Portfolio Management Strategies – Active Versus Passive

Paul Vorstadt works at National Bank Financial, as portfolio manager and vice president. He has served financial clients since 1994, offering a wide range of services to best suit their needs. Paul Vorstadt provides expert portfolio management in order to prepare his customers for the future.

Portfolio management refers to arranging investments in order to reach certain goals. There are a number of different approaches, and each suits some better than others. Passive management is an approach that was popular during the 1990s. These types of funds are the choice of investors who are comfortable with market-level rates of return. Strategic asset allocation is a passive management approach where the portfolio is fixed, and a typical blend of investments might include 10 percent cash, 30 percent bonds, and 60 percent equities.

Active management is where a portfolio manager allocates a client’s assets by way of certain strategies. In tactical asset allocation, the mix can be altered to react to changing financial conditions. This enables an investment professional to manage risk continuously by balancing the client’s investment portfolio.

 

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National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction.

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