Frequently Asked Questions (FAQs)
A Portfolio Manager is a specialized investment professional who provides continuous discretionary management of a client’s investment portfolio. Portfolio Managers must be registered with the respective securities commission in the provinces where clients reside. To be qualified as a Portfolio Manager, extensive academic and practical investment experience is required.
A Portfolio Manager will construct and manage a suitable investment portfolio on an ongoing basis after understanding a client’s investment objectives, personal circumstances and risk tolerance. Reviews between the client and the Portfolio Manager are done regularly to reassess personal investment objectives and circumstances as they change.
The Chartered Financial Analyst (CFA) designation is the most widely known and respected investment credential in the world and is administered and granted by the CFA Institute, a global association of investment professionals that traces its lineage back to the establishment of the Financial Analysts Federation (FAF) in 1947.
To be granted the CFA designation, one must master a graduate-level curriculum, successfully pass three 6 hour exams, have a minimum of 4 years of investment work experience and adhere to a code of ethics which holds at its core integrity, competence and respect.
Antares charges an investment counselling fee for the service we provide. This fee is based on the size of the portfolio we are managing. We are not compensated for trading activity, buying or selling levels, nor do we have sales quotas that must be met. Further, we are not paid sales commissions, nor do we receive rebates or kickbacks on any investment that is purchased in our clients’ accounts.
We have specifically designed our compensation structure so that the only way we can increase our revenue is to increase the size of your portfolio. We believe that is true accountability.
While mutual funds are a great place to start out investing, they are a poor place to end up. As your investments grow, mutual funds become less and less efficient. The high fees and the possibility of being forced to pay other people’s taxes are significant detriments to fund investing. Also, with mutual funds and segregated funds, you will not have the opportunity to discuss where your money is invested with the person who makes the actual day to day investing decisions. This can cost you dearly at tax time, and in the long term growth of your investments.
Simply put, we believe there are inconsistencies in the mutual fund and segregated fund structures which can limit transparency and accountability.
Individual stocks that are well researched can be much less risky than most mutual funds. A portfolio manager with several hundred stocks to follow may be limited from doing in depth research on each company. Less rigorous research means that less than stellar stocks may also be included in the fund. This increases the downside risk, and can limit the overall returns.
We only invest in companies after careful research. Companies that do not meet our quality screens are simply not included. The result is a portfolio of 15 to 25 high quality and well researched stocks that provide proper diversification. We believe that this approach is likely to provide higher returns and less risk than the market itself.
A tailored portfolio is the only way you can influence when your taxes are paid and how much you pay. Controlling your tax situation helps your portfolio grow by reducing the drag high taxes can have on your portfolio. Extra taxes greatly reduce the long term growth of your portfolio. Your own personal tailored portfolio provides the best opportunity to manage your own tax situation.
Also, Investment Counseling fees applicable to our SMA service may qualify as a legitimate investment expense by Revenue Canada and may be used as a deduction on your tax return; we recommend you consult a tax professional for more detail.
Fees are one of the few things that every investor can control in advance. High fees can keep your portfolio stuck in neutral and limit any gains. Any money that comes out of your portfolio not only reduces the amount of money you have in the short term, the year over year effect of higher fees can reduce the amount in your portfolio over time. By limiting the fees you pay, your portfolio will grow at a faster rate.
If these fees are also deducted on your tax return it reduces your net cost of investing even further.
If you do not have the time, the knowledge, or the inclination to properly research each investment option, investing can be hazardous to your wealth. With the number of investing options increasing each year, it is getting harder and harder to separate those of high quality from those that have the potential to adversely affect your portfolio.
If you are investing through mutual funds, segregated funds or wrap accounts, you are already paying someone to manage your investments. Unfortunately, you will likely never meet the person making the day-to-day investment decisions. Meeting with your own personal Portfolio Manager is the most logical step if you want someone to manage your portfolio specifically for you.
Assisting in your goal of financial freedom, getting your portfolio on track, and helping you reduce your taxes is as easy as a phone call. Call us today to arrange a meeting and let us help you take control of your future.