Select Managed Portfolios
Our financial advisors in Calgary 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. Hemisphere’s Select Managed Portfolio service can help you better manage investment risk to build towards your financial goals.
WHAT IS THE MINIMUM INVESTMENT?
Most wealth management services have investment minimums that are not suitable for younger clients or clients with pensions and less investable assets. We strive to make discretionary wealth management more accessible.
The Select Managed Portfolio service is for anyone with investable assets between $250,000 and $750,000. For larger accounts, learn more about our Private Portfolio Management.
WHO MANAGES MY ASSETS?
Our Select Managed Portfolios service is a discretionary investment management service. You will deal directly with the registered portfolio manager overseeing your assets. Our portfolio managers hold a fiduciary duty to act in your best interests. There are no relationship managers in our process.
Where are my funds held?
All client accounts are segregated with safe-keeping provided by third-party custodians, ensuring your peace of mind. Our current third-party custodian is National Bank.
How do your fees work?
We charge fees based on a percentage of assets under management using a tiered-structure. Our fees are fully tax deductible for non-registered accounts. We clearly report our fees each year in dollar amounts.
What types of securities do you hold?
Our clients benefit from portfolios that reflect their unique needs, while better 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 proven asset classes.
What are Hemisphere’s pooled funds?
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.
What makes this approach more appealing for smaller accounts?
Using the pooled funds as part of our Select Managed Portfolios service offers a number of benefits compared to other investment companies in Calgary:
– Minimizes 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.
HOW DOES YOUR REPORTING WORK?
Hemisphere prepares quarterly performance reports. Clients also receive monthly custodian reports showing any transactions in the account for that month. 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 and banks 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 may not be a good indicator of an advisor’s performance.
How does the onboarding and ongoing relationship work?
We provide wealth management through a holistic approach. This is an ongoing process to capture any personal changes in your wealth journey.
Through a diligent discovery, we learn about your goals, constraints and risk tolerance. We are focused on better understanding you, what you are trying to achieve and over what timeframe.
Using the details from the discovery process, we develop an Investment Policy Statement (IPS). The IPS forms the basis for your asset mix and the investment decision-making process. We list your risk tolerance, timeframe and any specific restrictions in the IPS. The IPS is reviewed at least annually to ensure we are always working with the latest information in mind.
We evaluate a wide range of securities to build a diversified portfolio that reflects your IPS. We utilize our pooled funds, select ETFs and individual securities. This is a methodical process that typically takes between 6 to 12 months.
During the initial stages of a relationship, we try and meet with our clients more regularly. Select Managed Portfolio clients receive Hemisphere reports on a quarterly basis and generally meet with their portfolio manager on an annual basis. During these meetings, we address any changes to your financial circumstances to ensure your portfolio continues to align with your goals. We also review the portfolio holdings and discuss financial markets.
The Canadian Value Fund is one of Hemisphere’s pooled funds. It invests primarily in high-quality Canadian companies.
The Select Shares U.S. Fund is one of Hemisphere’s pooled funds. It invests primarily in high quality companies that are listed on U.S. and foreign exchanges.