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How does a separately managed account (i.e. My own stock/bond portfolio with De Luca Veale Investment Counsel Inc.) differ from a mutual fund or pooled account? Why do I need professional portfolio management? Who will be managing my account? What is the investment style of De Luca Veale? Will I be able to speak with my portfolio manager directly? Are you registered with any regulators? I have utilized the services of a stockbroker for many years. Am I able to take advantage of the services provided by an investment counsel/portfolio manager, yet maintain the relationship with my broker in order to buy stocks that I wish to buy and sell on my own? Where will my investment account be held for safekeeping? What is a custodian and why do I need one? How safe are my assets at Penson Financial Services Canada? What happens to the stocks and bonds I already own if I join De Luca Veale? How often will I hear from you? Will I be able to see my account online? What does it mean that you follow a code of ethics? How are you compensated for managing my portfolio? Can I purchase insurance products such as life insurance, critical illness insurance, disability insurance, and annuities from De Luca Veale Investment Counsel Inc? What if I want to leave De Luca Veale? Why have you set up an IC/PM firm and not just stayed with an investment dealer? Also, why don't all advisors go the route of an IC/PM and instead continue to act as salespeople of broker/dealers? How is it better for me the client to be working with an IC/PM firm?
How does a separately managed account (ie. My own stock/bond portfolio) with De Luca Veale differ from a mutual fund or pooled account? A separately managed account is an investment account managed by professionals in which you own the securities not units of a mutual fund. Because of this, separately managed accounts are more transparent than mutual funds or other "pooled" investment vehicles as you can see what companies you are in fact invested in. Separate accounts also allow your portfolio manager to address your personal investment goals more specifically and they allow you to take advantage of certain tax efficiencies that are unavailable when you invest exclusively in a fund. Why do I need professional portfolio management? Very few investors have the experience, time and access to information needed to successfully manage their investments. De Luca Veale can tailor a portfolio for you based on your unique goals, time horizon, income needs, tax considerations and risk tolerance. We also provide ongoing monitoring and management to keep your portfolio on track to meet your goals. Perhaps most importantly we take on the responsibility to look after the day to day decision making so you don't have to. Who will be managing my account? All investment decisions are made by our team of experienced professionals, Mr. Richard De Luca CIM, BComm and Mr. Jonathan Veale CIM, FCSI, CFA. With a combined 20 years of investment management experience both Mr. De Luca and Mr. Veale analyze research from some the best Canadian and Global financial analysts in order to ensure your portfolio is always a diversified mix of their best investment ideas at the best possible value. What is the investment style of De Luca Veale? Our investment style is a blend of value and growth. We invest in companies with solid fundamentals and attractive growth potential at reasonable valuations. We diversify across industry sectors as well as geography. This provides appropriate diversification, lowers your risk and does so without over-diversifying. For balanced portfolios we also utilize high quality fixed income securities to provide current income and reduce portfolio volatility and risk. We may utilize mutual funds or exchange traded funds (ETFs) in areas that require specialized management. This typically involves investments in smaller companies, international companies trading on international exchanges and high yield bonds. Will I be able to speak with my portfolio manager directly? Yes! Unlike many of our competitors who outsource all or most of the investment process to an outside manager or mutual fund, we act both as your advisor and the portfolio manager for most of your securities. In addition, because we personally handle the job of portfolio management, we are better able to tailor your portfolio to fit your unique needs. Are you registered with any regulators? Yes, we are registered as "Investment Counsel/Portfolio Manager" with the British Columbia Securities Commission (BCSC). To learn more about the BCSC go to www.bcsc.bc.ca. I have utilized the services of a stockbroker for many years. Am I able to take advantage of the services provided by De Luca Veale, yet maintain the relationship with my broker in order to buy stocks that I wish to buy and sell on my own? Yes! As the client, the choice is yours. We take pride in our ability to work with all of our clients' key professional advisors including brokers, lawyers, and accountants. Your full service or discount broker will be there to buy those investments you wish to buy and sell on your own, as your account with De Luca Veale is not for this purpose. De Luca Veale's sole focus is on portfolio management and to ensure we are successful at this task we must ensure that all our resources are directed solely towards research and execution of our best ideas and that nothing distracts from this goal. Where will my investment account be held for safekeeping? Your account will be held in your name with a custodian. Our preferred custodian, known as Penson Prime, a division of Penson Financial Services Canada, offers you the key benefits of low trading costs, high interest on cash balances, no RRSP/RRIF administration fees and quality account servicing. It is important to note that custodial services are available from a multitude of other IIROC member firms such as the TD Bank and National Bank. We have chosen Penson Prime as our preferred custodian due to the savings it brings to you our client, and their additional supplemental account protection of up to $10 million. What is a custodian and why do I need one?. A custodian is the financial institution that holds your securities which are being managed by De Luca Veale. Penson provides the safekeeping and does much of the administrative work associated with your account so that De Luca Veale can focus on managing the investments within your portfolio. How safe are my assets at Penson Financial Services Canada? Penson Financial Services Canada (PFSC), is a member of the Investment Industry Regulatory Organization of Canada (IIROC), PFSC is also a member of the Canadian Investor Protection Fund (CIPF) which is an organization that ensures, within defined limits, that your cash and securities are protected. Through CIPF, each customer is provided with protection of $1 million for assets including cash, securities and some additional products. To learn more about visit www.penson.ca. CIPF details are available at www.cipf.ca . What happens to the stocks and bonds I already own if I join De Luca Veale? Upon becoming a client, we will analyze your holdings to determine how consistent they are with your investment goals. While we may continue to hold certain securities based on your explicit instructions or tax considerations, we will replace securities gradually to reposition the portfolio toward the target asset mix which we have established for you. How often will I hear from you? Clients receive quarterly portfolio reports and periodic market analysis via email or mail, in addition to communication by phone and face to face. We expect to have a face-to-face meeting with you at least once a year and are available as frequently as you need us. In addition, monthly statements are mailed to you by your chosen custodian detailing your account holdings and transactions during the month. Will I be able to see my account online? Yes, online account viewing is available via a secure portal on our website. What does it mean that you follow a code of ethics? We take our fiduciary responsibility to our clients very seriously. We follow the CFA Institute code of ethics as part of our commitment to put the interests of our clients first. For details on the CFA code of ethics visit the www.cfainstitute.org. How are you compensated for managing my portfolio? We receive a management fee that is based upon a percentage of your assets under management. We do not receive trading commissions. Because our primary compensation is investment management services, our incentive is to grow and increase your assets as this is how we can increase our business revenue. Conversely, if your asset value were to drop, we would expect a decrease in our fees. Our interests are therefore properly aligned with yours. This differs from transactional based management where brokers are compensated based on trading activity. Additionally, we do not sell mutual funds that would pay us any hidden fees, such as Deferred Sales Charges (DSCs) or loads. Our fees are transparent and fully disclosed so you know what you are paying. Can I purchase insurance products such as life insurance, critical illness insurance, disability insurance, and annuities from De Luca Veale Investment Counsel Inc?. Yes, De Luca Veale offers a full range of Life Insurance products through many of Canada's premier insurance companies. Both Richard De Luca and Jonathan Veale are Life and Accident & Sickness Insurance licensed through the Insurance Council of British Columbia. Upon deciding to have our firm manage your investments you simply review and sign a few documents including transfer forms, and the staff of De Luca Veale will take care of the details. Upon arrival of your account we will meet with you again to determine the best strategy for transitioning your investments. What if I want to leave De Luca Veale? Our Investment Management Agreement with clients provides for termination at anytime, for whatever reason. There are no penalties, termination or deferred charges. You may pay a transfer fee to the custodian to have each of your accounts transferred to your new advisory firm. Investment Counsel/Portfolio Managers are people and organizations that are licensed by provincial securities regulators to manage investment portfolios for a wide variety of organizations such as private clients and corporations. Why don't all advisors go the route of an IC/PM and instead continue to act as salespeople for broker/dealers? To become a salesperson of a broker/dealer, one must only complete a 90 day home-study course known as the Canadian Securities Course.
To become registered as an IC/PM you must have at least five years experience in combination with at least the Certified Investment Manager Course (CIM - 2 years) and the CFA level 1 in addition to meeting the strict criteria of the provincial securities regulators. Upon meeting these personal criteria you must then establish and register your own IC/PM firm and put together a rigorous set of policies and procedures along with financial bonding and the minimum capital requirements as set out by the Securities Commission. Our goal of bringing an IC/PM firm to Northern Vancouver Island was driven by our desire to work directly for our clients and remove the middleman and all the associated bias and additional cost. How is it better for me the client to be working with an IC/PM firm? The most important question of all. Firstly, it is most important to be working with someone you trust, period. However, it is also very important that this person have the best tools and research at their disposal when working on your behalf. This is where the IC/PM license comes in. An IC/PM is not employed by the firm who holds your securities and is therefore free to source research, investments and business management tools that are best of breed and not just what is on his or her firms' product shelf. He or she is also free to source out research from all of the firms that you would consider noteworthy in Canada and your IC/PM has the ability to build these research ideas into the mix of securities that go into your portfolio. All of this is brought to you from a totally unbiased and completely transparent standpoint. Your IC/PM works for you and does not have any hidden agendas to taint or bias their opinions or actions. |
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