Maintaining Asset Allocation

Maintaining asset allocation is one of the most effective ways for your clients to reach their financial goals. Not only does it help keep a portfolio aligned with a client’s investment goals, it also gives them opportunity to buy low and sell high. As advisors, you face the challenge of keeping your clients’ portfolios in balance. This can be a daunting task. However, there are two very easy ways to keep your clients’ portfolios in check. Firstly, use portfolio funds or funds-of-funds. These funds are automatically rebalanced by the fund manager. Secondly, Canada Life will automatically rebalance your clients’ portfolios when you use individual funds. This is a great service and here’s how it works:

  • Automatically adjusts your asset mix on a quarterly, semi-annual or annual basis

  • Select the point at which your portfolio is rebalanced anywhere from two to 10 per cent away from your original asset allocation

  • Available on all segregated funds except Real Estate Fund (GWLRA)

  • Service is available at no additional cost

This option is available from Canada Life at any account size. Usually, a client needs to be in a high-net-worth product to receive this service. Maintaining asset allocation is, perhaps, the simplest and most effective way to make sure your clients reach their financial goals. As always, I look forward to your comments. And, remember our Fall Classic Contest, the Razor Financial Planning Software promotion from Equitable Life, and the 1% bonus from Empire Life on non-GMWB contracts. Take care, Scott Edgington Director of Wealth Qualified Financial Services