Knowledge Centre
Principles of Wealth Management
The following principles of prudent wealth management form the basis of Provisus' best practices for overseeing a client's wealth:
1
Provisus will ensure that clients clearly articulate purposes, goals, objectives, expectations and risk tolerance with respect to their wealth via the Client Questionnaire.
2
The governance structure together with various governance roles and responsibilities are clearly stated and shall include provision for the communication of those roles and responsibilities.
3
Each investment portfolio will be diversified as completely as required or practical. There will be diversification of asset classes, investment managers, investment style, currencies and geopolitical risks where appropriate.
4
Every portfolio will have an Investment Policy Statement and every manager will have a clearly articulated mandate, both of which are closely monitored.
5
All investment portfolios will be designed taking into account the assets, objectives, needs and character of the clients and should be monitored with those in mind.
6
The primary investment philosophy to be applied across all portfolios is that wealth preservation during turbulent market conditions should be the absolute cornerstone of every portfolio.
- 7 Provisus uses a preset clear, disciplined and objective process for selecting, monitoring and replacing investment managers.
- 8 Any investment manager or investment vehicle must have a strategy and style which can be easily understood. If no one other than the investment manager is able to explain the strategy and style, the wealth manager will not be used. Special scrutiny and limitations will be applied to any investment manager who does not provide complete transparency or whose portfolio is not liquid. Such investments are not prohibited but will be limited in proportion to total portfolio investments.
- 9 Provisus will not accept a client's funds directly. All funds are payable to and deposited directly into the custodian in the name of the investor.
- 10 Custody and accounting for assets and investment management services are each performed independently and separately.
- 11 There shall be full transparency of fees and expenses.
- 12 Self dealing by staff and counterparties is strictly prohibited. Investment portfolios of those parties shall be subject to strict disclosure rules which assure compliance with the prohibition against self dealing.
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18 King St. East Suite 303
Toronto, ON
M5C 1C4