Investors can decide to do it themselves – by choosing the right asset mix, building your portfolio of mutual funds, reviewing it regularly and rebalancing it – or they can leave the responsibility to leading international investment managers by selecting one of FirstCaribbean’s portfolio solutions.
CIBC Axiom Portfolios from FirstCaribbean International Bank provide all of the features and benefits of sophisticated portfolio management while simplifying the reporting, management and administration of the portfolio. Plus, Axiom provides investors with access to the accumulated knowledge and expertise of independent managers from around the world.
CIBC Axiom Portfolios have been designed to manage risk and enhance the potential for returns by ensuring portfolios are broadly diversified across multiple levels. Each portfolio is diversified across asset classes, investment styles, geographic regions and market capitalisations. When selecting the most appropriate portfolio, it is important to consider the investment profile, risk tolerance and time horizon for the individual investor.
FirstCaribbean uses a confidential Investor Questionnaire to assess the needs and investment preferences of an investor and matches this profile with one of four types of portfolios, representing the most suitable asset mix.
CIBC Axiom Capital Preservation Portfolio
The CIBC Axiom Capital Preservation Portfolio is suitable for a conservative investor who is strongly averse to risk and seeks capital preservation with some protection against inflation. The portfolio will accept a lower than average return to minimise the risk of principal loss or price volatility. The main objective is to protect principal. While fixed income investments (bonds and money market) represent a significant part of the portfolio, some focus on equity is also sought to provide some protection against the inroads of inflation.
CIBC Axiom Conservative Portfolio
A conservative investor profile is best served by the CIBC Axiom Conservative Portfolio. The Conservative Portfolio accepts a modest principal risk associated with changing interest rate conditions to satisfy yield requirements. The primary objective is to achieve moderately higher returns in the longer term by accepting limited downside fluctuation. The portfolio is invested in fixed income securities for consistent yield and equities for the potential for growth as an offset against inflation.
CIBC Axiom Balanced Portfolio
The needs of investors looking for capital growth over the medium to long term are met by the CIBC Axiom Balanced Portfolio. The Balanced Portfolio assumes some measure of risk to achieve potential growth, despite the balanced nature of the portfolio. The portfolio aims to achieve a total return by investing in a combination of equities and bonds, which provide interest income, dividend growth for inflation protection and capital appreciation for wealth accumulation.
CIBC Axiom Growth Portfolio
For investors seeking above-average capital growth over the long term the CIBC Axiom Growth Portfolio will take more substantial risk to generate above-average returns. Investors into the portfolio may experience a wide variance in results from one year to the next. However, the objective is to achieve above-average capital growth over a long-term time horizon and requires that investors are willing to make a larger than usual commitment to equities.
Unique Benefits of CIBC Axiom Portfolios
CIBC Axiom Portfolios from FirstCaribbean have a number of benefits.
Professional portfolio management: CIBC Axiom Portfolios provide access to the accumulated knowledge and expertise of professional managers from around the world. Investment managers with proven track records are combined in an optimal mix to form high-quality, professionally managed pools from which portfolios are created.
Rigorous due diligence: The investment managers for CIBC Axiom Portfolios are carefully selected and monitored by CIBC Asset Management Inc. and the funds are administered by CIBC Bank and Trust Company (Cayman) Limited. The team adheres to a stringent due diligence process to ensure that proven investment managers for each mandate are selected and that the managers continue to meet their stated investment objectives.
Built-in rebalancing: CIBC Axiom Portfolios are rebalanced on an ongoing basis to prevent overexposure or underexposure to any one asset class. CIBC Axiom Portfolios are designed to maximise potential for return, while staying within an investor’s risk tolerance level.
Multiple levels of diversification: By diversifying at multiple levels, the risks associated with investing in one individual stock, fund, sector, geographic region or management style are reduced.
Flexible pricing: CIBC Axiom Portfolios offer all the features and benefits of sophisticated portfolio management. This includes flexible pricing structures that allow investors to select the class that best meets their particular circumstances.
Retail class units of CIBC Axiom Portfolios, starting with a $5,000 minimum investment, offer competitive management expense ratios (MERs) to all investors. However, for investors or households with more to invest, the Wealth and Institutional class MERs can provide additional value and enhance long-term portfolio growth. The Wealth Class begins with minimum investments of $100,000 and Institutional Class pricing applies to investments of $250,000 or more.
(See Table Above)