Transcript: Guide to portfolio construction — navigating a new world of investing

[Soft music playing]

[CIBC Asset Management logo]

[ A circle graph with 9 pieces surrounds the words “Guide to portfolio construction,” which transition to “Navigating a new world of investing.” 

  1. Strategic Asset Allocation
  2. Fixed Income
  3. Equities
  4. Alternatives
  5. Structured Notes
  6. Active vs Passive
  7. Investing Style
  8. Tactical Asset Allocation
  9. Portfolio Rebalancing

[Doug MacDonald

SVP & Global Head, Global Distribution

CIBC Asset Management]

Market and economic uncertainty, along with relatively lower expected returns, are making it harder than in the past for individuals and institutions to reach their objectives. In addition, the number and the complexity of asset classes and investment strategies that we can all invest in is much higher than it was several years ago. 

[A stylized digital screen with various graphs and numbers. An overhead shot of a business man sitting at a large wooden desk filled with papers, charts and a laptop. Another man sitting at a table in his living room. A senior couple sitting at a table in their home, papers spread around them as they crunch numbers on a calculator. A young couple sitting with their financial advisor, looking at something on a laptop. A middle-aged man sitting on the porch in front of his house, looking at something on a tablet.]  

And in light of this, a well-constructed multi-asset portfolio has never been more important to help all of you meet your investment objectives while being prepared for the unexpected. So to help you navigate through the current market conditions, I'm very pleased to announce our new CIBC Asset Management “Guide to Portfolio Construction” content series. And over the coming months, we'll be sharing a number of guides and videos exploring the various components of a well-constructed portfolio.

[The previous circle graph reappears onscreen, this time with the words ”Elements of Portfolio Construction” in the middle. An excerpt of a financial paper, with the heading ”Strategic asset allocation – the foundation of a well-constructed portfolio”]

This starts with a robust strategic asset allocation consistent with your goals and objectives.

[An excerpt of a financial paper. A sub-heading reads, “Explore our six-step strategic asset allocation process:”, below which is part of a graphic consisting of 4 boxes, each containing a number and a description beneath: 

  1. Determine investment objectives and profile
  2. Forecast long-term returns for different asset classes
  3. Model and calculate optimal asset allocation
  4. Select Managers

 A heading, partially visible, reads: “Step 1: Determine investment objectives and” (the rest of the sentence is cut off). Below this is a graphic featuring a horizontal line of 6 coloured circles. Each circle has words in the middle; moving from left to right, they read: “Financial goals,” “Risk tolerance,” “Time horizon,” ”Financial situation,” ”Income needs” and “Liquidity needs.”]

We'll explore the role of various asset classes, including the entire spectrum of equity, fixed income and alternative asset classes. 

[The previous circle graph appears onscreen. It enlarges to fill most of the screen. Pieces of the circle change colour to coincide with Doug speaking them: “Fixed Income,” “Equities,” “Alternatives,” “Tactical Asset Allocation,” “Active vs Passive” and “Portfolio Rebalancing.”]

We'll also explore strategies such as tactical asset allocation, active versus passive investing and the frequency of portfolio rebalancing. We do hope that these materials will inform and inspire you to embrace a purposeful, disciplined investment approach for your portfolio. Stay tuned to learn more, and we look forward to partnering with you on your portfolio construction. 

[We look forward to partnering with you on your portfolio construction]

[The views expressed in this video are the personal views of Doug MacDonald and should not be taken as the views of CIBC Asset Management Inc. This video is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this document should consult with his or her advisor. All opinions and estimates expressed in this video are as of the date of publication unless otherwise indicated, and are subject to change.

®The CIBC Asset Management and the CIBC logo are registered trademarks of Canadian Imperial Bank of Commerce (CIBC), used under license. 

The material and/or its contents may not be reproduced without the express written consent of CIBC Asset Management Inc.]

[CIBC Asset Management logo]

This video was created on 11/19/2020.