Investment Management

Investment Management1,2

A Strategic Approach

Strategic thinking focused on your personal goals and objectives drives every decision by our investment management team. Short-term, headline-driven volatility can lead to irrationality. However, long-term investment strategies can ignore valuable signals if the perspective is not far-reaching and insightful enough. A well-reasoned perspective forms the foundation for investment success, and the proper perspective requires experience.

Our Investment Philosophy

Deriving actionable investing insight from the market begins by understanding the three main factors driving financial asset prices: fundamentals, valuation and psychology.

  • Fundamentals refer to the future earnings growth of a company and are dependent upon many factors – both internal (e.g. business strategy and execution) and external (e.g. macroeconomic) to the company’s operating environment.
  • Valuation is a process that attempts to identify whether an asset is overvalued or undervalued relative to its future earning power, past history or other companies in similar businesses.
  • Psychology is the short-term "noise" that tends to create mispricing opportunities when investors overreact to the market-moving news of the day, and is heavily influenced by investor emotion.

Your investment manager should gauge the impact of daily headlines on each of these three factors. A perspective that changes with the headlines may ignore valuation and fundamentals, whereas a perspective that is too distant may ignore the useful context these factors can provide. Understanding any scenario in the context of these three factors can help isolate actionable investment opportunities.

Our Investment Process

Our process begins with in-depth analysis of market sectors and asset classes to understand how different assets are likely to perform. This analysis creates a strategic framework your City National advisor utilizes to translate your goals, risk tolerance and expectation for return into an appropriate long-term asset allocation strategy3, 4.

  • Active Management Sets Us Apart: We may refine your strategy by making shorter-term or "tactical" adjustments based on current market and economic conditions. We actively manage your allocation to exploit market opportunities and control your risk.
  • Rigorous Manager and Security Selection: We select the most appropriate managers and securities to fulfill the allocation strategy. For quality assurance, we follow a disciplined course that uses quantitative and qualitative processes.
  • Customized for You with Tax Sensitivity: Your individual preferences and tax situation provide the final overlay in constructing your optimal, tax-sensitive portfolio5.
  • We stress asset allocation because it drives performance. The ideal mix of investments will accomplish your goals and enhance return, while lowering your risk and guarding against market downturns.

To learn more about how our network of investment talent and ideas can help you achieve your financial goals, please contact us at {{8007737100_client_contact}}.

Investment and Insurance products:
  • Are Not insured by the FDIC or any other federal government agency
  • Are Not deposits of or guaranteed by a Bank or any Bank Affiliate
  • May Lose Value

  1. City National Rochdale, LLC, a wholly-owned subsidiary of City National Bank, provides investment advisory services to City National Bank. Convergent Wealth Advisors is an affiliate of City National Bank also providing investment advisory services to City National Bank.
  2. Brokerage services provided through City National Securities, Inc., (Member FINRA /SIPC) a wholly-owned subsidiary of City National Bank.
  3. City National Bank its affiliates and subsidiaries, as a matter of policy, does not give tax, accounting, regulatory or legal advice. Rules in the areas of law, tax, and accounting are subject to change and open to varying interpretations. You should consult with your other advisors on the tax, accounting and legal implications of actions you may take based on any strategies presented taking into account your own particular circumstances.
  4. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. All investing is subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future performance.
  5. City National Bank, as a matter of policy, does not give tax, accounting, regulatory or legal advice.