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The Wyndham Investment Process

DISCRETIONARY MANAGEMENT. PROVEN PROCESS.

The Wyndham Group’s discretionary managed portfolio program is the process that we use to invest for the majority of our clients. Within this structure, we manage money for our clients based on their unique financial goals and risk tolerances. On top of this, we work with our clients to identify and achieve their financial goals through all stages of life. Below you will find an explanation of the important elements of this offering.

  • Discretionary Management
  • Fee based accounts
  • Asset allocation
  • Fixed Income Portfolio
  • Equity Portfolios
    • Canadian Equity Portfolio
    • US Equity Portfolio
    • Specific Mutual Funds
  • Reports
  • Financial Planning
  • Estate Planning
    • Insurance
    • Wills
    • Power of Attorney
  • Annual reviews

What is Discretionary Management?

Discretionary Investment Management is a structure to manage wealth where the buy and sell decisions are made by a portfolio manager on behalf of the client. It is limited to investment advisors with the advanced “Portfolio Manager (PM)” designation. The benefits of this approach is that it removes the day to day burden of investment decisions from the client and allows the client / advisor relationship to focus on the bigger issues such as risk and asset allocation, as well as financial, estate and tax planning.

What is a Fee-based Account and how does it work?

Accounts can be divided into two types: commission and fee-based. Traditionally, investment accounts were generally commission based. In these accounts, clients are charged a commission every time they buy or sell a security.

In a fee-based account, such as a discretionary account, the client is charged a percentage fee based on the assets managed. For this fee, clients receive: [MRP: these should be bulleted]

  • Ongoing investment planning and management
  • A full range of financial planning services such as retirement, education, estate and tax planning
  • Advice and assistance with individual financial needs
  • 1/12th of the annual fee is charged on a monthly basis based on the prior month’s asset level. Fees can be paid within or outside the account. Fees charged on non-registered accounts are tax deductible.

1/12th of the annual fee is charged on a monthly basis based on the prior month’s asset level. Fees can be paid within or outside the account. Fees charged on non-registered accounts are tax deductible.

Please contact us for details of our fee schedule.

Asset Allocation: Why it matters for you.

The volatility of a portfolio and the risk associated with this can be dramatically reduced by carefully constructing an appropriate asset mix of cash, fixed income investments, and equities. Allocation to different geographic sectors and industries are also considered. Through a detailed analysis, we will determine what return you require to reach your goals, along with what level of risk you are personally comfortable with. Once established, we will recommend an asset allocation that best suits your individual needs and situation.

What is the Composition of the Wyndham Fixed Income Portfolio?

The Wyndham Fixed Income Portfolio consists of short- to medium-term, investment grade bonds along with several managed fixed income funds. These funds are utilized to get exposure to various geographic and high yield sectors. Depending on market conditions, the Wyndham Fixed Income Portfolio may also hold preferred shares or mortgage instruments.

How are the Equity Portfolios constructed and maintained?

Equities in the portfolio are chosen based on a quantitative process. Non-emotional investing is at the core of our philosophy. Financial data on all companies within a certain universe is compiled and analyzed on a daily basis. Companies are then ranked based on their current financial strength as determined by our criteria. Top companies are included in the portfolio. Companies that fall below a certain grade are immediately removed and replaced by a higher ranking company.

Canadian Equity Portfolio

The Wyndham Canadian Equity Portfolio is comprised of 20 highly ranked companies as per our ranking system noted above. Companies considered for this portfolio rank in the top 250 stocks on the TSX by market float, and are growing their earnings, cash flow and dividends on a five year basis. The turnover of this portfolio has averaged roughly 50%.

US Equity Portfolio

The US Equity Portfolio follows a similar screening process to that of the Canadian Equity Portfolio. Our selection criteria is applied to the S&P500 index producing a 20 stock portfolio consisting of companies that are growing their dividends, cash-flow and earnings.

Mutual Funds

To further diversify client accounts, select mutual funds with a similar philosophy are sometimes utilized. This provides concentration and geographic diversification. All mutual funds used are screened and monitored by the Wyndham Group on a regular basis to ensure that their risk, performance and process are consistent with our approach. Mutual funds are purchased for our clients on a no-load basis. We do not receive any compensation from mutual fund companies and, as such, our clients are charged lower institutional rate mutual fund management fees.

For smaller accounts, such as TFSA’s and some RESP’s, we will also use mutual funds to provide appropriate diversification.

What Reports Will I Receive?

Clients in the discretionary management program receive monthly statements. In addition, you will receive quarterly household portfolio reports and annual summaries. You will not receive trade confirmations such as those received in commission accounts.

Will I Have Access to Financial Planning?

Yes. Depending on your needs, we can provide you with everything from a basic retirement projection to a detailed financial and estate plan.

What Estate Planning does The Wyndham Group Provide?

  • Insurance: We have access to the top insurance companies in Canada and are licensed to provide you with life, critical illness and disability insurance.
  • Wills and Power of Attorneys: We will guide you in establishing your Wills and Powers of Attorney. For basic forms, we can show you low cost alternatives, and for more complicated situations, we have worked with several lawyers with whom we can refer you to.

Once I sign up, how often do we meet?

At a minimum, we recommend a review once per year. More frequent meetings can be held depending on your preferences. Major changes in your life situation such as marriage, children, or new employment merit a full review.