A portfolio manager is a professional whose only business is to manage portfolios and advise individual clients.
Clients of a portfolio manager include individuals, companies, trusts and estates, foundations and retirement funds.
A portfolio manager offers continuous ongoing management of a client's investment portfolio.
Such people are professionally trained to select securities for the portfolio which are appropriate for the client's circumstances and requirements.
At the beginning of the client-manager relationship, an investment policy statement is established based on an understanding of the client's overall financial position, tax status and risk tolerance, leading to investment objectives for the portfolio.
From: Portfolio Management Association of Canada
What types of clients do you assist?
C.F.G. Heward Investment Management Ltd. provides discretionary investment management to private investors, family trusts, estates, holding companies, non-resident companies and charitable foundations across Canada and abroad.
Do you invest outside of Canada?
Yes. The firm's global investment strategy provides it with maximum flexibility with regards to geographic allocation. The strategy applies across all client portfolios unless explicitly stipulated otherwise in the investment policy statement.
What different types of mandates do you manage?
The firm manages several types of investment mandates. Investment mandates are governed by their respective IPS, but generally fall into one of the following five mandates:
Global Balanced Mandate: capital preservation and long-term growth.
Global Balanced Growth Mandate: prioritizes long-term growth over capital preservation.
Global Conservative Balanced Mandate: prioritizes capital preservation over long-term growth.
Global Equity Mandate: long-term growth
Global Fixed Income Mandate: Income and capital preservation
For more information, please see Section 3.1- Segregated Account Mandates
How will my portfolio be treated compared to larger accounts?
Fair dealing is a fundamental policy at Heward. The Firm complies with its fiduciary duty to treat all clients with fairness in the allocation of investments.
How often do you report to me? What should I expect?
On a quarterly basis, C.F.G. Heward Investment Management Ltd. provides clients with an investment commentary, performance reports, portfolio appraisals, and a detailed summary of purchases and sales.
A capital gains report is available upon client request.
Custodians, RBC Dexia and TD Waterhouse, send monthly statements listing: all securities held, all purchases and sales, all dividends and interest collected, and any monies paid out.
In addition to providing all necessary annual summaries for year-end accounting, custodians provide 'T5' and 'T3' documentation for income trusts.
RBC Dexia also provides an annual capital gains summary.
How often will I meet with my Portfolio Manager?
Clients are free to meet portfolio managers at a time of their convenience. It is recommended that portfolio managers and clients meet regularly (quarterly, semi-annual or annually) to remain abreast of their investment portfolios.
What is discretionary portfolio management?
Discretionary portfolio management is an investment account arrangement whereby the firm is granted power of attorney to trade securities held in the account. The firm has no authority over the account beyond trading.
Guiding Principles for a Portfolio Manager
A portfolio manager is independent, and has no business affiliation or gainful association that could prejudice decisions.
Compensation for portfolio management services consists exclusively of direct charges to clients for services.
Compensation is never contingent upon the number or value of transactions.
Normally, fees are a percentage of assets managed, but may also be a professional advisory fee.
A portfolio manager does not act as a custodian, and does not hold clients' cash, or other assets.
Portfolio management firms and their principal employees do not, directly or indirectly, engage in activities which might influence their ability to render unbiased investment advice.
Investment research is independent and opinions are arrived at without any prejudice in securities being traded or recommended.