As a Portfolio Manager, Mounir provides discretionary portfolio management services on a fee-for-service basis. Historically, this type of wealth management was reserved for institutional investors (e.g. pension funds, corporations, foundations) or wealthy families (assets in excess of $1 million). These investors benefited from having their own "in-house" investment manager with whom they worked with on an exclusive basis.
Mounir does work with individuals and corporations who have assets below these amounts. In order to be considered an investor must have realistic expectations, set achievable goals and remain dedicated to the investment strategy as per the Investment Policy Statement.
As with most discretionary accounts, fees are levied as a percentage of the market value of the portfolio. As outlined in the table below, the fee declines as the assets under management increase. There are several advantages to fee-based investment management, which include:
- Portfolio manager is rewarded for superior performance
- Fees are lower than most wrap accounts or mutual funds
- Professional management fees may be tax deductible for non-registered accounts
| Assets | Fees as Percentage Market Value |
|---|---|
| Less than $250,000 | 1.75% |
| $250,000 to $500,000 | 1.50% |
| $500,000 to $1,000,000 | 1.25% |
| $1,000,000 to $1,500,000 | 1.00% |
| Above $1,500,000 | Negotiable |
Investment Management Process
- Evaluate and identify the client's investment objectives and risk tolerance
- Prepare an Investment Policy Statement that outlines:
- client's investment objectives and risk tolerance
- allocation of client's assets across the spectrum of asset classes (e.g. cash equivalents, fixed income and equities)
- other investment constraints (e.g. liquidity, time horizon, tax status, unique circumstances, etc.)
- types of securities (e.g. treasury bills, corporate and government bonds, preferred and common shares, etc.)
- portfolio to be used as a benchmark for return comparison
- Review the Investment Policy Statement with client and make changes if necessary
- Invest the assets as per the target asset mix
- Monitor and rebalance the portfolio on a regular basis; make changes as dictated by the economic outlook
- Review the portfolio on an annual basis
Investment Policy Statement
An Investment Policy Statement is vital to the long-term achievement of your financial goals and objectives. As part of the portfolio management process, Mounir prepares a written Investment Policy Statement for each client, which is reviewed annually.
A written long-term investment policy protects your portfolio from ad hoc revisions of a sound long-term investment strategy. This written statement clarifies the overall investment plan and clearly articulates your investment objectives and constraints, thus providing a benchmark with which to evaluate your portfolio manager. Because objectives and expectations are clarified for all concerned parties, misunderstandings are less likely to arise.
The policy may take many forms, from general asset class targets to highly specific criteria. The written investment policy will help you to maintain a long-term approach when short-term market movements may be distressing and the policy is in doubt. Historically, Investment Policy Statements have been reserved for institutional clients. Due to the many benefits of an Investment Policy Statement, Mounir prepares one for every client.
