“When it comes to stock selection ... what we’re striving for is being correct 52 to 54 percent of the time – and if you can achieve that type of accuracy, then you will have success”
John Soutsos, Med-Wealth Financial of IPC Securities
“We’ve focused on a concentrated version of our portfolio for clients to achieve the highest possible rate of return”
Alexander Soutsos, Med-Wealth Financial of IPC Securities
In Partnership with
Investment strategies for cutting through clutter
Med-Wealth’s John and Alex Soutsos on leveraging concentrated strategies in a market headed for a slowdown
Read on
John Soutsos
Med-Wealth Financial of IPC Securities
Alexander Soutsos
Med-Wealth Financial of IPC Securities
Industry experts
IN A financial services industry that has become increasingly oversaturated, many investors find themselves steering through a sea of managed solutions that promise risk mitigation but often fall short of delivering on performance. Large financial institutions and independent mutual fund providers offer all-in-one solutions designed to spread risk by holding a vast number of securities. However, as observed by John Soutsos, portfolio manager at Med-Wealth Financial of IPC Securities, this approach can be counterproductive.
In conversation with Wealth Professional Canada, both John Soutsos and the next generation of portfolio management, investment advisor Alexander Soutsos, shared their insights into the core principles and strategies that define their approach to wealth management. With over 35 years of experience, John, with a degree in economics from York University, has cultivated a reputation for excellence, particularly through his Med-Wealth Defensive Growth model portfolio. Alexander, who joined the team in 2022, brings fresh perspectives and a commitment to evolving the firm’s strategies to meet the needs of a new generation of investors.
After gaining valuable experience at CI Investments and KPMG, Alexander decided to join Med-Wealth Financial. “What really got me excited was coming over and helping grow my dad’s business. I wanted to focus on something that we had a stake in,” Alexander explained, highlighting the opportunity to blend his expertise with the legacy his father has built.
rate of return. I often compare it to choosing between a cargo plane and a fighter jet to reach your destination. Both will get you there, but the fighter jet will get you there much faster,” Alexander elaborated.
This philosophy underpins their Med-Wealth Defensive Growth model, a strategy that balances growth with protection to give clients the best opportunity to achieve their financial goals. Med-Wealth’s approach challenges longstanding investment norms, particularly in how they address the needs of clients nearing retirement.
Traditionally, the investment industry has followed a rule of thumb: As clients age, their exposure to equities should decrease, typically shifting more assets into bonds to protect capital. The rationale has been that older investors should take fewer risks with their portfolios. However, John believes that this method is fundamentally flawed. “What typically happens in the lifetime of an investor is they begin with a small amount of money, and, over the course of time, they add to that money through savings, and eventually it grows to a large amount. Just when you have critical mass in the size of your investment portfolio, you reduce your rate of return by diluting it through the ownership of bonds,” he explained.
At the heart of Med-Wealth Financial’s strategy is the Med-Wealth Defensive Growth model portfolio. Designed to provide a smoother ride for investors through the market’s inevitable ups and downs, this portfolio combines growth and protective components to mitigate volatility.
“When you look at the number of holdings that you need to eliminate non-systemic risk, that objective is largely achieved after about 20 to 30 securities,” Alexander explained. Beyond this point, adding more securities does little to reduce risk, and instead dilutes performance. Recognizing this, Med-Wealth Financial has taken a more concentrated approach to portfolio management.
“We’ve focused on a more concentrated version of our portfolio to give our clients the best opportunity to achieve their objectives with the highest possible
Instead of adhering to this traditional volatility mitigation strategy, John advocates for a goals-based approach. John’s first client was a 74-year-old woman who needed her portfolio to grow to cover future living expenses. Initially skeptical about long-term investing at her age, she soon realized the wisdom in John’s strategy when she lived to 94 and required significant funds for a luxurious assisted-living facility. “The risk is not dying tomorrow; the risk is living too long,” John reflected, emphasizing the importance of growth in a portfolio to combat inflation and maintain a high standard of living over potentially decades of retirement.
This shift in perspective is particularly relevant today, as inflation has re-emerged as a significant concern. For years,
inflation was a forgotten concept in the investment industry, but recent economic conditions have reminded both investors and advisors of its dangers. Over a 20-, 30-, or even 40-year retirement, the ability to grow assets is crucial, as retirees no longer have employment income to rely on.
Med-Wealth Financial’s commitment to client communication ranges from weekly market commentaries to quarterly webinars. John and Alexander ensure that clients are well-informed and prepared for market changes. The introduction of a podcast, Prescribing Prosperity, further enhances this communication strategy, providing clients with insights into both financial matters and lifestyle topics. “For clients who don’t know me, I think it’s a great way for them to get to know me in a passive setting,” Alexander said, emphasizing the importance of building relationships.
Today’s market requires more than just a solid strategy; it demands adaptability and foresight. “We are in a very
tumultuous time in economic history,” said John. “I've been in the investment business for 38 years, and there’s never been a year when there wasn’t something tumultuous occurring on the geopolitical scene or in the financial markets.”
In today’s unpredictable environment, flexibility and strategic thinking are essential. John likens the process to baseball: “You’re expecting a fastball but instead you get a curve ball, and you’re swinging wildly. When it comes to stock selection, you are never right 100 percent of the time. What we’re striving for is being correct 52 to 54 percent of the time – and if you can achieve that type of accuracy, then you will have success.”
Recent trends, such as the concentration of returns among a few large tech companies, have posed challenges. “What I’ve seen in the last couple of weeks is a rotation away from the tech sector, and now it’s finding its way into the other sectors that have been ignored for the last year and a half,” John observed. This rotation is driven by expectations of falling interest rates, which will benefit US small- and mid-cap companies, which have a domestic focus in the United States.
John finds a lot of the enthusiasm around AI has already been priced into current valuations, making them quite expensive. Knowing when to step back becomes challenging, so asset allocation and stock selection will be critical in the coming six months to a year as money shifts away from the easy gains made in the big-seven stocks.
According to John, we’re also looking at an economy that might be teetering on the brink of a slowdown. The recession call has been strong for the last few years in the US, but it hasn’t materialized yet.
“I believe the central bank has made a mistake by waiting too long to cut rates, just as they waited too long to raise them initially,” John said. “The economy is clearly slowing, though not yet shrinking, and it would be more prudent to cut rates this month rather than wait until September. Unfortunately, there might be political reasons for the delay.
“I expect the market to end the year strongly, especially after the US election. Typically, in an election year, the market hits a rough patch in September and October, but it tends to finish strong from mid-October onwards.”
Looking ahead, John remains optimistic but cautious: “I'm expecting that the market’s going to add some gains, but it’s going to be a bumpy ride between now and the end of the year. I’m very optimistic about 2025, especially if there’s new leadership that provides a more fertile soil for business activity.”
Top 5 behavioural bias risks:
Familiarity bias
IPC Securities Corporation is a full-service, independent security dealer with head offices located in Mississauga, Ontario. The parent company is Canada Life, which in turn is part of the Power Financial group of companies.
Med-Wealth Financial Services is separately run by John Soutsos and his son Alexander under the IPC Securities Corporation umbrella and offers asset management and retirement planning services primarily to medical professionals. Typical clients must have $1 million in order to establish a business relationship with Med-Wealth Financial Services.
Find out more
John Soutsos is one of IPC's most senior professionals. John has been providing professional wealth management services since 1986, and his team serves a select number of high-net-worth families. He graduated from York University in 1985 with a major in economics. John’s primary role is managing his Med-Wealth Defensive Growth model portfolio. Med-Wealth Defensive Growth is a concentrated US stock portfolio designed to enhance overall returns using his Portfolio Boost strategy. John specializes in private wealth management solutions primarily for physicians and other prolific savers within 10 years of retirement, as well as those already retired.
Med-Wealth Financial of IPC Securities
John Soutsos
Alexander Soutsos joined the Med-Wealth Financial Services team in the summer of 2022. Before joining Med-Wealth, he worked as a senior management consultant at KPMG, servicing clients across a variety of industries, including environmental services, retail, and healthcare. Alexander’s past experience also includes time at CI Financial, as well as at boutique investment bank Oak Hill Financial. Alexander’s keen analytical skills are being used to assist John Soutsos, portfolio manager of Med-Wealth Financial Services, in both analyzing prospective client portfolios and expanding the business. He also provides John Soutsos with a succession plan for the future.
Med-Wealth Financial of IPC Securities
Alexander Soutsos
In Partnership with
Investment strategies for cutting through clutter
Med-Wealth’s John and Alex Soutsos on leveraging concentrated strategies in a market headed for a slowdown
Read on
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Stewart Saunders
Heritage Bank
Alexander Soutsos
Med-Wealth Financial of IPC Securities
John Soutsos
Med-Wealth Financial of IPC Securities
Industry experts
John Soutsos is one of IPC's most senior professionals. John has been providing professional wealth management services since 1986, and his team serves a select number of high-net-worth families. He graduated from York University in 1985 with a major in economics. John’s primary role is managing his Med-Wealth Defensive Growth model portfolio. Med-Wealth Defensive Growth is a concentrated US stock portfolio designed to enhance overall returns using his Portfolio Boost strategy. John specializes in private wealth management solutions primarily for physicians and other prolific savers within 10 years of retirement, as well as those already retired.
Med-Wealth Financial of IPC Securities
John Soutsos
Alexander Soutsos joined the Med-Wealth Financial Services team in the summer of 2022. Before joining Med-Wealth, he worked as a senior management consultant at KPMG, servicing clients across a variety of industries, including environmental services, retail, and healthcare. Alexander’s past experience also includes time at CI Financial, as well as at boutique investment bank Oak Hill Financial. Alexander’s keen analytical skills are being used to assist John Soutsos, portfolio manager of Med-Wealth Financial Services, in both analyzing prospective client portfolios and expanding the business. He also provides John Soutsos with a succession plan for the future.
Med-Wealth Financial of IPC Securities
Alexander Soutsos
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Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
In Partnership with
Investment strategies for cutting through clutter
Med-Wealth’s John and Alex Soutsos on leveraging concentrated strategies in a market headed for a slowdown
Read on
Christopher Lee
MFAA head credit adviser, Finsure Finance and Insurance
Stewart Saunders
Heritage Bank
Alexander Soutsos
Med-Wealth Financial of IPC Securities
John Soutsos
Med-Wealth Financial of IPC Securities
Industry experts
Alexander Soutsos joined the Med-Wealth Financial Services team in the summer of 2022. Before joining Med-Wealth, he worked as a senior management consultant at KPMG, servicing clients across a variety of industries, including environmental services, retail, and healthcare. Alexander’s past experience also includes time at CI Financial, as well as at boutique investment bank Oak Hill Financial. Alexander’s keen analytical skills are being used to assist John Soutsos, portfolio manager of Med-Wealth Financial Services, in both analyzing prospective client portfolios and expanding the business. He also provides John Soutsos with a succession plan for the future.
Med-Wealth Financial of IPC Securities
Alexander Soutsos
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Heritage Bank
Stewart Saunders
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
MFAA head credit adviser, Finsure Finance and Insurance
Christopher Lee
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John Soutsos is one of IPC's most senior professionals. John has been providing professional wealth management services since 1986, and his team serves a select number of high-net-worth families. He graduated from York University in 1985 with a major in economics. John’s primary role is managing his Med-Wealth Defensive Growth model portfolio. Med-Wealth Defensive Growth is a concentrated US stock portfolio designed to enhance overall returns using his Portfolio Boost strategy. John specializes in private wealth management solutions primarily for physicians and other prolific savers within 10 years of retirement, as well as those already retired.
Med-Wealth Financial of IPC Securities
John Soutsos
Portfolio boost strategy
Published September 9, 2024
investing only in areas with which you are familiar, such geography (Canada), or companies you recognize
Recency bias
over-emphasizing recent events to explain the near future, rather than placing information into historical context
Endowment bias
investors psychologically value current investments over investments they don’t own
Inertia or status quo bias
faced with new information or a wide variety of options, investors choose to keep things the same, and thus creating opportunity cost
Regret aversion bias
avoiding changes for fear of making a wrong decision
The vast majority of individuals licensed to provide investment advice in Canada exercise limited influence on portfolio composition and performance
Why deal directly with a portfolio manager?
The principal difference between an investment advisor and portfolio manager is the latter’s ability to exercise discretionary authority in making trades rather than seeking approval for each trade
This fact makes adding value from a potential return perspective more plausible with a portfolio manager than with an investment advisor
Bank branch advisors have limited skillsets, training, and knowledge, and recommend only their own bank’s product line
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Contact us
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Copyright © 1996-2024 KM Business Information Canada Ltd.