{"id":622,"date":"2025-08-18T10:15:59","date_gmt":"2025-08-18T15:15:59","guid":{"rendered":"https:\/\/martinlapoidev.wpenginepowered.com\/comment-un-gestionnaire-de-portefeuille-prend-ses-decisions-dinvestissement\/"},"modified":"2025-09-19T13:15:35","modified_gmt":"2025-09-19T18:15:35","slug":"how-a-portfolio-manager-makes-investment-decisions","status":"publish","type":"post","link":"https:\/\/martinlapointecsf.com\/en-ca\/how-a-portfolio-manager-makes-investment-decisions\/","title":{"rendered":"How a portfolio manager makes investment decisions?"},"content":{"rendered":"<p>Portfolio managers at renowned firms such as iA Global Asset Management or Fidelity play a strategic role in growing investors\u2019 wealth. Their investment decisions are never left to chance, they rely on a combination of rigorous analysis, a well-defined investment philosophy, and disciplined methodology. Their ultimate goal is to generate returns that outperform a benchmark index or a customized blend of indices tailored to the investor\u2019s profile.<\/p>\n<ol>\n<li aria-level=\"2\">\n<h2>Developing a clear investment strategy<\/h2>\n<\/li>\n<\/ol>\n<p>Before selecting a single stock, a portfolio manager works from a precise investment policy. This document sets the parameters: investment horizon, acceptable risk level, target asset classes (stocks, bonds, real estate, etc.), as well as geographic and sector allocation.<\/p>\n<p>Depending on the mandate, the manager may aim to outperform a single index, such as the S&amp;P\/TSX (Canadian market) or the S&amp;P 500 (U.S. market), or a weighted combination of indices based on the investor\u2019s profile. For example, a balanced portfolio might use a benchmark consisting of 60% equities (Canadian, U.S., international) and 40% bonds. This custom benchmark then becomes the target to beat.<\/p>\n<ol start=\"2\">\n<li aria-level=\"2\">\n<h2>Macroeconomic analysis<\/h2>\n<\/li>\n<\/ol>\n<p>Every decision is influenced by the global economic context. Managers examine indicators such as:<\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\">Interest rates and their anticipated direction<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\">Inflation<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\">GDP and sector growth<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\">Central bank monetary policies<\/li>\n<\/ul>\n<p>For instance, a manager at iA Global Asset Management might adjust the weighting between bonds and equities depending on the economic cycle, always with the goal of outperforming the benchmark combination assigned to the mandate.<\/p>\n<p><a href=\"https:\/\/urldefense.com\/v3\/__https:\/kyjr-zcmp.maillist-manage.com\/click\/1e73a1f217d4d830\/1e73a1f217d4c289__;!!C_xIDw!pvw3cDg0pgcympTNlS4UdO-KN91YflTN8-9Joi4x4Jg4Ojl7WM3P2k0dqK4ilRGSh0ZEAv8TUJDj-EDywOZBjsXkyw$\" target=\"_blank\" rel=\"noopener\">https:\/\/urldefense.com\/v3\/__https:\/kyjr-zcmp.maillist-manage.com\/click\/1e73a1f217d4d830\/1e73a1f217d4c289__;!!C_xIDw!pvw3cDg0pgcympTNlS4UdO-KN91YflTN8-9Joi4x4Jg4Ojl7WM3P2k0dqK4ilRGSh0ZEAv8TUJDj-EDywOZBjsXkyw$<\/a><\/p>\n<p>&nbsp;<\/p>\n<ol start=\"3\">\n<li aria-level=\"2\">\n<h2>Fundamental analysis of securities<\/h2>\n<\/li>\n<\/ol>\n<p>Once the macroeconomic framework is defined, the portfolio manager conducts fundamental analysis of companies. This includes examining:<\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"9\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\">Financial statements (revenue, margins, cash flow, debt)<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"9\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\">Business model and competitive position<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"9\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\">Quality of management<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"9\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\">Growth prospects and associated risks<\/li>\n<\/ul>\n<p>At Fidelity, this step is often supported by a team of sector analysts. The manager actively looks for undervalued or misunderstood securities, aiming to generate excess returns relative to the benchmark.<\/p>\n<p>&nbsp;<\/p>\n<ol start=\"4\">\n<li aria-level=\"2\">\n<h2>Portfolio construction<\/h2>\n<\/li>\n<\/ol>\n<p>The manager selects securities according to established criteria, ensuring proper diversification:<\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\">By sector (technology, healthcare, energy, etc.)<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\">By geographic region (Canada, U.S., emerging markets)<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\">By asset type (growth stocks, dividend-paying stocks, bonds)<\/li>\n<\/ul>\n<p>Statistical tools are used to measure portfolio volatility and its correlation with benchmark indices. The goal is to achieve an optimal risk\/return profile while maintaining a real chance to outperform the client\u2019s weighted benchmark.<\/p>\n<p>&nbsp;<\/p>\n<ol start=\"5\">\n<li aria-level=\"2\">\n<h2>Continuous monitoring and adjustments<\/h2>\n<\/li>\n<\/ol>\n<p data-ccp-border-bottom=\"0px none #000000\" data-ccp-padding-bottom=\"0px\" data-ccp-border-between=\"0px none #000000\" data-ccp-padding-between=\"0px\">Active management requires constant monitoring. A security may be sold if its valuation becomes too high, its fundamentals deteriorate, or a better opportunity arises.<\/p>\n<p data-ccp-border-between=\"0px none #000000\" data-ccp-padding-between=\"0px\">At iA Global Asset Management or Fidelity, internal committees regularly review portfolios to ensure disciplined management. Portfolios are also rebalanced based on deviations from target allocations and the composition of the weighted benchmark.<\/p>\n<ol start=\"6\">\n<li aria-level=\"2\">\n<h2>The advisor\u2019s role in evaluating managers<\/h2>\n<\/li>\n<\/ol>\n<p>Even though the portfolio manager selects securities, the financial advisor remains a key player in managing the client\u2019s overall portfolio. Their role is to regularly evaluate the performance of funds and managers entrusted with the client\u2019s assets. This includes reviewing:<\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\">Past performance relative to the benchmark<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\">Consistency of returns across market cycles<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\">Management style (value, growth, dividend, multi-asset, etc.)<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\">Turnover within the management team<\/li>\n<\/ul>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\u25cf\" data-font=\"Cambria\" data-listid=\"11\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\u25cf&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\">Fees and transparency of the decision-making process<\/li>\n<\/ul>\n<p>Based on these observations, the advisor may decide to replace a fund or manager who no longer meets expectations, or reallocate assets into a strategy better suited to the client\u2019s risk profile and objectives.<\/p>\n<h2>Conclusion<\/h2>\n<p>A portfolio manager\u2019s job is to outperform indices, whether simple or weighted according to the client\u2019s profile, using strategies rooted in analysis, discipline, and rigor. Meanwhile, the advisor acts as a watchful guide, monitoring performance, evaluating managers, and adjusting choices as needed to protect and grow the client\u2019s wealth. Together, the manager and advisor form an essential duo for long-term financial success.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Portfolio managers at renowned firms such as iA Global Asset Management or Fidelity play a strategic role in growing investors\u2019 wealth. Their investment decisions are never left to chance, they rely on a combination of rigorous analysis, a well-defined investment philosophy, and disciplined methodology. Their ultimate goal is to generate returns that outperform a benchmark [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":597,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en-ca"],"acf":[],"_links":{"self":[{"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/posts\/622","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/comments?post=622"}],"version-history":[{"count":0,"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/posts\/622\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/media\/597"}],"wp:attachment":[{"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/media?parent=622"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/categories?post=622"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/martinlapointecsf.com\/en-ca\/wp-json\/wp\/v2\/tags?post=622"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}