private client managed portfolios

Transcription

1 private client managed portfolios

2 Simplify, preserve and enhance.

3

4 Your wealth is the cumulative result of your hard work, discipline, and astute management. Yet the opportunities it affords may also come with unique responsibilities, challenges and questions. We understand that the decisions concerning your wealth are among the toughest you may ever have to make. For peace of mind, you want to feel secure knowing that all your financial and wealth management goals can be addressed through a solution that is unique to your needs. You need a solution that can simplify, preserve and enhance your wealth. Experience the advantage of the wealth management services of Private Client Managed Portfolios, offered exclusively through Assante Wealth Management.

5 A personalized program tailored to your unique needs and goals the private Client difference The Private Client Managed Portfolios program is a complete wealth management solution that integrates investment management with wealth planning and personalized advice. Our comprehensive approach to managing your financial affairs is tailored to your personal requirements. Private Client Managed Portfolios offers a multidisciplinary approach to managing your complex financial affairs. While most other private client programs focus solely on investment management, we take a different approach. By integrating investment management, wealth planning and personalized attention in a single customized program, we help to simplify, preserve and enhance your wealth.

6 The five pillars of the Private Client Managed Portfolios program personalized investment strategy a detailed plan for your investments tailored to your specific goals strategically engineered portfolios supported by award-winning investment management teams tax efficiency and flexibility tax-effective investing through our Corporate Class structure customizable tax-free cash flow available through our T-Class platform Comprehensive wealth planning advice personalized advice and recommendations for your investment, insurance, tax and wealth transfer strategies specific to your financial goals, objectives and evolving needs ongoing support from our team of professionals to assist you in the unique and complicated wealth planning situations you may face advanced reporting and tax information detailed quarterly statements consolidated for all of your family s accounts comprehensive tax reporting for your personal and corporate accounts principal, income and estate protection combine your investments with the protective features of an insurance contract through the option to include the SunWise Essential Series in your portfolio guaranteed income for life and estate planning benefits.

7 Personalized investment strategy Your Private Client experience begins with the development of a personalized investment strategy. a Clear roadmap for your investments Working with your advisor and your dedicated Investment Counsellor, we will explore your investment objectives and goals, liquidity needs, growth expectations, tolerance for risk, income requirements, investment time horizon, anticipated changes in lifestyle and tax considerations. It details a plan for your customized portfolio, by taking into account your individual circumstances and tolerance for risk, and sets out your asset allocation strategy how your portfolio will be invested. Your custom portfolio is built to offer the highest potential returns for the amount of risk you are willing to take, and is carefully managed to stay within these guidelines. Based on your unique circumstances, we will create a detailed plan known as an Investment Policy Statement.

8

9 A tailored portfolio strategically engineered for you Our portfolio recommendations are supported by a widely recognized team of accredited investment professionals. The Private Client Managed Portfolios program offers you two levels of expertise. CI Investment Consulting is an in-house group of investment professionals who play an active role in the design and management of the Private Client portfolios. The CI Investment Consulting team combines its portfolio construction expertise with comprehensive research and recommendations from State Street Global Advisors, a world leader in asset allocation, to create a portfolio tailored to your personal investment strategy. The team is also responsible for ongoing due diligence and overall program maintenance. Our proprietary program for the selection and monitoring of managers, as well as the team s portfolio-building techniques, incorporate a best practices approach to ensure the managers adhere to their investment mandates. As asset allocation specialists, State Street Global Advisors calculates asset mixes that offer the highest expected return for each level of risk. The key inputs into this process are State Street Global Advisors asset class forecasts. Their forecasts focus on analyzing historical data spanning numerous market environments, and are adjusted for any sustainable changes observed within current market environments by taking into account factors such as interest rates, inflation, and productivity expectations for countries around the world. With US$2.1 trillion* in assets under management, 28 offices worldwide and more than 2,400 employees, State Street Global Advisors is one of the largest investment management companies in the world, operating in more than 100 global markets. * As at June 30, CI Investment Consulting s rigorous process is comparable to those used by Canada s top consulting firms for large institutional investors. The team oversees approximately $14 billion of investments on behalf of clients.

10 Strategic asset allocation and professional money management Your personalized portfolio incorporates many components. Two major components that attribute to its performance are the strategic asset allocation of the portfolio in other words, the mix of asset classes and the portfolio managers who manage them. As an investor, you want to know that the professionals managing your money are among the best. CI Investment Consulting brings together a large selection of affiliated and institutionally recognized portfolio managers, chosen for their leadership in their mandates and for the value they add to your portfolio. Using strategic asset allocation and regular rebalancing to produce stable returns over time, we make sure your portfolio remains true to your goals. It is well diversified No single investment is right for every point in time. A properly diversified portfolio is needed to help capture gains from asset classes that are performing well, while limiting exposure to those that are underperforming. Private Client Managed Portfolios brings you the diversification benefits of strategic asset allocation across 17 mandates within 11 separate asset classes. Your portfolio also includes diversification by country, market capitalization, industry sector and investment style. We monitor the managers to ensure they continue to be the best choice Our ongoing evaluation of the managers against strict criteria ensures that they adhere to their defined investment mandate. The managers must invest according to the investment approach for which they were hired and deliver consistent risk-adjusted performance. Tactical portfolio management Our portfolio managers, through their specialized mandates, have the discretion and opportunities to add value to your portfolio using day-to-day tactical actions through stock selection and sector allocation. We keep you on target We continuously monitor your portfolio to ensure that your asset allocation remains appropriate. If any part of your portfolio deviates from its target allocation by more than 10%, we take appropriate steps to bring it back in line to its target weight. Regular rebalancing helps you achieve better risk-adjusted long-term returns because it automatically leverages the discipline of buying low and selling high by realigning your assets from those that have performed exceptionally well to other areas of your portfolio that have lagged. C C We choose managers for their ability to perform B A D B A D We select portfolio managers based on their investment process, proven value add and fit Target Asset Mix Back in balance into the overall portfolio diversification strategy, C favouring portfolio managers who are willing to B D differentiate themselves from the benchmark. A Varied Market Growth Out of balance Rebalance

11

12 Award-winning money management We use in-house and external managers based on their proven track record in their areas of expertise. Their performance has been recognized through a number of industry awards. Canadian investment awards Signature Global Advisors Manager Awards Eric Bushell, Chief Investment Officer Morningstar Fund Manager of the Decade, 2010 Morningstar Equity Fund Manager of the Year, 2009 Category Awards Canadian Balanced Fund, 2007 and 2009 Dividend Fund, 2001, 2002 and 2009 Global Balanced Fund, 2008, 2010 and 2011 Canadian Equity Fund, 2001 Epoch Investment Partners Category Awards U.S. Equity Fund, 2009 U.S. Equity Pooled Fund, 2005, 2006, 2007, 2008 QV Investors Inc. Category Awards Canadian Balanced Pooled Fund, 2010 Canadian Small/Mid Cap Equity Fund, 2005, 2006 and 2007

13 Tax efficiency and flexibility For investments held outside a registered plan, tax efficiency is a critical issue. Taxes reduce the returns on your portfolio and your investment income. The Private Client Managed Portfolios program offers you tax-effective investment strategies to help minimize your tax bill. tax-wise investing across family accounts With your registered and non-registered assets being taxed differently, we strategically allocate your investments between the accounts across your portfolio to give you the greatest tax efficiency. In addition, your non-registered account fees may be tax deductible, offering you added tax effectiveness within your portfolio. tax-wise investing with Corporate Class All investment mandates in the Private Client Managed Portfolios program are available in our Corporate Class structure, an innovation that gives you the flexibility to make investment decisions on your non-registered assets without being affected by tax concerns. The Corporate Class structure allows you to remain true to your own investment profile, while increasing the long-term after tax growth of your portfolio. Corporate Class offers you three primary benefits 1. Switch or Rebalance You can switch or rebalance among Corporate Class mandates without triggering capital gains or losses. A taxable event only occurs when you redeem from the Corporate Class structure. All of the Private Client pools representing 17 mandates across 11 asset classes are available as Corporate Class shares. Income Canadian Switch between funds Specialty Global

14 2. Defer and Minimize You can defer and minimize tax payments given the low distribution payout policy, and the ability to control the timing of capital gains and capital losses. 3. Receive You can receive tax-efficient capital gains or Canadian dividends from traditional income mandates. By reducing the taxes on your portfolio, our Corporate Class structure enables you to increase after-tax returns, without taking on additional risk. The chart below compares in two ways the value of a $250,000 investment compounding at 6% annual capital appreciation and subject to a marginal tax rate of 45%. $1,500,000 $1,200,000 Corporate Class Investment Pool Trust $1,435,872 After taxes $1,169,051 $900,000 $977,500 $600,000 $300,000 $0 1 year 5 year 10 year 15 year 20 year 25 year 30 year Assumptions An investment inside Corporate Class with annual rebalancing and when tax is paid upon redemption; and outside Corporate Class when rebalanced and taxed annually. The rate return is used only to illustrate the effects of compound growth and is not intended to reflect future values of the funds or return on investment in the Private Client Managed Portfolios. The growth assumptions do not take into consideration management fees or optional charges that would have reduced returns.

15 Tax-wise withdrawals with T-Class Private Client Managed Portfolios gives you the flexibility to generate sustainable, tax-effective cash flow from your non-registered investments without sacrificing the potential for growth or choice of investments through our T-Class platform. with t-class, you Can: Generate 100% tax-free cash flow from your portfolio. T-Class payments are in the form of return of capital, which results in higher after-tax cash flow than with a conventional systematic withdrawal plan. Return of capital distibutions will reduce the adjusted cost base or ACB of an investment. Over time, the ACB may fall to zero, in which case the payments from T-Class will be treated as capital gains which are still taxed at favourable rates. Customize your payments to fit your needs by selecting a percentage or a fixed dollar amount per month. Your after-tax income can vary significantly depending on the nature of the payment. The chart below shows the difference in the after-tax value of $100,000 in cash flow from interest, dividends, capital gains and return of capital. $120,000 $100,000 $90,000 $60,000 $55,000 $45,000 $74,000 $78,000 Net Taxes paid $30,000 $26,000 $22,000 $0 Interest Income Dividend Income Capital Gains Return of Capital *Assumes a marginal tax rate of 45% for interest income, 26% for dividend income and 22% for capital gains.

16

17 Comprehensive wealth planning advice Private Client Managed Portfolios is more than an investment program, it s a complete wealth management solution. we Can help you preserve and enhance your wealth There are many important questions to consider in creating the road map for your future: What do I have today? Will it be enough to meet my needs? What happens if things change? Will my family be protected? How can I maximize what I leave as an inheritance? How does my business impact my financial plan? By asking these simple questions, we can uncover the risks and opportunities that can help you preserve and enhance your wealth. A dedicated wealth planning professional will work with you and your advisor to produce a detailed analysis of your personal financial circumstances and gain an in-depth understanding of your current financial status, lifestyle objectives and plans for your estate. This information is reviewed and analyzed by our team of wealth planning professionals to create your personal Wealth Planning Report. Your Wealth Planning Report is a powerful resource that maps out your life-long wealth plan. It is designed to preserve and enhance your wealth by presenting you with effective tax, estate, and financial strategies tailored to your situation, whether you re retired, still working or own your own business. Our financial analysts, tax accountants, estate lawyers and insurance specialists will work with you, your advisor and your lawyer or accountant to implement the recommended strategies, maintaining a cohesive and integrated approach for your personal wealth plan. we Can help you tackle the CompliCations that life Can bring Your Private Client experience is ongoing. In addition to creating your personal Wealth Planning Report, our team of experts are available to help guide you and address your evolving needs as your life and financial situations change.

18 Advanced reporting and tax information Regular reporting and communication are an important ongoing part of managing your wealth. tracking your progress Every quarter, you will receive an all-inclusive report on your portfolio, showing the value of your holdings, your personal rate of return, a summary of all of your account activities, as well as details of your current holdings. To complement our integrated approach to managing your wealth, we can also create tailored tax packages, including select statements that may be sent directly to your accountant or lawyer, so that all of your professional advisors have a bigpicture view of your progress. tax preparation made simple Detailed tax packages, including information on your taxable income, capital gains/capital losses, and any tax-deductible fees charged to the account are provided on a calendar year basis. Your tax package can also be customized to the fiscal year of your corporation or trust, as needed. For your convenience, you can access your online account information to obtain copies of your statements or tax packages at any time.

19 Principal, income and estate protection guaranteed solutions for pre-retirement, retirement and estate planning As you move closer to retirement, your primary investment objectives are shifting from accumulation to wealth preservation, generating a reliable income and estate planning. SunWise Essential Series, available as an option in your Private Client portfolio, can take you through your savings and wealth accumulation into retirement. The program offers a range of diversified tax-efficient portfolios that will match your risk profile with guarantees that provide: guaranteed income for life for you and your spouse to ensure you do not outlive your savings protection for your savings as your wealth grows growth for your guaranteed retirement income to combat inflation preservation of the value of your estate for your loved ones. The program is designed to mitigate market risk and protect retirement savings during the critical years before retirement while continuing to allow you access to your savings at any time.

20

21 A Private Client experience you can trust With Private Client Managed Portfolios, you can feel secure knowing that your wealth is handled with the utmost care and security. rbc dexia investor services trust To help safeguard your investments, we use the independent professional services of RBC Dexia Investor Services Trust. As our custodian for the Private Client Managed Portfolios program, RBC Dexia segregates client assets from its own, including our investment pools*, protecting your investments in the unlikely event of bankruptcy. These assets are protected under Canadian law and would not be available to creditors of RBC Dexia. RBC Dexia is regulated by a number of federal and provincial regulatory bodies, including the Office of the Superintendent of Financial Institutions, and additional supervisory agencies in the jurisdictions in which we conduct business. RBC Dexia is audited on a regular basis, to ensure that the standards of these government authorities and major international audit firms are upheld. * Certain account types such as RESP and TFSA accounts, may not be opened directly through RBC Dexia Investor Services Trust ( RBC Dexia ) and may instead be opened at CI Investments Inc. However, RBC Dexia continues to be the custodian of the investment pools you hold in these account types and benefits from the same protections as your assets held directly in your RBC Dexia account(s).

22 Backed by the strength of CI Financial The Private Client Managed Portfolios program is managed by United Financial, a division of CI Private Counsel LP, and offered exclusively through the advisors of Assante Capital Management Ltd. and Assante Financial Management Ltd. CI Private Counsel LP is a wholly owned subsidiary of CI Financial Corp., one of the largest and most respected financial services firms in Canada, with approximately $73 billion in assets under management and $96 billion in total assets*. Since its founding over 40 years ago, CI Financial has grown into one of the top three firms in its industry, offering a broad range of investment products and services, including an industry- leading selection of investment funds. *As at February 29, 2012 CI Financial

23 For more information about Private Client Managed Portfolios, please visit or speak to an Assante Wealth Management advisor. Private Client Managed Portfolios services are provided by United Financial, a division of CI Private Counsel LP ( United Financial ). United Financial is a registered adviser under applicable securities legislation. This document has been prepared for use by United Financial and is intended solely for information purposes. It is not a sales prospectus, nor should it be construed as an offer or an invitation to take part in an offer. Private Client Managed Portfolios are available exclusively through Assante Capital Management Ltd. Member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada and Assante Financial Management Ltd. Commissions, trailing commissions, management fees and expenses may all be associated with investments in mutual funds and the use of other services. Mutual funds used in the portfolios are not guaranteed, their values change frequently and past performance may not be repeated. Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies, is the sole issuer of the individual variable annuity contract providing for investment in SunWise Essential Series segregated funds. A description of the key features of the applicable individual variable annuity contract is contained in the information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decreased in value. CI Investments and CI Invesments design are registered trademarks of CI Investments Inc. SunWise is a registered traemark of Sun LIfe Assurance Company of Cananda. United Financial and/or United Financial and design are trademarks of CI Investments Inc _E (03/12)

24 Simplify, preserve and enhance.

25