KAI Asset Management is a Portfolio Management Firm with whom we co-ordinate to ensure you receive integrated holistic financial solutions. As your financial planner, we will participate in regular discussion with KAI Asset Management to ensure they have a deeper insight into your investment needs and circumstances and ensure your investment portfolios are managed in line with your overall financial plan.
What are the benefits of working with a Portfolio Manager?
1. Regulatory Responsibility
Our Portfolio Managers have a regulatory responsibility to act with care, honesty and good faith in their client’s best interests. They are under the jurisdiction of provincial securities commissions who are responsible for licensing and overseeing of such firms. Portfolio Managers are required to meet certain conditions of registration with include, their implementation of an effective compliance structure and registration of staff who have discretionary authority over client portfolios. These individuals must meet specific educational and proficiency requirements as a condition of their registration.
2. Investment Plan and Portfolio Management
An Investment Policy Statement (IPS) will typically be drafted by the Portfolio Manager in consultation with their client and client’s advisors (e.g. Financial Planners). This document should set out the general guidelines under which the portfolio will be managed and may include operational matters such as reporting the client can expect and periodic investment review meetings with clients.
A discretionary portfolio management fee is typically charged as a percentage of the value of the client’s investment portfolios. These fees are disclosed as in an Investment Management Agreement that clients must execute with the Portfolio Manager. The dollar amount of fees actually charged are typically disclosed in quarterly client statements and in an annual summary of charges and compensation. Though actual fees vary, discretionary portfolio managements fees are typically lower than the management expense ratio incurred by mutual funds.