Risk-Managed Portfolio | Case study

Portfolio managed by:

Maxim AJ James, Wealth Management

Amelia Beauchamp

Age 50

Amelia has worked hard to build her small business. It’s her top priority and she puts almost all her time into it. With all her business responsibilities, Amelia hasn’t given much thought to her personal finances. As she starts to think about retirement, Amelia is anxious about needing a plan for her personal financial well-being that doesn’t rely on her business success.

Being a small business owner is risky. Abandoning a steady paycheck, using life savings, taking out loans and relying on a positive cashflow to pay bills are some of the reasons that entrepreneurship is not for everyone. Small business owners also face challenges such as changing business models, competitive threats, staff fluctuations and rising costs. Since she has already taken on so much risk to build her business, Amelia has “risk fatigue” and wants comfort in knowing the financial decisions she makes outside of her business are as low-risk and predictable as possible.

Amelia is the expert when it comes to running her business but isn’t deeply knowledgeable about financial investing. She knows she needs to save money, but investing can be complex. Amelia doesn’t know where to start when trying to decide what investment options make the most sense in helping her reach her goals. She feels she needs a financial expert that she trusts to build a portfolio that helps her reach her goals.

Solution recommendation:

Each client has unique needs, goals and attitudes towards risk. For instance, Amelia has a lower tolerance for risk but still wants to grow her investments and generate some income. As she thinks more about her retirement and other personal financial goals, how can she accomplish these with some sense of predictability and comfort?

The Maxim AJ James, Wealth Management / Canada Life Risk-Managed Conservative Income Portfolio can provide Amelia with:

A smoother investment journey. With a higher allocation to fixed income and lower risk equity exposure, the Conservative Income portfolio is designed to help defend against extreme market swings through unique investment strategies aimed at minimizing losses during periods of market volatility.
Growth potential and stable income. Amelia’s risk conscious mindset doesn’t mean that she must sacrifice long term growth potential of her investments. While significantly limiting the impact of market volatility, the conservative income portfolio allows Amelia to still participate in the markets to help grow her capital.
The right expertise. Amelia doesn’t have the time or expertise to buy and sell investments, but she doesn’t need to. With Canada Life Risk Managed Portfolios Amelia can have confidence that an award-winning team of knowledgeable, experienced professionals at Irish Life Investment Managers (ILIM) is taking care of the day-to-day investment details and monitoring and adjusting the portfolio based on market events in order to deliver the benefits of downside protection, modest capital growth and stable income.