Investor Resources

Private clients are individuals and families who have a significant financial portfolio and require expertise and access to investments beyond those available to the mass market. Because of the size of their portfolios, private clients have investment needs similar to those of endowments, foundations and institutions, which is why so many choose to work with a portfolio manager.

Key considerations:

• Investment Portfolio Size
  If you have a sizeable portfolio of several hundred thousand dollars or more, you need specific expertise and access to investments that are not available to investors with smaller portfolios. Also, the size of your portfolio affords a lower fee structure than is available with mass-market or retail funds.
  
  
• Complex Investment Needs
  You may have multi-generational wealth needs that require specific attention, or tax, trust and estate requirements that are beyond the expertise of retail brokers and financial planners. You may own or operate businesses or a professional practice that adds an additional level of complexity to managing your wealth. Portfolio managers work with clients with unique and complex circumstances, so they are well positioned to help or guide you with your wealth management.
  
  
• Direct Relationship
  As a private client, you have a direct relationship with the firm that manages your money. This eliminates third-party distributors and brokers, which often account for layers and fees between you and the professionals investing your money.
  
  
• More Detailed Reporting
  With a larger portfolio, you need to understand your performance, and that often involves understanding the investment strategy behind your performance numbers. Many portfolio managers also manage funds for institutions and, as a result, are diligent about providing investment detail well beyond what is required at the mass-market level.

Portfolio managers are known as Investment Counsel or Investment Counsellors, Asset Managers, Investment Managers, Wealth Managers and Advisers. Here are six things to consider when selecting a portfolio manager.  

• Portfolio Management Firm
  Each firm’s profile is different, with its own history, ownership, size and profile. Firms manage money in different ways and offer an array of products. Some specialize in types of clients. The key to selecting the right firm is to ensure they are registered and they fit your personal circumstances.
  
  
• People
  Portfolio investment management performs two functions: client relations to ascertain needs and managing investments. In large firms, these roles are performed by different professionals. Most portfolio managers hold the coveted Chartered Financial Analyst designation (CFA charter), which is the most respected and recognized investment credential in the world. Portfolio managers provide active management to ensure your best interests are being met.
  
  
• Philosophy & Style
  Portfolio managers use different investment management approaches and styles. Some managers are product specialists, some adopt a certain style such as value, growth or momentum, and some offer a combination of products and styles.
  
  
• Performance
  Performance is often the result of the disciplined application of a manager’s investment philosophy or style. Managers report and communicate performance in a variety of ways – through written reports, and telephone and face-to face meetings. It is important to agree – at the outset – on how you will receive feedback on performance.
  
  
• Portfolio Management & Wealth Services
  Depending on size and specialization, portfolio managers can offer investment products and services related to a range of assets, from fixed income to balanced to equities in both private and public markets. Firms may offer investments from Canada or from other geographic regions around the world.
  
  
• Payment for Services
  Portfolio managers typically charge a management fee based upon the amount of assets managed. Fees vary and may depend on the size of the portfolio. All fees are disclosed fully on client statements. Portfolio manager fees are generally lower than mass-market or retail investments because they manage larger sums on behalf of fewer clients.

Please visit the Ontario Securities Commission’s Investor Resources webpage to gain a clear understanding of all the options available so that you can make an informed choice.

Portfolio Managers are required under securities laws to document and respond to each client complaint, regarding any product or service that is offered by the firm or one of its representatives. In this capacity, portfolio managers must provide recourse to an independent dispute resolution or mediation service at a firm’s expense for specified complaints where the firm’s internal complaint handling process has not produced a timely decision that is satisfactory to the client.

Contact your portfolio manager directly for additional information about the firm’s internal complaint handling process and the timelines to respond to your complaint.

Additional dispute recourses

Ombudsman for Banking Services and Investments (“OBSI”) (except in Québec)

Taking a dispute to OBSI does not restrict your ability to seek a resolution or mediation service of your choosing at your own expense, or to bring an action in court.

Autorité des marchés financiers (AMF)

Registrants may forward a complaint to the AMF. To do so, registrants must inform each complainant, in writing and without delay, if the complainant is dissatisfied with how the complaint is handled or with the outcome. The AMF may act as a mediator if it considers it appropriate to do so and the parties agree.