Plot Twist: Your Bond Portfolio May Be Riskier Than You Think

Government bonds are often referred to as risk-free or safe-haven assets, and, in the right context, this is a correct label as they are low volatility investments that represent money lent to a sovereign nation with almost no risk of default. However, in the first half of 2022, a diversified portfolio of global government bonds returned -13.3% in CAD terms. So, how do we reconcile an outcome like this with the near-risk-free or safe-haven aspect of the asset class?

Rising From the Ashes

In early 2020, very few people understood the gravity of the situation occurring in China and the devastating impact that the global pandemic would have. This new disease, and the subsequent efforts to contain it, impacted the entire world. It has changed the way we work, changed the way we interacted, and changed the way many of us thought about disease and healthcare.

Rewiring Your Amygdala: The Practical Application of Trend in an Investment Portfolio

When an individual contemplates whether they want to make an investment, generally the first thoughts revolve around return expectations. If I am willing to invest in a company, either through debt or equity, what is my expected return, and is the return enough for me to feel comfortable with the risk of supplying capital to that company?

One Size Doesn’t Fit All: Assessing Suitability in the Context of Uncertainty


This installment in our volatility series will aim to provide a framework that helps to quantify an investor’s ability and willingness to take risk based on constraints and the importance of reaching wealth targets. Additionally, I will finally add varying returns into the analysis to illustrate the impact of the risk and return trade-off. Through simple examples and simulations, I will show that understanding an investor’s total financial picture and applying a probabilistic framework for risk management can help achieve desired outcomes in the face of uncertainty.

The Benefits of Preparing for the Unknown

While many investors may define success for their investment portfolio from a return-centric perspective, arguably the more important factor to focus on is risk mitigation. Once you’ve defined a way to quantify the utility function inherent in a risk-centric framework, then return expectations can follow. Otherwise, the strategy is at risk of being abandoned when…

Against the Gods: The Remarkable Story of Risk

Viewpoint Investment Partners Managing Partner, Scott Smith, has recently finished the book Against the Gods: The Remarkable Story of Risk by Peter Bernstein. For those interested in the historical underpinnings of probability and the measurement of risk, this book is a captivating read. Traversing from quantifying the probability of certain numbers appearing in a dice…