Separately Managed Accounts
Across the country, investment management services are delivered on either a bespoke or pooled fund basis. The bespoke model uses separately managed funds (SMA) which align with an investor’s unique needs and objectives. These arrangements offer a higher level of client service, such as in-person meetings with the portfolio manager at least semi-annually, and very detailed reporting packages.
Historically, such accounts had minimum sizes of $2 million or more. With incessant technological improvements, including full utilization of the internet, SEAMARK can now offer this service to any relationship which meets the minimum annual fee level of $5000. Registered and unregistered accounts may be commingled in calculating the fee.
Here is one simple example of how this structure can be beneficial to a business owner who saves for retirement using an RRSP! In the SMA, US assets can be kept apart from Canadian. When funds are needed in retirement to travel to the USA, SEAMARK can transfer funds in US dollars to the client’s US dollar denominated bank account. By avoiding the currency conversion, the client saves several percentage points of value.
SMA’s are described in more detail at https://www.seamark.ca/what-we-do/separately-managed-accounts.html
Improvements in efficiency arising from embracing technological change now enable SEAMARK to offer pooled funds to customers with account sizes of $5,000 or more. Smaller account participants receive a monthly statement delivered to their unique internet portal, and enjoy a fee structure as low as 7 basis points per month (plus HST).
Pooled funds are like the better-known mutual funds, in that the capital of multiple investors is pooled inside a fund, and a daily unit value is determined. SEAMARK initially created a suite of pooled funds in 1996 to participate in the Defined Contribution pension marketplace, principally by offering the funds through a life insurance company, which also held a significant ownership interest in SEAMARK. An investor may purchase units of the fund as an accredited investor, or may enter into an investment management contract with SEAMARK as his/her portfolio manager.
Presently, as an added benefit, several of the SEAMARK pooled funds have historical ‘capital loss carry forwards’, which can be used to eliminate annual distributions of capital gains inherent in pooled funds.
SEAMARK pooled funds are described in more detail at https://www.seamark.ca/what-we-do/pooled-funds.html
SEAMARK has created a novel approach to the management of Group RRSPs, an offering that we believe is superior in the marketplace. The SEAMARK innovation combines efficienct on-boarding with the Fiduciary Duty that SEAMARK regularly assumes on behalf of each of its high net worth and institutional clients. Introducing the role of a fiduciary into the investment affairs of the individual GRRSP member is a huge step forward in the delivery of productive investment outcomes for employees.
Please contact Don Wishart at 902-423-9367 or [email protected] for more information.