Elizabeth Hoyle, 54
Occupation
Business executive
Her portfolio
Equity funds from Sionna Investment Managers, Brandes Investment Partners, Burgundy Asset Management and other investment managers -- plus a 10-year ladder of provincial and corporate bonds, ROI Private Placement Fund, and FMIC Mortgage Fund.
The investor
"It's not my thing to watch stocks," admits Elizabeth Hoyle. She's busy enough running H2 Central Marketing & Communications, a Toronto-based agency. So she relies on a financial adviser and professional portfolio managers.
The importance of being well balanced
But she does know a thing or two about investing. "Having the right balance of assets for your risk tolerance is the best way to weather downturns," she says. "This philosophy is what got me through 2002 and 2008 intact."
"Like Warren Buffett, I plan to retire four years after I'm dead, so I need to have my investments last!"
Her portfolio is allocated 35 to 40 per cent to fixed-income securities, consisting of bonds, private placements, and a mortgage fund. The rest of her portfolio is allocated to equities spread over Canadian, U.S., and global markets.
Bonds smooth the ride
Bonds are not paying much interest these days, she says. "But they sure do the trick for stability during years like 2008 and 2009."
Plus her bonds are arranged in a 10-year ladder, meaning that about one-tenth of them mature each year and are rolled into new bonds. This arrangement lets yields on the bonds rise whenever market interest rates move up.
It's not the fees, but the quality of management
Most of her equity allocation is held through mutual and pooled funds - "all [value]and growth managers." For Ms. Hoyle, "it's not about fees - it's about quality of management."
"Working as a marketing professional and writer who specializes in financial services, I have learned a lot about the nuances of the business … [and] that portfolio management is best left to smart people with resources and expertise, especially in global investing."
Best move
"Rebalancing asset allocation in 2007 and 2008 and crystallizing a bit of profit. I have a nice kitchen now."
Worst move
"I sold some bank stock last year [when the market was correcting] I am not qualified to make decisions like that and never will again."
Advice
"Invest in companies because they make wealth; governments and the index do not. Don't overestimate your investing abilities. Get help."
Special to The Globe and Mail
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