The Sharpe-Way Group offers a comprehensive solution to income generation from an investment portfolio by leveraging many different types of income generating investments which are assembled in a manner that is consistent with our clients’ investment objectives and risk tolerance.
Regular monitoring of investments held in income oriented portfolios.
With over thirty years of managing investments for clients who require income, our team together with the tremendous strength and resources of Scotiabank, are in an ideal position to provide clients with unique opportunities to achieve income objectives.
- We believe every client deserves a professionally prepared financial plan. To support this belief, we have Shawn Cooper as our dedicated financial planner. Together we will map your complete financial landscape and provide a focal point for all we do. Experience suggests a financial plan goes a long way in reducing investor anxiety – especially during times of market volatility.
- We believe communication is the key. Not only can you expect continuous updates on your holdings but you can always rely on us to remain objective and provide you our best advice. Unlike many in our industry, we put our client’s needs first. Always.
- We believe our portfolio review process is industry leading. With discipline and diligence, we continuously monitor your account holdings and markets. Our objective is to proactively address your situation and give you more time to focus on your family, career and other important pursuits.
- We believe every call should be answered. We have the resources available to respond quickly and competently to all questions and concerns. We understand that although we cannot control markets, we can control our service and that is very important to us and the families we serve.
- We believe in fee transparency. Clients should know what they are paying and the services they are receiving. As your professional advisory team, we work for you and our primary objective is to deliver value for the costs involved, including:
- Extensive risk management oversight.
- Day-to-day monitoring of the markets and your portfolio.
- Access to leading portfolio research.
- Access to a team of specialists including tax, business, insurance and financial planning specialists, who are available to help you grow, protect and share your wealth.
There are numerous approaches to wealth management, but ours is a relatively simple one: to assemble a balanced portfolio of high quality fixed income investments in the form of bonds, debentures and some externally managed funds that invest in the fixed income sector, together with a portfolio of individually selected equities, that are leaders in their respective fields, generally pay a decent dividend yield, and are well diversified around a variety of market sectors. Occasionally, we use an ETF for exposure to a particular sector, but the majority of our equity portfolios are made up of individual stock positions. We focus on mid and large caps, and the majority of them trade on the TSX, where clients get the benefit of the dividend tax credit and the relative safety of Canadian regulation and accounting standards.
We have two platforms which we use when working with clients. One is our Partnership Plus platform, where clients are required to give us final approval for all purchases and sales. We also have our discretionary Portfolio Management certification, which allows us to offer the Managed Portfolio Program (MPP). We work with you to develop a detailed investment policy statement (IPS) outlining your specific goals and objectives, and clients can specify specific preferences if they wish, such as the exclusion of certain securities. However, once this document is agreed to, MPP clients don’t have to be involved in the individual security decisions; we simply do what we need to do to manage the portfolio to your objectives. No decisions are being handed off to 3rd party managers or any other group, the security selection and portfolio management would remain within The Sharpe-Way Group.
In our minds, a reasonable exposure to any one security (other than an ETF which is itself diversified) is 3% to 5% of an overall portfolio, unless it is extremely blue chip (like a bank stock) that we might let grow to be 6% or 7% of a given portfolio. Taxes are also a consideration as we lock in gains, and we try to manage the tax exposure in taxable accounts so it is reasonable in any given year. To us, management of exposure to any one equity is key. It is this diversification that helps to mitigate risk and minimize the impact of an adverse event in any one portfolio position.
In a low economic growth environment (1% or 2% global growth) we need to look for certain characteristics in the companies we invest in to obtain earnings growth rates well above just the natural GDP growth rate. This can be accomplished by identifying at least one of a number of potential catalysts, such as cost cutting, taking market share, merger and acquisition activity, dividend increases and share buyback programs. We also like companies that have high barriers of entry into their business, have a wide “moat” of protection to their business model and sometimes have a degree of regulation around them. Many of the companies we select for portfolios can be characterized to have at least one of these attributes, and many have more than one. Searching for companies that fit these criteria has led to a higher level of stability to our portfolios and return outperformance overtime.
The Managed Portfolio Program (MPP) is the preferred platform of Sharpe-Way Group clients for the management of their investment portfolios. MPP is a discretionary investment management option that enables clients to delegate the task of making the everyday decisions that help maintain a healthy and prudent investment portfolio. While this program frees clients from having to give their consent for every recommendation that we may have for their accounts, clients will still maintain control over their asset allocation and investment goals and objectives.
As always, we build a portfolio tailored to each client’s unique needs and circumstances. In the Managed Portfolio Program, we work with clients to develop a detailed Investment Policy Statement that will help ensure that their portfolio continues to accurately reflect their changing needs over time. Clients will continue to receive regular communication from our office through phone calls, quarterly reviews, meetings and our regular daily edge reports throughout the year.
In addition to the benefit of not having to make the day-to-day decisions in client portfolios, benefits to the Managed Portfolio Program include:
- Clients do not pay fees on the trades that we make on their behalf; instead, all costs and expenses are covered by one transparent, all-inclusive fee.
- This fee is not tied to the amount of trading activity that occurs in the accounts, rather on the overall value of the portfolio. Therefore, our interests remain 100% focused on our clients achieving their investment goals and objectives.
- The fee is fully tax-deductible in non-registered accounts and we waive all annual administration fees that are charged to registered plans.
- This program enables The Sharpe-Way Group to be more nimble and effective at entering and exiting the market, without the restriction of having fees to consider for each recommendation we may have. In other words, it allows us to react quickly to rapidly changing market conditions on our clients’ behalf.
- As part of the Managed Portfolio Program, we update the Investment Policy Statement every two years to reflect updated client circumstances and objectives or more frequently if there is a change that requires a change in client objectives.