distributions while residing in Canada. From comprehensive estate planning to optimizing retirement benefits like CPP, OAS, Social Security, and Medicare, we provide holistic advice to ensure financial peace of mind.
Private Wealth Services for Residents of the U.S.
Our clients seek a long-term relationship with a trusted wealth planner who fully understands their situation and goals. These affluent individuals and families grasp the importance of diversifying their investment portfolios, establishing a lasting family legacy, and seeking a more effective and fulfilling method for managing their wealth.
OUR RECENT PUBLICATIONS
Advanced Cross-Border Estate Planning for Multi-Generational Families
In today’s dynamic estate planning landscape, affluent families—particularly those with cross-border ties between Canada and the U.S.—must navigate both opportunity and complexity. While tax law provides powerful tools for wealth transfer, effective estate planning requires more than legal documents. It demands foresight, communication, and alignment across generations. For families with U.S. or Canadian citizenship, U.S.-situs [...]
Featured in the National Post: Kris Rossignoli on Why More Canadian Millionaires Are Eyeing Life Abroad
Kris Rossignoli, Senior Private Wealth Manager at Cardinal Point Wealth Management, is featured in the National Post discussing a rising trend among Canada’s wealthy: the growing interest in relocating abroad. According to a new survey, 28% more Canadian millionaires are now considering emigration compared to the last federal election. This shift is largely attributed to [...]
Section 899 – What Canada’s Wealthiest Investors Need to Know About the Proposed U.S. Retaliatory Tax
For affluent Canadians with significant U.S. investments—whether in real estate, public markets, or U.S. retirement plans—proposed changes to U.S. tax law could quietly and significantly erode your after-tax returns. Under a new legislative proposal—Section 899 of the Internal Revenue Code—the U.S. may impose penalty taxes on residents of foreign countries that it deems to be [...]