Jan 04 2012

Fee-Based Account Types

Fee-Based Account Types

For individual accounts with invest-able assets greater than $35,000, we have strategically partnered with Provisus Wealth Management Limited.  They managed the portfolios and we at Advantage Wealth Planning do the financial planning to support these investment solutions.

Provisus Wealth Management Limited offer clients a customized solution utilizing stock and bonds, actively managed ETF portfolios, institutional mandates and corporate class pooled funds. Provisus is a registered Portfolio Manager whose unbiased team structure investment solutions geared towards each client’s specific current and future risk/return needs.

Some of Provisus’ services include:

Separately Managed Accounts (SMA)

Provisus’ core service is constructing and managing investment portfolios customized to each client’s unique needs. Each stock, bond and exchange traded fund (ETF) is held by an independent custodian in a CIPF protected account in the client’s own name. Provisus works with a dozen third party money managers to develop and execute tax efficient investment portfolios.  Provisus’ team of portfolio managers get an understanding of each client’s constraints and goals through a questionnaire and construct a unique portfolio to meet the client’s current and future needs. Benefits include the impartiality of a multi-manager approach; potential tax deductible fees in non-registered accounts; tax loss selling opportunities; an all inclusive fee structure; tailor made portfolios specifically designed for each client; and professional money management usually only available to High Net Worth clients. Clients will appreciate this opportunity to access a customized portfolio managed by a professional portfolio manager.

Actively Managed ETF Portfolios

Provisus offers ETF portfolios with professionally managed tactical asset allocation and sector diversification for an all inclusive fee. ETF portfolios are extremely liquid and offer similar tax advantages to portfolios of stocks and bonds.  By being able to access a variety of capital markets and offer diversification with fewer security holdings (since ETFs mimic the underlying stock market), clients with smaller pocketbooks can access customized and managed tax efficient portfolios that are designed to perform well while protecting assets against downside risk. Four ETF portfolios have been designed to enhance performance, diversification and minimize the downside.

Click here for a short video about the Provisus Actively Managed ETF Portfolios.

Corporate Class Pooled Funds

Corporate class pooled funds are a selection of funds designed to offer tax efficient returns and cash flows. When used in combination with other managed account solutions clients benefit from holistic portfolio and tax management. Corporate class pooled fund benefits include withdrawals that can be deemed as return of capital, dividends or capital gains. As well capital gains can be deferred and portfolio asset class adjustments made without tax ramifications. Corporate class pooled funds can benefit everyone but especially seniors who don’t want to trigger OAS claw backs, trust accounts for minors, charitable clients and income seekers who require a regular stream of cash flow in the form of capital returns.

Institutional Equity Portfolios

Institutional Equity portfolios are stock portfolios designed for growth and stability. These portfolios are for clients that want a tax efficient approach for attaining increased growth and downside protection. The portfolio managers use an active indexation philosophy for strict risk control and a momentum based approach involving a bottom up stock selection process to diversify the portfolio across all economic sectors. There are three portfolios available: the first, invests in the Canadian market – with the benchmark being the S&P/TSX; the second, in the U.S. market – with the benchmark being the S&P 500; and the last in International stocks – with the benchmark being MSCI EAFE. The benefit to the investor is the opportunity for enhanced performance plus lower fees. In conjunction with lower fees there is a performance fee to the manager for out-performance achieved relative to the benchmark.


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