Virtue Asset Management portfolio managers develop a risk-reward profile by evaluating the potential risks and returns associated with investments in a portfolio. The goal is to seek an appropriate balance between risk and potential return based on the investor’s objectives, risk tolerance, and time horizon. No investment strategy can guarantee success or prevent loss.
Creating a risk-reward profile is an ongoing and adaptive process. As market conditions and client circumstances change, our portfolio managers may adjust the portfolio to help keep it aligned with its risk and return objectives. Adjustments cannot eliminate market risk or ensure performance.
At Virtue Asset Management our portfolio managers start by understanding the investor’s goals and objectives. These could be long-term growth, income generation, capital preservation, or a combination of these. Clarifying objectives helps guide decisions regarding risk levels and asset allocation, recognizing that strategies involve uncertainty and market risk.
Our portfolio managers evaluate the investor’s risk tolerance and capacity for handling fluctuations in portfolio value. Risk tolerance is influenced by factors such as age, financial situation, investment experience, and personal preferences.
Based on the investment objectives and risk assessment, our portfolio managers recommend a mix of asset classes that may be appropriate for the client’s profile. Asset allocation is an important factor influencing the risk and return characteristics of a portfolio, though it does not guarantee performance or prevent loss.
Diversification is a risk management strategy that involves spreading investments across different assets, sectors, and geographic regions. Diversification is intended to help manage the impact of individual asset volatility on the overall portfolio; however, diversification cannot guarantee profits or protect against market decline.
Virtue Asset Management selects individual investments that are intended to align with the portfolio’s strategy and objectives, recognizing that investment selection involves uncertainty and market risk. The selection process may consider factors such as financial performance, company fundamentals, industry conditions, and valuation, although no selection process can ensure favorable investment outcomes.
Markets are dynamic and asset values fluctuate, leading to changes in the portfolio’s risk-reward profile. Our portfolio managers monitor the portfolio and may periodically rebalance it to help maintain the target asset allocation. Rebalancing does not guarantee improved performance or reduced risk. Rebalancing may involve adjusting positions in assets that have appreciated or declined to help align the portfolio with its target allocation.
Clear communication with clients is important for helping them understand their portfolio’s risk-reward profile and any changes to the investment strategy. Virtue Asset Management provides quarterly updates that include a market review and a summary of portfolio performance.