Frequently Asked Questions
If you have additional questions or wish to meet with us for a review of your current investment portfolio, please contact us.
portfolio managers are firms and people who manage investment portfolios on behalf of private clients, foundations, endowments and pensions. portfolio managers differ from mass-market or retail investment managers because
they manage larger amounts of money for fewer clients. This often results in lower management fees.
portfolio managers are also known as:
- Investment Counsel or Investment Counsellors
- Asset Managers
- Investment Managers
- Wealth Managers
A portfolio manager develops a written agreement (usually known as an Investment Policy Statement or IPS) that takes into account your specific investment needs and goals. Your IPS is the basis upon which your portfolio manager selects an appropriate mix of investments and makes discretionary adjustments to your portfolio. You and your portfolio manager should meet at least annually to ensure your IPS is up to date and reflects your needs.
- 1) Fiduciary Responsibility
portfolio managers have a fiduciary duty to act with care, honesty and good faith, always in the best interest of their clients. Investment decisions therefore must be independent and free of bias. This results in a higher level of trust placed on portfolio managers.
- 2) Professional Qualifications
As fiduciaries, securities regulation requires the highest level of education and experience in the investment industry.
Personalized Management of Your Portfolios – portfolio managers provide ongoing management of your investments based on your objectives and risk tolerance outlined in your IPS. You typically give authority to the portfolio manager to make investment decisions without getting prior approval from you for each transaction (called ‘discretionary management’).
- 3) Fees
portfolio managers charge a percentage of the investments they manage. This fee is transparent and generally much less than retail management and distribution costs, which are often embedded as a cost of doing business. It’s important to note that your money must reside at a custodian financial institution for an extra layer of protection and safety and there is usually a small additional fee for this service. Fees are fully transparent on client statements and typically go down as a percentage of your portfolio as your assets grow. Fees are not paid by commission based on volume of buying or selling investments and are significantly lower than typical mutual fund fees.
- 4) Investment Policy Statement (IPS) or Written Agreement
An individual written agreement will be established to set out how you will work with your portfolio manager, including ongoing communication, types of investments, reporting, fees, risks and other issues related to your own circumstances.
- 5) Registration
Both the firm and the individual who is managing your investments are registered and monitored by provincial securities commissions.
Legal Requirements of Firms
Firms registered as portfolio managers must meet strict financial reporting, capital and insurance requirements to further protect your investments.
Our firm does not prepare overall performance reports. We do, however, provide each client with the performance of his or her individual portfolio.
Bush Associates Ltd. has approximately $200 million under management. Clients number about 100.
Our fees are calculated quarterly on the market value of the investment portfolio at the beginning of each quarter. In general, the fee is calculated at an annualized 1.00% on portfolios up to $2 million and 0.75% of the asset value greater than $2 million.
The securities are held at one of the large bank owned discount brokerage firms. The accounts are in the individual client’s name and Bush Associates Ltd. is given trading authority on the account by the client. This
authority can be cancelled by the client at any time.
We administer the non-registered and registered (RRSP, LIRA, RRIF, LIF, RESP) accounts of individuals as well as those belonging to estates, trusts and investment holding companies.
The client receives monthly statements directly from the discount broker and summary statements prepared by our firm several times a year or as often as the client requests. The account can be viewed online and the client can discuss the portfolio(s) with the portfolio manager as often as the client wishes.
Our firm has been operating since 1968.