FREQUENTLY ASKED QUESTIONS

Portfolio managers are firms and people who manage investment portfolios on behalf of private clients, foundations, endowments and pensions. Portfolio managers differ from mass-market or retail investment managers because they manage larger amounts of money for fewer clients. This often results in lower management fees.

Portfolio managers are also known as:

• Investment Counsel or Investment Counsellors
• Asset Managers
• Investment Managers
• Wealth Managers
• Advisers

With discretionary account management, investment managers make buy-sell decisions without referring to the account owner for every transaction. The managers must operate within agreed-upon limits and objectives set out in each individual’s Investment Policy Statement. Discretionary management may be suitable for investors who do not have the time, skills or desire to be actively involved in the management of their assets.

• Treegrove is a small, independent boutique portfolio management firm.As a boutique firm with a select roster of direct clients, we place a premium on caring, responsive and efficient service. Unlike automated robo-advisors and corporate mega-firms that chase Assets Under Management (AUM) and treat clients as “just another number”, we believe differently – by incorporating a personal approach and by listening to what it is that you need as opposed to delivering what “we” think that you need.
  We realize that life isn’t always a positive linear experience and we are there to support you during the good and challenging times with strategies to get you ahead. The firm is registered with the Ontario Securities Commission in the category of Portfolio Manager, which means that we have a fiduciary duty to you, first and foremost.We incorporate a high degree of professionalism into our process at all times and we value your trust. With our combined experience at the big 5 firms in Canada, we strive for transparency and growth and understand what is lacking at the larger firms that focus on the bottom line versus a positive client experience.
  We are product agnostic and do not push products nor do we receive commissions All of our business interests are disclosed and our fees are transparent and are fee-based.
  Our focus is on planning and helping you to achieve your financial goals with products that work for you and that get you ahead. In our opinion, this is the way it should be.
  Sometimes, during our financial planning process, we discover a need for a trusted lawyer, accountant or other professional. If you do not have your own advisors, we can make those referrals to our trusted network.
  As an independent firm, we face no conflicts of interest with commission-based fees, unlike many brokers, financial planners, and mutual fund advisors who charge hidden front and back-end commissions, because we operate as fee-based practice. Over the years, most of Treegrove’s clients have been referred to us by other clients or their professional advisors who have confidence in us. Let us earn your trust, by working with you towards the future that you deserve.
  The key difference in dealing with Treegrove is that as a portfolio managerwe have a fiduciary duty to act with care, honesty and good faith – always in the best interest of our clients. Investment decisions therefore must be independent and free of bias

• Treegrove develops a written agreement (usually known as an Investment Policy Statement or IPS) that takes into account your specific investment needs and goals. Your IPS is the basis upon which Treegrove selects an appropriate mix of investments and makes discretionary adjustments to your portfolio.  We will meet with you at least annually to ensure your IPS is up to date and reflects your needs.

• We might be a suitable option for you if you answer “Yes” to many of the following questions:
  a) I have outgrown mass market products or need to establish a family trust,
  b) I prefer to speak directly to the decision-makers directly involved in the day-to-day management of my portfolio,
  c) It gives me peace-of-mind to know that the talent managing my funds are principals in the firm, thus ensuring continuity over the long term,
  d) My present investment outlook  is based on value retention and real rates of return versus chasing growth,
  e) I would prefer a fee for service model instead of paying commissions, service charges and/or being tied to a company’s in-house financial products.

• Investment firms have four primary platforms for generating revenue. They can:
  a) Earn a straight management fee,
  b) Earn commissions on buying and selling,
  c) Create and sell own-branded products,
  d) Distribute the products of other providers for commissions and recurring “trailers.” Fee only firms like Treegrove only generate revenue from managing client portfolios. We do not earn commissions or represent the products of other firms. The benefit to our clients is that we do not have vested interests in particular investment vehicles and select our investment options from the open market.

  Unlike large financial institutions, we are not driven to promote or sell corporate products/services which may not be appropriate to your situation. Should we think that you need advice from a lawyer, accountant or other professional, we can make those referrals.  As an independent firm, we face no conflicts of interest with commission-based fees, unlike many brokers, financial planners, and mutual fund advisors who charge front- and back-end commissions. Over the years, most of Treegove’s clients have been referred to us by other clients or their professional advisors who have confidence in us.

• Our typical client has minimum investable assets of $500,000   Our clients tend to be conservative investors who strive for real rates of return after fees and inflation.

• We may hold the same securities personally that our clients own; however, we do not operate any funds and we have a trade clearing system that ensures Partner trades are never in conflict with client trades.

• Our focus is primarily high-quality Canadian and US equities. We may utilize ETFs to replicate foreign exposure where appropriate. Each portfolio is customized to individual goals and needs. While we do have mandates that go from 100% equity to 100% fixed income, our client’s asset mix is typically between 30-70% equity, with the balance being in fixed income.

• Treegrove engages the custodial services of National Bank Independent Network (NBIN), a division of National Bank of Canada, to safeguard our clients’ assets. NBIN is Canada’s leading provider of custody, trade execution and brokerage solutions to independent Investment Dealers and Portfolio Managers, supporting more than 400 firms across Canada.

  Independent of Treegrove, our clients receive monthly statements for each of their accounts by mail or online, directly from NBIN, ensuring an unbiased valuation of their holdings. Client accounts are protected by the Canadian Investor Protection Fund (CIPF), subject to CIPF conditions and limits.

  Clients also have online access to their accounts on NBIN and also on our in house portfolio management system NDEX.

• Investable assets of $100,000 or more for ETF accounts and $400,000 or more for individual stock ownership accounts.

• Mostly personal taxable and corporate accounts, Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Registered Education Savings Plans (RESPs), Tax-Free Savings Accounts (TFSAs), Registered Disability Savings Plans (RDSPs), trusts and foundations.

Who we are:

Our website address is: https://www.treegrove.ca.

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