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 pharmacists, whose career and life paths vary according to each pharmacist’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 informed entrepreneur

Owner of a pharmacy under one banner for a dozen years, Sebastian is seriously considering buying a second one in the next year. At 48, he is a conscientious entrepreneur who does his homework before embarking on a project. He is managing his first pharmacy well and wants to broaden his horizons.

Sebastian has been an fdp client for only five years, but he immediately felt at ease: his advisor speaks his language, he understands his ambitions and, above all, Sebastian doesn’t have to explain the complexities of his profession to him because he already knows them. They discussed his plan to buy a second pharmacy and the steps to be taken. His advisor suggested that he gradually change the weighting of his Perspective Portfolio until the time of purchase.

Currently, the weighting of Sebastian’s Perspective Portfolio is 20% fixed income and 80% equities. Considering the large sums involved in his acquisition project, Sebastian’s Perspective Portfolio will be temporarily adjusted, with the fixed income/equity weighting going to:

25%/75% initially;
and then to 40%/60%;
and finally to 60%/40%, just before the transaction.

This gradual rebalancing will minimize the tax impact of the asset reallocation and free up the required amounts at the right time, at a lower cost for the buyer. Another important aspect: Sebastian remains invested in equities. If there is ever a delay in the process, the situation will not affect his portfolio in terms of potential return.

Once the transaction is completed, Sebastian and his advisor will be able to analyze his new financial situation and readjust the weighting of his Perspective Portfolio, according to his needs.

Continuing a family tradition

Henry has been a pharmacist for forty years and a client of fdp for twenty years. He set up his own business in Gatineau and is well established in his community. At age 67, he is starting to think seriously about retirement. His daughter Emily, 29, is also a pharmacist in the region, but currently works in a health establishment. She likes this environment, but the possibility of taking over the family pharmacy is a great career opportunity for her.

Emily has been an fdp client for seven years. She opted for the fdp Perspective Private Portfolio because of its flexibility: at the start of her career, this was a real asset for her. With a weighting of 25% fixed income and 75% equities, Emily wants to build her savings quickly, so that she can bring her plans to fruition. The timing of her father’s offer couldn’t be better.

As Henry and Emily are currently going through major career changes, they contacted their respective advisors, since such situations require a review of their investor profile. After discussing things, they came to an agreement on how to proceed with the transaction, which will be finalized over the next two years.

The weighting of Emily’s Perspective Portfolio will be gradually changed to allow her to withdraw the necessary amounts. Once the sale is finalized, her Portfolio will have to be reviewed to reflect her new situation.
As for Henry, his investment portfolio will increase significantly, but gradually. A meeting with his advisor will be essential to review his investor profile as well as his retirement projection in view of the changes he will experience over the next few years, and to adjust the weighting of his Perspective Portfolio accordingly.

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, pharmacist.

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.