SELECT MANAGED PORTFOLIOS
Building Wealth is a Process. Not an Event.
We understand the challenges that can come from trying to manage today’s investment risk. With robo-advisors and do-it-yourself solutions, the misallocation of risk is more common. This can challenge your financial freedom. Our goal is to make professional financial services more accessible. Hemisphere’s Select Managed Portfolio service can help you balance risk and reward to build towards your financial goals.
WHAT YOU NEED TO KNOW
This is a more structured service, well suited to clients in the wealth-building stage as well as retirees whose pensions provide core retirement income and therefore have smaller investable portfolios. To keep fees efficient, we generally recommend a starting point of about $250,000 in investable assets, though we are flexible and happy to discuss individual circumstances to ensure the right fit.
For high net worth individuals, we also offer our Private Portfolio Management.
Yes, this a discretionary investment management service. This means that we use our expertise and judgment to make investment decisions, without requiring explicit approval for each transaction.
You will deal directly with the registered Canadian portfolio manager overseeing your assets.
All client accounts are segregated with safe-keeping provided by third-party custodians. Our third-party custodian is currently National Bank.
We charge fees based on a percentage of assets under management using a tiered-structure. Fees are calculated on the portfolio market value as at the last business day of the previous quarter and charged in advance of the current calendar quarter. Fees are billed directly to the investment accounts.
Our fees are fully tax deductible for non-registered accounts. We clearly report our fees each year in dollar amounts.
Our clients benefit from portfolios that reflect their unique needs, while managing investment risk. Hemisphere’s pooled funds form the basis of our approach. We also use individual bonds and preferred shares and may use select exchange-traded funds (ETFs). We are focused on steady, long-term returns through publicly-traded securities.
While other financial institutions may use alternative asset types (private real estate, private debt, etc.), we feel that these are not suitable for many investors. The restrictions on sales, fees and valuations methods are often not well disclosed. This lack of clarity can lead to too much risk and unexpected loss or illiquidity.
Hemisphere has two registered pooled funds that are equity-focused and actively managed in-house. There is one Canadian-focused fund (Canadian Value Fund) and one U.S.-focused fund with select international exposure (U.S. Select Shares Fund). These funds are only available to Hemisphere’s clients. They enable diversification and active management without the high fees of mutual funds or externally-managed funds that large financial institutions may use.
Unlike traditional mutual funds that often carry high fees, our Select Managed Portfolios offer lower-cost access to diversified, professionally managed investments. Clients benefit from true fiduciary-level advice and active management – ensuring their portfolio is overseen with their best interests at the core.
Using the pooled funds as part of our Select Managed Portfolios service offers a number of benefits:
- Lower Fees and Costs – Transactions are done for the pooled fund and not an individual account which decreases overall transaction costs.
- Diversification – Allows for efficient diversification of securities within an account.
- Contribution Flexibility – Growing accounts often have regular contributions. These contributions can be easily invested in the pooled funds without any transaction costs and without having to purchase each individual security.
We prepare quarterly performance reports. We report our performance net of fees and using a Time-Weighted Rate of Return (TWRR) calculation. This is the recommended approach according to the Global Investment Reporting Standards.
Other firms may report performance as gross of fees and/or using a Money-Weighted Rate of Return (MWRR) calculation. These are not as robust of performance indicators. Particularly when fees are not adequately disclosed. The MWRR calculation is sensitive to the timings of any deposits or withdrawals and therefore is not as good of an indicator of an advisor’s performance.
We consider tax as part of building your overall portfolio. Income, dividends, foreign dividends and capital gains all have unique tax considerations. We place securities in the accounts (RRSPs, TFSAs, non-registered, etc) where it makes the most sense to minimize tax impacts.
IS THIS SERVICE RIGHT FOR YOU?
Hemisphere’s Select Managed Portfolios are designed for clients who want professional, fiduciary-level investment management at a lower cost than traditional mutual funds. This service is designed to be most efficient starting at around $250,000 in investable assets. That said, we are flexible and happy to discuss individual circumstances. Many clients who benefit from this service are professionals and families actively building their wealth. We also work with retirees whose pensions largely cover their retirement income, allowing their investments to continue growing for the future.
You benefit from active management, disciplined diversification, and transparent reporting. We deliver our service with a client-first approach and through a structure that makes professional wealth management more accessible.
For high net worth individuals, we also offer our Private Portfolio Management service.
Individuals & Families Building Wealth
You are accumulating assets through savings, pensions, or investment accounts and want professional management without the high costs of mutual funds. Our approach provides fiduciary advice, disciplined investment strategies, and a clear path to long-term growth.
Business Owners & Self-Employed Professionals
Whether investing inside a corporation or managing personal savings, you need accessible professional advice and tax-aware investment strategies. Our service brings the structure and oversight of fiduciary management at a lower cost.
Young Professionals & Early Investors
You are establishing your financial future and want access to the same professional portfolio management typically reserved for high net worth clients. We make fiduciary-level advice and active management accessible as you build your wealth.
Retirees With Pension Income
Your pension provides retirement security, but you also have additional assets that need to be managed efficiently. We offer active portfolio management to complement your pension income, while keeping costs lower than traditional mutual funds.
WHAT YOU CAN EXPECT
1 - ONBOARDING
Getting to Know You
As part of our wealth management process, we conduct a thorough discovery to gain a deep understanding of your financial goals, risk tolerance, time horizon, income and cash flow needs, tax situation, and other key considerations. This comprehensive consultation allows us to build a complete picture of your circumstances and enables seamless coordination with your other professional advisors, such as accountants or legal counsel.
This process culminates in the creation of a formal Investment Policy Statement (IPS), which guides portfolio construction and serves as the foundation for ongoing investment management.
Opening Your Accounts
Hemisphere currently uses National Bank Independent Network (NBIN) as our custodial platform. NBIN is a wholly owned subsidiary of National Bank of Canada — a federally regulated Schedule A bank — and is the largest retail custodian in Canada. NBIN is regulated by the Canadian Investment Regulatory Organization (CIRO), and all client accounts are protected by the Canadian Investor Protection Fund (CIPF), with coverage up to $1,000,000 in the event of insolvency.
Using the information gathered during onboarding, we prepare the necessary documentation to open your custodial account, including transfer forms and other required agreements. While Hemisphere has trading authority over your assets, we do not have direct access to your funds. Transfers of cash or securities in or out of your accounts requires your written authorization.
NBIN handles all trade settlement, safekeeping and recordkeeping for your account. Funding can be accomplished by transferring assets from another financial institution. We work with you to verify and record the original cost base of any transferred securities to ensure proper tax reporting.
Building Your Investment Roadmap
Based on what we learn about you, we create a personalized Investment Policy Statement (IPS). Your IPS is a key outcome of our initial discovery process. It defines your investment strategy based on factors such as your current financial situation, long-term objectives, ability to handle market volatility, income needs, liquidity preferences, and investment time horizon.
The IPS outlines a personalized asset allocation framework, guiding how your investments will be distributed across equities, fixed income, and cash equivalents. It is a dynamic document, reviewed at least annually, to reflect changes in your life or the market environment. Updates may be warranted due to events such as:
Marriage or divorce
Change of address or employment
New financial goals or liquidity needs
Significant personal, professional, or financial developments
Changes in your status as a corporate insider or major shareholder
2 - PORTFOLIO CONSTRUCTION AND MANAGEMENT
Account Transition
We believe in a thoughtful, tax-efficient transition to your new portfolio — not abrupt changes. When we take over management of an existing portfolio, we gradually align it with our investment model. This process typically takes place over several quarters, allowing us to consider:
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Market conditions
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Tax implications
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Redemption fees
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Liquidity constraints
How We Invest
At Hemisphere, our investment strategy is rooted in clarity, discipline, and active management. We make informed decisions based on our analysis of macroeconomic developments, long-term investment themes, and the evolving impact of these forces on specific sectors and industries within the capital markets.
We are focused on steady, long-term returns through publicly traded securities — including common stocks, bonds, and preferred shares. We believe these instruments provide transparency, liquidity, and the ability to manage risk more effectively than complex or illiquid alternatives.
While some other financial institutions incorporate alternative asset types such as private real estate or infrastructure, we view these as unsuitable for many investors. These investments are often accessed through mutual funds or other managed products that can involve unclear valuation methods, high fees, and restrictive sale terms. This lack of transparency can introduce unnecessary risks, including unexpected losses or illiquidity — risks we actively try to mitigate.
Our philosophy emphasizes simplicity and flexibility — investing in what we can understand and clearly explain.
Security Selection And Execution
Security selection is where our investment strategy becomes tangible. Each position in your portfolio is carefully chosen to reflect our focus on high-quality assets with long-term value. We use rigorous analysis and disciplined valuation practices to determine which securities best represent our investment philosophy.
Fixed Income
Our fixed income portfolios are designed with a strong focus on capital preservation and income generation. These holdings play a key role in reducing overall portfolio volatility while providing a dependable income stream.
We primarily invest in:
Government, provincial, and investment-grade corporate bonds
Select high-yield corporate bonds with strong fundamentals and attractive risk-adjusted returns
Preferred shares
Our approach is active but disciplined. We continuously assess interest rate trends, credit spreads, and economic conditions to position portfolios in a way that balances opportunity and risk. Fixed income forms the foundation of many of our clients’ portfolios — providing stability, generating reliable cash flow, and offering downside protection during periods of equity market volatility.
Equities
Hemisphere’s pooled funds form the basis of our equity strategy. Hemisphere has two registered pooled funds that are equity-focused and actively managed in-house. There is one Canadian-focused fund (Canadian Value Fund) and one U.S.-focused fund with select international exposure (U.S. Select Shares Fund). These funds are only available to Hemisphere’s clients. They enable diversification and active management without the high fees of mutual funds or externally-managed funds that large financial institutions may use. We also may use select exchange-traded funds (ETFs).
We focus on the following when selecting equities for our pooled funds:
Strong fundamentals
Sustainable business models
Responsible capital allocation
Proven track records of performance and cash flow generation
We avoid speculative investments and unproven technologies, instead preferring companies that offer stable growth and downside protection. Valuation is central to our equity process — we invest when the price is right, based on our internal analysis and a long-term view. We continuously review our holdings based on evolving fundamentals and market conditions.
Trade Execution
Effective execution is critical to successful investing. We maintain a broad, trusted network of fixed income and equity brokers, which enables us to:
Access a wide array of securities — including smaller or unique issues.
Seek best price and execution when completing trades.
By managing both security selection and trade execution in-house, we maintain full control over the investment process from idea to implementation.
Risk Management
At Hemisphere, risk management is embedded in every investment decision we make. We understand that all investing involves uncertainty — but not all uncertainty is the same. We differentiate between known unknowns — risks we can identify and try to plan for — and unknown unknowns — unexpected events like geopolitical shocks or sudden market dislocations. Our approach is designed to mitigate the impact of both through proactive safeguards and disciplined wealth management strategies.
Each client portfolio is governed by a detailed IPS tailored to individual objectives and risk tolerance. This ensures that all portfolio activity remains grounded in a strategic framework that balances return potential with risk exposure. By focusing on high-quality, publicly traded securities, we are able to respond quickly and effectively to changing market conditions.
For fixed income investments, we actively manage interest rate and credit risk by analyzing the yield curve, monitoring corporate credit spreads, and positioning our fixed income holdings in a way that supports predictable cash flows. By reinvesting proceeds from maturing securities in a disciplined manner, we reduce exposure to timing risks and ensure alignment with targeted duration and risk levels.
On the equity side, we closely monitor each position for changes in company fundamentals, industry dynamics, and broader economic conditions. We use internal valuation models and external research to estimate intrinsic value, which guides our buy and sell decisions. When a security becomes overvalued or no longer aligns with our investment thesis, it may be reduced or sold — helping to avoid potential downside from deteriorating fundamentals or inflated market expectations.
To protect against both known and unknown risks, we apply a consistent set of safeguards across all portfolios:
Position sizing limits help reduce the impact of any single holding.
Valuation discipline ensures we are not overpaying for assets, reducing exposure to downside risk.
Diversification across asset classes, sectors, and issuers helps mitigate the impact of sector-specific or idiosyncratic events.
Liquidity is prioritized to maintain flexibility in responding to market shocks or rapidly changing conditions.
These safeguards are essential for navigating both predictable and unforeseen challenges. By combining rigorous analysis with a disciplined, transparent investment process, we aim to protect capital while pursuing long-term investment returns.
Tax Strategies
At Hemisphere, tax efficiency is a core component of how we build and manage portfolios. We understand that taxes can significantly impact long-term returns, which is why we take a proactive, deliberate approach to minimizing the tax burden across your portfolio.
We manage portfolios at both the overall portfolio level and the account level, always with after-tax outcomes in mind. This includes thoughtful asset location — matching the right types of investments to the right types of accounts while considering the risk levels identified in your IPS.
By integrating tax planning into every stage of the investment process and aligning it with your overall financial goals, our financial advisors help ensure your portfolio is structured to grow efficiently.
Cash Flow Management
At Hemisphere, we understand that timely access to your money is essential — whether you need regular income, a large one-time withdrawal, or emergency access to funds. Our cash flow management approach is designed to be efficient, responsive, and aligned with your financial needs.
When a cash need arises, we:
Review your existing holdings to determine the most tax-efficient and strategically sound way to raise cash.
Maintain sufficient liquidity in your portfolio to meet anticipated and unexpected withdrawals without disrupting your long-term investment strategy.
Fulfill most cash requests within a few business days, ensuring that you receive your funds quickly and with minimal hassle.
To streamline the process, we recommend setting up Electronic Funds Transfer (EFT) between your investment accounts and your bank account. This allows for seamless and secure transfers — so your money is there when you need it.
Whether your cash needs are planned or unexpected, we are here to ensure that your portfolio supports them smoothly.
3 - PORTFOLIO REVIEW
Reporting
On a quarterly basis:
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Portfolio Analysis/Performance Report: Summary of performance history, quarterly and last 12 months total return, annualized asset mix, appraisal of portfolio holdings.
On an annual basis:
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CRM2 Report: Money-Weighted Rate of Return (MWRR) and management fee report in accordance with CRM2 reporting requirements.
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Tax Package for taxable accounts: summary of investment management fees, gains and losses realized during the year, T1135 information.
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You will also receive a statement of account from the custodian on a monthly basis, unless no transactions occurred in the account, in which case the statements will be generated quarterly. Annually, the custodian will provide all applicable tax receipts including T3s, T5s, etc.
Performance Calculation
Hemisphere follows best practice recommendations of the CFA Institute and calculates performance using the Time-Weighted Rate of Return (TWRR) methodology for quarterly reports. A TWRR calculation is considered to be a more accurate evaluation of a manager’s performance since it removes the effects of external cash flows, which are generally client-driven. This also allows for a common basis of comparison across investment managers. All historical rates of return on Hemisphere’s client statements are calculated using the TWRR standard.
ongoing Relationship
During the initial stages of a relationship, we typically meet with clients more frequently to build a strong foundation of trust and understanding. Once the relationship is established, we continue to emphasize the importance of regular check-ins — typically on a quarterly, semi-annual, or annual basis, depending on your preference. These meetings are a key part of our process and include:
Learning more about you. Beyond just numbers, we want to know more about what is happening in your life.
Thoroughly review the current asset mix, portfolio performance and the portfolio holdings.
Review any transactions that occurred during the period.
Discuss ongoing financial market events and our outlook.
Discuss portfolio positioning given our expected outlook.
As the decision-makers behind every investment, we are fully accountable for each holding. We take pride in being able to clearly explain what each company in your portfolio does and why we believe it deserves a place there.
4 - PERFORMANCE
Performance for our two equity pooled funds can be accessed below:
Canadian Value Fund
The Canadian Value Fund invests primarily in high-quality Canadian companies.
Select Shares U.S. Fund
The Select Shares U.S. Fund invests primarily in high quality, larger capitalization companies that are listed on U.S. and foreign exchanges.