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FAQs: Investments 

What is the overall objective of the portfolio?

The overall objective of a client portfolio is unique to each client. In general, the objective is to maximize returns and minimize volatility.

Can I have different asset allocations for different investment goals?

Yes, when you register, you will determine one or more investment goals, each with its own asset allocation, and one or more investment accounts.

Can I adjust my asset allocation once my money is invested?

Yes, your asset allocation will adjust as your risk profile and life circumstances change. Each year we ask you to update your information so we can establish if your current target asset allocation is still appropriate. If circumstances in your life have changed, you should notify us immediately so that we can make the necessary portfolio adjustments to reflect the new risk-and-return profile. 

How does Polaris select the investments held in each portfolio?

Polaris uses investment products from Dimensional Fund Advisors, Vanguard and iShares. We use a number of criteria to select the investments, including holdings, fees, performance relative to its benchmark, volatility, and liquidity.

Are Dimensional Fund Advisor funds domiciled in Canada or the USA?

Polaris Wealth only uses Canadian-listed investment products. However, these products do include (hold) securities from around the world.

Can I invest in individual stocks?

No, except in special circumstances. Speak with your portfolio manager for more detail.

What if I am restricted from owning investment products that Polaris uses?

Although rare, some clients may be restricted from owning certain investment products used by Polaris to construct portfolios. When you open your account we will identify any potential conflicts and will help find a solution. 

Does Polaris consider my outside investments when constructing portfolios?

Yes, all of your outside investments are considered.  

How are Polaris portfolios diversified?

Polaris' approach is that portfolios should be diversified across asset classes as well as globally.  All investment products have been thoroughly vetted and evaluated based on strict criteria such as holdings, fees, performance relative to its benchmark, volatility, and liquidity. 

What is rebalancing and why is it necessary?

Rebalancing involves undertaking a series of transactions to keep a portfolio’s asset allocation in line with a target asset allocation and risk-and-return profile. Over time, a portfolio’s asset allocation will change as the prices of investments in the portfolio change. Asset allocation can also be affected by inflows and outflows of money, including contributions, distributions, interest and dividend payments. If left unchecked, a portfolio’s asset allocation and its associated risk-and-return profile can change drastically and potentially expose the investor to significantly more risk than they intended. 

How are Polaris portfolios rebalanced?

Polaris client portfolios are regularly rebalanced. For one-fund solutions this is done at the fund level by Dimensional Fund Advisors, Vanguard and iShares. For two and multiple fund solutions, portfolios are monitored regularly and rebalanced when out of tolerance. Polaris generally prefers to rebalance using new cash deposits or when a withdrawal is requested. This approach limits the number of trades Polaris has to undertake, thereby saving clients money through lower portfolio management fees. 

How does Polaris reinvest dividends and distributions?

Polaris typically insists on reinvesting dividends and distributions to reduce our internal trading costs. This helps us keep our management fees low. However, you have the option of receiving dividends and distributions in cash if there is a reasonable rationale.

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