Investment counsellors provide clients with expert portfolio management and investment advice and are sometimes known as portfolio managers. They are the most highly qualified investment professionals in the industry. Many investment counsellors hold the Chartered Financial Analyst (CFA) designation. The CFA charter is an internationally recognized investment credential that has set the standard for professional integrity, dedication and the advanced skills needed to build a stronger more accountable financial industry. Unlike most financial planners and brokers who collect commissions for sales or transactions, investment counsellors compensation is based on a percentage of client’s assets under management. This has the effect of reducing conflicts of interest in most parts of the investment process.
The Chartered Financial Analyst (CFA) credential has become the most recognized investment designation in the world. Earning a CFA demonstrates a commitment to professional ethics and expertise with the broad range of skills needed for competitive careers in the investment profession. Charters are only available to those individuals that have passed the three exams, joined a local CFA association and pledge to adhere to the CFA Institute Code of ethics and standards of professional conduct on an annual basis.
All client accounts are safeguarded and held in custody with National Bank Correspondent Network (NBCN), a division of National Bank of Canada. Any movements of money or securities in or out of your accounts can only be executed with your written authorization. NBCN delivers monthly client statements by mail directly from their offices, without our intervention, ensuring an unbiased and audited valuation of your holdings. Through the relationship with NBCN our clients assets, within certain limits, are also protected by the Canadian investor protection fund (CIPF) created by the investment industry.
Headsail Wealth Management is proud to be a small independent portfolio management firm regulated by the Ontario Securities Commission. Registration as a discretionary investment manager is difficult to attain in Ontario and is limited to only firms that demonstrate the highest level of education and financial experience. Unlike larger organizations, Headsail is not incentivized to promote or sell corporate products or services which may not be appropriate for your situation. We also face no conflicts of interest with commission based fees such as those earned by advisors that sell mutual funds. In the event that the portfolio manager is unable to manage client accounts, clients will be notified and the third party custodian will be able to facilitate any transition that the client requests.
Segregated investment accounts are unique, individual accounts held in a client’s name with a third party custodian. Headsail provides every client with a segregated investment account; as a result they can receive securities transferred from other institutions without tax implications. It is only with segregated accounts that investors can benefit from certain tax advantages and gain a truly personalize portfolio management service such as with Headsail.
Discretionary portfolio management means that the portfolio manager does not need the client's consent before trading on their account. The investment counsellor manages every account according to what was defined in the investment policy statement, agreed to and signed by the client with the guidance of his or her portfolio manager.
An investment policy statement (IPS) is a document drafted between a portfolio manager and a client that outlines general rules for the portfolio manager. The IPS provides a set of general investment goals and objectives for a client and describes the strategies that the manager should employed to meet these objectives. Specific information on matters such as asset allocation risk tolerance and liquidity requirements would also be included in an IPS.
An investment management agreement (IMA) is a formal arrangement between a registered investment counsellor and an investor stipulating the terms under which the investment counsellor is authorized to act on behalf of the investor to manage the assets listed in the agreement. The agreement establishes the extent to which the counsellor may act in a discretionary capacity to make investment decisions based on a prescribed strategy.
Headsail manages segregated accounts for private clients including personal investment accounts, RSPs, Locked-In RSPs, RRIFs, LLIFs, RESPs and TSFAs. We also manage accounts for corporations and other entities, such as those for professionals in the fields of healthcare, legal and accounting.
100% of the firm’s revenues are from investment management fees, charge directly to client investment accounts. We do not receive any compensation or commissions from any third-party investment product manufacturer, nor is our compensation ever contingent upon the number or value of transactions made in client accounts. This structure ensures that our loyalty is directed exclusively towards our clients.
Headsail thinks that a key method of reducing conflicts and setting proper incentives is when the manager (and direct family members) owns the same equity investments as the clients. For example, any new equity investment made for client accounts must be also purchased by the portfolio manager’s personal account. Headsail’s portfolio manager is obligated to disclose all personal holdings to clients upon request.