Transcend^™

Provisus Wealth Management prepares a customized Investment Policy Statement (IPS) for each investor. Using a proprietary asset allocation system in conjunction with decades of portfolio manager expertise we create optimized portfolios that are unique to each investor’s particular circumstances. The IPS construction process also takes into account the following:

Diversification By Asset Class

Provisus Wealth Management considers those investment managers who are specialists in their fields, focusing on a specific asset class or geographic region. As a result of this process, investors receive a portfolio that is “best of breed”. To match this diversity of specialization would traditionally have required building a complex portfolio using several different investment companies and investment managers.

Diversification By Style

Each investment manager has its own unique management style. Some of the most common styles include Value, Momentum, Growth at a Reasonable Price (GARP) and Growth investing. Value investing seeks out undervalued stocks in the marketplace. Growth investing focuses on companies with profits that are growing at an above average rate. GARP investing is a mixture of Growth and Value investment styles where the potential for growth often justifies a higher priced stock. Momentum investing utilizes a proprietary algorithm to calculate the optimum point of a stock price inflection which determines the ideal point to shift the investment stance.

Each asset class, region or style has its own risks and advantages and each works best under different market conditions. Provisus seeks to increase each investor’s ability to ride out market trends over the long term and to achieve better returns than that available with a single style approach, since no single strategy is right for all market situations.

In addition to the customization that is inherent in our process, the IPS can take into account other levels of customization. Investors customize a portfolio by advising us about their:

Investment goals and aspirations

1. Income required today and in the future
2. Acceptable types of investments
3. Current income tax challenges
4. Preferred geographical regions for investment
5. Any assets that are currently locked into heavy capital gains or fees
6. Corporations, trusts or estates that should be considered into the overall portfolio

Our management process can optimize investor needs into a single household investment proposal, execute the agreed strategy and display the results in one performance report that includes many accounts.

Our Transcend^™ Program has a very competitive fee based structure. Fees are calculated monthly and payable quarterly in arrears, based on the valuation of assets under management on the last day of each month and deducted directly from your accounts. You will always know the management fees on the portfolio as the fees are transparent and predictable, and calculated as a fixed percentage of the assets in your individual accounts.

Provisus Wealth Management offers investment services with an all inclusive fee. There are no additional charges for custody and trading fees. In addition, fees paid to a Portfolio Manager for non-registered accounts may be tax deductible under paragraph 20(1) (bb) of the Income Tax Act and thereby may generate a tax refund. Tax deductibility should always be confirmed by a tax specialist. Depending on a person’s tax bracket, this can reduce the after tax fee significantly when compared to other investment vehicles.

By integrating and coordinating each client’s portfolio based on their individual investment objectives and tax circumstances, Provisus Wealth Management can deliver clear tax advantages. We encompass all of a household’s assets, spanning accounts with different owners, registrations, and tax statuses (i.e. investor, spouse, joint, children, RRSP, RRIF, RESP, TFSA, business accounts and trusts) in one investment strategy. Households are managed as a tax efficient whole in our Transcend^™ Program. Armed with a complete view of the clients’ assets, Provisus is better positioned to make superior investment and tax efficient decisions.

Integrated Tax Planning Across Account Registrations

One of the greatest advantages of this type of platform is that asset allocation can be systematically conducted across taxable and tax exempt accounts. From a taxation standpoint, this allows assets to be allocated to the type of account where it makes the most sense (i.e. bond strategies should be allocated to tax exempt accounts and equities into taxable accounts). As well, income generation can be optimized by using the client’s cash flow to meet income requirements and rebalancing the accounts in the most tax efficient way possible.

Control Over Taxable Events

Holding individual securities in each investor’s name allows for control over the timing of capital gain or loss realization, unlike owning mutual funds. With Provisus timing is not a problem, since clients can instruct Provisus to harvest gains or losses at their discretion for tax neutrality. Capital gains or losses can be realized to offset capital losses or gains that have accrued both inside and outside of the Transcend^™ Program. Tax statement preparation can be facilitated as investors move securities they already own into their account at book value. The consolidated year end Annual Transaction Summary report will report fees paid and any gains or losses incurred during the year.

Overlay Portfolio Management is the process by which Provisus Wealth Management, the overlay portfolio manager, is able to oversee and coordinate the activities between the third party SMA investment managers and all the accounts managed on behalf of each investor. Overlay portfolio management not only decreases administration but also allows for a high level of customization, tax efficiency, risk and return oversight, security concentration management and portfolio optimization. Studies have shown that overlay portfolio management can add 33-100 basis points (0.33% to 1.00%) per year in total portfolio performance. On a risk adjusted basis this can be even higher.

On an ongoing basis, we continue to oversee and coordinate the activities for the accounts managed on behalf of each investor. These include the monitoring of:

Investment Management Consistency

Investor portfolios benefit from consistent management in each investment class. We review the performance of all portfolios on a monthly basis to ensure they are being managed within expectations. Provisus is also in regular contact with the third party managers as personnel changes and investment style / process can change.

Risk Management

A key aspect of the ongoing involvement in overseeing an investor’s portfolio is the monitoring of investment risk. We are able to rebalance asset classes, cash balances and investment types in line with each investor’s stated risk tolerance.

Review

Provisus evaluates investor portfolios and prepares an Annual Review in order to help investors ensure that they are on track with meeting their financial goals. We recommend that investors review their investment needs and personal circumstances at least once a year and the Annual Review allows investors to view and understand their investment profile clearly.

The overall objective is always the same, to help investors reach their long term investment goals within their acceptable risk and volatility tolerances.

Comprehensive investor communications and transparent reporting are Provisus Wealth Management specialties. In keeping with these objectives Provisus offers the following investor reporting:

Quarterly Investment Review

Reporting is made simpler when all assets are managed under a single umbrella. All investors receive a comprehensive Quarterly Investment Review (QIR) with detailed reporting on each component of their household. For accounts that report on an overall household basis, the individual return information is consolidated and flows up to show returns and overall values at the household level.

At the individual component level (the individual account), investors receive a detailed QIR that includes a performance report showing the portfolio’s return in comparison to their appropriate benchmarks. In addition the statement shows the breakdown of the portfolio by asset class, lists the securities held at the end of each quarter and provides manager commentaries for every account.

Annual Transaction Summary

In the first quarter of each year investors will receive an Annual Transaction Summary (ATS) for their non-registered accounts. This report details and summarizes the capital gains and investment management fees paid for the year. These statements, when used in conjunction with the CRA tax slips, can be very useful when filing any required tax returns.

Online Account And Statement Viewing

Daily account valuations and transactions with prior day closing prices are available through the Provisus website. Accounts are updated on an overnight basis which allows investors to the see all of their positions, cash balances, trades and unrealized gains/losses.

Our website also allows investor’s access to their QIRs, ATSs and interesting articles.

Custodian Statements

The custodian is required to send investors monthly statements (or quarterly, if no changes took place in a particular month) which show all the transactions, portfolio holdings and values for each account. These statements are available online.  All accounts are registered in your own name at an independent custodian and are protected by the Canadian Investor Protection Fund (CIPF). The custodian will also send investors tax statements for annual filing.