Investment Management

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Investment Management Investment Management Foundation Private Wealth Management 1101 Prince of Wales Dr. Suite 115 Ottawa ON K2C 3W7 Phone 613.228.8810 Fax 613.228.5298 www.foundationpwm.com [email protected] Disclaimer Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing. Mutual funds are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated. Labour Sponsored Investment Funds (“LSIF”) have tax credits that are subject to certain conditions and are generally subject to recapture, if shares are redeemed within eight years. Please note that Mutual Fund Representatives in Alberta are not permitted to sell LSIF. An investor proposing to borrow for the purchase of securities should be aware that a purchase with borrowed monies involves greater risk than a purchase using cash resources only. The extent of that risk is a determination to be made by each purchaser and will vary depending on the circumstances of the purchaser and the securities purchased. Discuss the risks associated with leveraged mutual fund purchased with an investment funds advisor before investing. Purchases are subject to suitability requirements. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same if the value of the securities purchased declines. Investors should educate themselves regarding securities, taxation or exchange control legislation, which may affect them personally. This web site is for general information only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please consult an appropriate professional regarding your particular circumstances. Foundation Private Wealth Management is an investment funds group [and may be licensed for the sale of life insurance]. Foundation Private Wealth Management is registered through separate organizations for each purpose and as such, you may be dealing with more than one entity depending on the products purchased. Foundation Private Wealth Management will provide the name of the entity being represented when insurance business is conducted. The sale of insurance products is not the business of or under the supervision of FundEX Investments Inc. and FundEX will not be liable or responsible for such activities. All non-mutual fund related business conducted by Foundation Private Wealth Management is not in the capacity of an employee or agent of FundEX Investments Inc. Non-mutual fund related business includes, without limitation, advising in or selling any type of insurance product, advising in or selling any type of mortgage service, estate and tax planning or tax return preparation. Accordingly, FundEX is not liable and/or responsible for any non-mutual fund related business conducted by Foundation Private Wealth Management. Such non-mutual fund related business is the responsibility of Foundation Private Wealth Management alone. Table of Contents INVESTMENT PHILOSOPHY ...................................................................................... 2 CLIENT PROFILE .......................................................................................................... 3 CLIENT ENGAGEMENT PROCESS ........................................................................... 4 ASSET ALLOCATION PROCESS ................................................................................ 6 MANAGER SELECTION ............................................................................................... 7 PORTFOLIO CONSTRUCTION PROCESS ............................................................... 9 THRESHOLDS ............................................................................................................... 11 FEES................................................................................................................................. 12 OTHER CORE SERVICES .......................................................................................... 13 BACKGROUNDS OF QUOTED INDIVIDUALS ...................................................... 14 Investment Philosophy At Foundation Private Wealth Management, our primary investment objective is to achieve long term growth. Within our long term growth objective, the preservation and protection of our client’s hard earned wealth is paramount. Our portfolio construction process considers each individual investment decision with respect to how it integrates and delivers measurable value within the overall portfolio. Ultimately, it is this asset allocation process that we believe plays the defining role in achieving these objectives. As a firm, we bias towards a value management style as we believe that superior risk- adjusted returns will be achieved over time through this investment management style. We also believe that active stock selection can further enhance returns and as such, we look to identify and integrate top portfolio managers who have shown a consistent ability to out-perform their relative benchmarks. We typically exclude portfolio managers who have accumulated excessive assets as we do not believe that they are able to consistently outperform their relative benchmarks. Finally, we actively monitor the investment climate from a Canadian perspective to verify that our portfolios remain properly allocated. Our recommendations are continually monitored to confirm they are meeting expectations and maintaining integrity. “An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative.” Benjamin Graham 2 Client Profile Entrepreneurs Entrepreneurs often have a disproportionate amount of their overall wealth invested within their businesses. As such, they are exposed to a much greater overall level of investment risk than traditional investors. Given their increased risk exposure, it is imperative that their investment wealth be protected. We firmly believe that capital preservation should be at the heart of all their investment planning strategies. As entrepreneurs ourselves, we understand and appreciate the importance of protecting wealth. We also recognize that successful retirement planning, including a strategically implemented and successful exit policy, is paramount. Our process will concentrate on the personal, financial, and tax concerns of the entrepreneur. Family dynamics are also discussed as they can play a defining role in overall process. To achieve the very best results, Foundation will endeavor to work closely with the entrepreneur’s team of professionals. This team approach will help set the stage for an excellent client experience and a much higher level of overall client satisfaction. Professionals Recent legislation now allows many professional groups to incorporate. This unique planning structure affords professionals the opportunity to accumulate and defer taxes on earnings, which previously would have been taxed at the highest marginal tax rates. At Foundation, we review all planning opportunities afforded to professionals with the ultimate objective of creating a customized investment portfolio and a long-term financial planning strategy to meet their individual goals and objectives. High Net Worth Individuals Having already achieved financial success, wealth preservation is often the primary investment objective of these accomplished individuals. Risk management and risk mitigation play a central role in each investment decision. As always, careful consideration is given to asset allocation, as we believe it to be the single-most effective means of managing risk. Portfolio returns can be further enhanced by effectively structuring the investments to minimize taxes. Finally, high net worth individuals are often concerned with estate planning issues and may have special interests in charitable gifting. At Foundation, we have considerable experience in these specific areas of planning and are most pleased to offer our expertise. 3 Client Engagement Process Discovery The main objective of the initial client interview is discovery. It is the prospective client’s opportunity to get to know our firm, our philosophies and our methodologies. More importantly, it is our opportunity to begin the listening process that we hold sacred at Foundation. It is our firm belief that a relationship based on listening will lead to a successful relationship as it will allow us to clearly understand the goals and objectives of the prospective client. During this initial meeting we attain an understanding of what the client seeks to achieve from their investment portfolio. We will also collect all relevant documentation and complete a risk tolerance questionnaire. We will subsequently review all documents and questionnaires and then begin the process of constructing a client specific Investment Policy Statement, which will be reviewed and discussed during our second meeting. Investment Policy
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