Separately Managed Accounts
A Separately Managed Account is the cornerstone of the service that BCV provides to clients. As its name suggests, a client’s investment portfolio is held in an account in their name, separate from accounts of all other investors. The client’s investment portfolio is managed to meet their unique investment requirements as outlined in the Investment Policy Statement.
Separately Managed Accounts have long been used by corporations, trusts, endowments, pension plans and wealthy private investors. These investors demand a level of attention to their portfolio that simply cannot be met by mass-market retail investment products. These investors require a direct relationship with the professionals who are managing their investment portfolio.
Separately Managed Accounts have seven key advantages over mutual funds and other similar investment products:
Fees
BCV has a maximum annual management fee of 2.00% of a client’s assets. This fee is generally tax-deductible in non-registered accounts.
Tax Efficiency
Separately Managed Accounts provide the ability to control the timing of transactions that have tax implications. Each portfolio holding has a cost base that is unique to the client, with realized capital gains or losses reflecting their actual gains and losses.
Performance
Separately Managed Accounts are typically fully invested, providing the opportunity to earn investment returns on equity and fixed income positions, as opposed to retail mutual funds that hold cash balances.
Customization
Separately Managed Accounts invest only in assets that are consistent with a client’s Investment Policy Statement, which is unique to each investor.
Service
Separately Managed Accounts enhance the personal level of service from the Portfolio Manager. Clients receive a customized investment experience through a direct relationship with their Portfolio Manager.
Transparency
Separately Managed Accounts allow the client to be fully aware of their investments. Clients receive transaction confirmations and monthly or quarterly statements from the custodian. Clients have access to their account information online through the custodian. In addition to this, BCV sends quarterly and annual statements, with performance reporting and commentary from the Portfolio Management team.
Management Focus
Separately Managed Accounts reflect the investment style of the Portfolio Manager and the constraints of the Investment Policy Statement. This structure enables the Portfolio Manager to focus research efforts on a manageable number of companies within their area of expertise, allowing for a deeper understanding of both the companies and the industries in which they operate.