The fdp Perspective Private Portfolio: evolving at your pace ⋆

We recently introduced a brand new investment offer, which we announced to you in our June 2021 edition of Dialogue. This fdp Perspective Private Portfolio marks a real step forward in terms of its flexibility, its customization and above all of its ability to evolve at your personal and professional pace. It’s part of our effort to respond ever more precisely to the needs of architects, whose career and life paths vary according to each architect’s unique reality.

What does this flexibility mean in concrete terms? We will demonstrate this with a few examples. But first a few words about the need to know yourself well as an investor.

My profile, my reactions

By speaking with your advisor to determine or adjust your investor profile, you are laying the foundations for your future decisions. Because what this profile will reveal is not in which pre-established investor category you belong, but rather your understanding of your investment portfolio and, above all, how you react to the market events that can influence it.

Your behaviour in these circumstances is very important because, as every financial advisor knows, emotions play a big role in how investors perceive their investments. According to your project, by accurately assessing your tolerance for risk or for the unexpected, and by recognizing your reactions to market events, you can build an investment portfolio that’s right for you. You will also get a better understanding of the planning that is required to reach your goals.

Not always smooth sailing…

But of course, the road of life can be bumpy at times. At different stages, events can occur which may cause you to deviate from your original plans and which will require more or less rapid adjustments to new circumstances: change in your career path, birth of a first child, health problems… Your investment portfolio should adapt to your reality and help achieve your objectives, so it has to be flexible enough to adjust to your new needs, while continuing to build your savings.

It’s with this in mind that the fdp Perspective Private Portfolio was created, and that’s why we believe it can effectively meet your needs.

Since it comes in 17 different equity and fixed-income weightings, it can be tailored precisely to your investor profile.
If your profile changes over the years, adjustments can be made to the Portfolio, since it essentially involves changing the weighting, not the products. A tax impact is to be expected, but since you’re not exiting one portfolio and creating a very different one, the change doesn’t have the same significance from a tax perspective.
Depending on your interests and your values, you can personalize your investments even more with the addition of one of our optionalities. Adding them to your Portfolio enables you to invest in industries that will shape our societies for decades to come.

NOW LET’S LOOK AT SOME SCENARIOS THAT COULD REQUIRE ADJUSTMENTS.

An ecological advance

Anne loves her profession as an architect. As a partner in an architectural firm, she is living her dream… or almost. At age 52, she still has many plans and one of them is to open an office entirely focused on green buildings and new technologies. The project is taking shape and she would like to make it happen within two years. She will have to recruit staff, but all the key pieces are quickly falling into place.

Obviously, the financial aspect is important. This is not a leap into the void, since she has a good investment portfolio at fdp and since she switched into the Perspective Private Portfolio without hesitation. The weighting of her Portfolio is currently 40% fixed income and 60% equities.

A discussion with her advisor led to a rebalancing of her Perspective Portfolio towards fixed income, considering the significant outlays involved in her project. The initial shift will bring the weighting to 50% fixed income and 50% equities. Ultimately, the Portfolio may be weighted 60% fixed income and 40% equities. The tax impact of these changes should be minimal as they are relatively insignificant and will be made over a period of time.

Anne’s advisor also suggested that she include the Environment optionality in her Perspective Portfolio. This optionality, which is focused on the energy transition, is in keeping with her values and allows her to invest in market developments that are promising in the near future. This is another way to align her investments with her beliefs.

The price of success

Recognition by one’s peers is a milestone in the career of an architect. David is 31 years old and he is a partner in a collective of young architects who share his appetite for novelty and his bold spirit. This orientation has benefited him as he recently won an Innovation Award for one of his projects. He will thus have the chance to collaborate on a large architectural project with renowned architects. This is a great career opportunity and above all, a way to deepen his knowledge and broaden his contacts.

David is an fdp client and already invests in a Perspective Private Portfolio. He is ambitious and currently tolerates risk well. The weighting of his Portfolio is 20% fixed income and 80% equities.

Needless to say, he consulted his advisor to plan his finances during these exciting times. She had stressed to him the importance of reviewing his investor profile in the event of a major life event, so he immediately informed her of these new developments and together, they reviewed his profile and his investment strategy, carefully assessing all aspects. In the end, his profile remained the same and since his participation to this project is paid, David need not adjust the weighting of his Perspective Portfolio.

He can therefore take advantage of a very enriching work experience while his Perspective Portfolio continues to grow.

Always tailored to you

The fdp Perspective Private Portfolio is an investment solution that adapts to your needs. Talk about it with your wealth management advisor and see how this Portfolio can give you the personalization and flexibility you’re looking for. The reason is simple: it was created for you, architect.

The information presented in this article is for informational purposes only and should not be construed as constituting a recommendation to buy or sell securities. In addition, the financial planning and tax strategies mentioned in this article may not apply in all cases. Please consult your wealth management advisor or your tax specialist, accountant or legal advisor.