Home Page Frequently Asked Questions
 
 
  1. What is involved in becoming a Coleford client?

    The first step is to meet with us for a full and frank discussion of your current financial position as well as your investment requirements. This fact finding meeting, held at a location of your choice, typically takes 2 to 3 hours. From this meeting, we determine your risk tolerance, tax situation and objective for income and growth.

    From there we work to establish an investment policy – which acts as our guiding principle in managing your portfolio – and timeframe to put the strategy into action. The start-up process is painless and rapid.

  2. How can Coleford add value?

    Coleford adds value to its client relationships through:
    • Customized investment portfolios
    • A proven successful value-oriented investment style
    • Tax efficient investment management
    • Long-term investment continuity
    • Global experience and qualifications

  3. Coleford specializes in segregated portfolios. How do these differ from pooled funds?

    With a segregated portfolio developed by Coleford, each client has his/her own unique portfolio managed separately from other client accounts. These portfolios are tailored to the specific needs and requirements of each client. Capital gains and losses can be managed on a client specific basis.

    With pooled funds, the assets of many investors are pooled together and the individual owns units of the fund. Unlike segregated portfolios, pooled funds can result in unintended tax consequences. In addition, pooled funds cannot be customized to unique ethical, social or tax requirements.

  4. So does that mean Coleford clients can restrict certain securities from their portfolios based on ethical or other considerations?

    Absolutely. Client portfolios can be constructed to screen out securities based on ethical, social and religious considerations.

  5. Do you invest in foreign markets?

    Yes. Coleford’s equity focus is on high quality, blue-chip North American stocks. U.S. equities often comprise close to 50% of total equities, with emphasis on U.S. based multinationals. On average, U.S. corporations have demonstrated a higher profitability level than any other country when measured on a return on equity basis. It is our belief that U.S. multinationals provide an effective and lower-risk investment vehicle for obtaining international diversification. These companies are usually leaders in their markets internationally and are financially strong while adhering to North American standards for reporting and disclosure. We also invest in selected non-North American companies through American Depository Receipts.

  6. Will Coleford provide references?

    The short answer is yes. The long answer is, since our client relationships are private and highly confidential, we will only provide references once a potential client is serious about engaging Coleford.

  7. What is the difference between an investment counsellor and a financial advisor.

    Investment counsellors provide professional management of investment portfolios to meet the unique investment needs and objectives and risk tolerances of each client. Full discretion is delegated to the portfolio manager to select and trade securities that will meet these needs and objectives.

    Investment counselling is a fee for service business. Fees are charged as a percentage of the asset value of the client’s account thereby aligning the client and counsellor’s interests. Investment management fees are the investment counsellor’s only source of revenue.

    The term "Financial Advisor" has been used to capture the activities of a number of investment intermediaries including retail stockbrokers and mutual fund and insurance representatives. Unlike a fee-for-service financial planner, the remuneration of many financial advisors is based on transactions from a wide selection of financial products and services including stock and bond execution, mutual funds, and insurance products.

  8. What is portfolio turnover and how does it affect a taxable client?

    Portfolio turnover measures the percentage of the portfolio’s equity securities that is sold and replaced with other securities. Over the long term, low portfolio turnover provides tax benefits because fewer taxable capital gains are generated. High portfolio turnover that is associated with some actively traded portfolios results in the generation of higher taxable capital gains and higher transaction costs. High portfolio turnover does not necessarily enhance portfolio performance but does significantly increase costs.

    Coleford’s typical portfolio turnover has been very low, averaging less than 15% per annum.

  9. My spouse has $400,000 between RSPs and fixed income investments and I have $600,000 between my RRIF and a taxable stock portfolio. Do we meet Coleford’s investment minimum?

    Yes. The combined family assets meet our investment minimum.

  10. Coleford uses a custodian. What role does a custodian play?

    Employing an independent, third party custodian "such as a trust company or brokerage firm" is a common practice for all private wealth managers, including Coleford. In fact, Coleford has a number of custodial relationships with many of Canada’s leading trust and brokerage firms. As the word implies, the custodian holds the securities in safekeeping and has the specialized resources to offer this service. The custodian, does not, however, have any authority to make day-to-day investment decisions. These decisions are the responsibility of the managers at Coleford.
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