Portfolio managers have a fiduciary duty to act with care, honesty and good faith, always in the best interest of their clients. Investment decisions therefore must be independent and free of bias. This results in a higher level of trust placed on portfolio managers.
Portfolio managers with discretionary authority are required to have the highest level of education and experience in the investment industry.
Personalized Management of Portfolios
Portfolio managers provide ongoing investment management of clients’ investments based on their investment needs and objectives, restrictions, financial circumstances, risk tolerance, time horizon and other relevant factors which are often outlined in an Investment Policy Statement (IPS). Clients typically give discretionary authority to the portfolio manager to make investment decisions without getting prior approval for each transaction (called discretionary management).
Portfolio managers typically charge a fee based on a percentage of the investments they manage. This fee is transparent and can be less than retail management and distribution costs, which are often embedded as a cost of doing business. It’s important to note that clients’ assets must reside at a custodian financial institution for an extra layer of protection and safety and there is usually a small additional fee for this service. Fees are fully transparent on client statements. Fees are not paid by commission based on volume of buying or selling investments and can be lower than typical mutual fund fees.
Investment Policy Statement (IPS) and Investment Management Agreement (IMA)
An individual written agreement will be established to set out how clients will work with a portfolio manager, including ongoing communication, types of investments, reporting, fees, risks and other issues related to clients’ individual circumstances.
Both the firm and the individual who is managing clients’ investments are registered and subject to oversight by provincial securities commissions.
Firms registered as portfolio managers must meet strict financial reporting, capital and insurance requirements to further protect clients’ investments.
Gold Investment Management Ltd., a registered portfolio manager, offers exchange traded fund (“ETF”) model portfolios, equity, fixed income and alternative asset management services to individuals, corporations, pension funds, charitable foundations and trusts. Our guiding principles are integrity, discipline and results. Established in 2007, Gold Investment Management currently serves clients in Alberta, British Columbia, Saskatchewan, Manitoba, Ontario and Quebec. Gold Investment Management also serves clients in the United States where we are licensed as a registered investment adviser with the U.S. Securities and Exchange Commission.