Adding Value Through Active Management

The third week of February marked a crucial period for IPC Private Wealth clients, featuring up to four major portfolio events.

These events included: rebalancing to address portfolio drift, aligning portfolios with strategic views, raising funds for client liquidity and cash flow needs, and adjusting investment mandates to align with new risk profiles. 

As Lee notes, recent portfolio drift - especially towards growth-style and U.S. equities over recent quarters, necessitated adjustments to client portfolios to maintain alignment with investment objectives and risk profiles. Subsequently, portfolios were updated to correspond with our Portfolio Management Team’s strategic views, with a slightly overweight position in fixed income due to the asset classes outlook for the year ahead.

Detailed adjustments include decreased international equity exposure, and increased U.S. equity allocation to reflect recent enthusiasm around the introduction of viable AI applications to the marketplace. Additionally, shifts in real estate and small-cap allocations were made to align positions with recent market trends. These adjustments also provided the opportunity to fulfill client liquidity requirements for the remainder of 2024, while facilitating the realignment of investment mandates to correspond with any changes in client investment risk profiles.

...global geopolitical and geoeconomic uncertainties are expected, with a record-breaking year for elections and ongoing economic volatility due to concerns about interest rates and conflicts across the globe.

Looking ahead to the rest of the year, global geopolitical and geoeconomic uncertainties are expected, with a record-breaking year for elections and ongoing economic volatility due to concerns about interest rates and conflicts across the globe. To take advantage of volatility, the IPC Private Wealth Team will continue to look for opportunities to employ tax overlay management, currency hedging, and dollar-cost averaging strategies to help ensure the best possible outcome for our clients. 

In conclusion, Lee notes that clients should remain assured that the IPC Private Wealth Team in collaboration with the Advisor will continue to actively manage portfolios to ensure they remain aligned with their return objectives, time horizons and appetite for risk.