Our Portfolio Construction Framework

Efficient portfolio construction involves creating a diversified portfolio that attempts to maximize return potential for a given level of risk. One way to add value is through a core and satellite approach. With a Core and Satellite approach, core investments provide a broad foundation comprising U.S. stocks, U.S. fixed income and developed market international equities. The core is then surrounded by satellite investments, such as emerging markets, real estate securities and high yield bonds.

Using this approach, investors can:

  • Separate and manage various sources of portfolio risk to improve portfolio structure and efficiency
  • Add return generating opportunities and / or volatility-reducing asset classes to a portfolio;
  • increase the likelihood of meeting their specific financial goals
  • Core strategies provide efficient exposure to asset classes that are broadly representative of the market (much of this market representation comes in the form of equity and interest rate risk). While implementation strategies vary, we believe that a combination of active, structured or passive strategies provide a solid core for most investors.

    Satellite strategies generally deliver higher levels of active alpha (returns derived from skilled active management) or exotic beta (exposure to risk factors with low correlation to global markets) and can enhance expected returns. Examples include Commodities, High Yield Bonds and Emerging Markets.

    why our clients choose us

    We are qualified
    and experienced

    Our clients know that they are dealing with competent, qualified wealth managers: Each member of the BCE Limited advice team has a tertiary education and obtained their Certified Financial Planner. It gives our clients peace of mind that the financial advice we provide is both technically accurate and given with absolute integrit

    They trust us

     

    We believe that people choose to work with others based on how much they like and trust them. It’s not just the words we use, it’s what they see us do that earns their trust. At BCE Limited, each touch point within our business earns us the trust of our clients and we work hard to ensure that their trust is never eroded. We cultivate solid, long-term relationships founded on integrity and trust.

    We get to know
    each client

    Our team spends time listening, getting to know each client’s needs and desires. We then design a strategy plan with bespoke solutions that speak directly to their goals and dreams. This approach sets us apart from many firms that simply act as ‘product pushers’.We help our clients to make sense of the numbers, by converting complicated concepts into jargon-free, plain language.

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    Worldwide Access To Markets

    We offer institutional and retail clients multicurrency execution capabilities in over 65 exchanges. Clients can buy and sell foreign currencies, equities and fixed income securities assisted by our expertise and local market experience in Central and South America, Europe and Asia. Our clients can take advantage of the best available pricing through our broad network of counter party bond dealers and can execute their trades in over 50 currencies.

    Multi-Currency Accounts

    Clients can hold cash positions in their investment accounts in over 50 foreign currencies and can receive monthly account statements of assets expressed as a value in both US and in foreign currencies. These multi-currency statements can be received by the client electronically, in paper form or both. Clients can also execute security transactions on more than 65 exchanges around the world. We also offer a range of debit/credit/ATM cards for accessing account cash and making purchases.

     

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    Managing Risk

    • Drawdowns can derail even the best financial plans
    • Traditional measures used to protect against drawdowns (think diversification) can fail at the worst possible time

    As a defense against drawdowns we employ an institutional-quality asset allocation framework that focuses on risk allocation. We prefer to view an investor’s total portfolio not as a collection of stocks and bonds, but by categorizing asset exposures as either A. Return-Generating or B. Risk-Managing.

    We believe the distinction between “return-generating” and “risk-managing” exposures better aligns portfolios and expectations than the distinction between “equity” and “fixed income.

    It's not just about investing the money