STEWARDS OF YOUR WEALTH

FROM ONE GENERATION TO THE NEXT


Focused on you

Our primary goal is to see that you achieve yours. Each client’s investment mandate is determined in consultation with the client, in order to select a suitable type of account for the client’s specific objectives and circumstances.

Aligned with clients

As an independent firm, we are not incentivized to sell expensive investment products that are not right for you. Furthermore, we eat our own cooking, investing alongside our clients.

Portfolio Construction Process



"Our portfolio construction process creates a plan that's tailored to your needs and goals."


Michelle Tatham, P.Eng., CFP
Associate Portfolio Manager


Discovery

A Generation portfolio manager consults with each client to determine an appropriate investment mandate that fits with the client’s specific objectives and circumstances.
Implementation

We construct a portfolio for the client’s mandate based on the relevant model portfolio(s) or a customized approach.
Reporting

We keep our clients informed through regular contact, including quarterly portfolio statements and market letters. Direct access to portfolio managers is encouraged to ensure we are informed of changes to clients’ financial circumstances.
Ongoing Review

We encourage regular contact to allow the portfolio manager to be made aware of any changes in a client’s financial situation, which may warrant a different investment mandate.

Leverage our client service and global investment expertise

Growth Strategies

Generally for clients whose principal objective is long-term capital appreciation.
Income Strategies

Generally for clients whose principal objective is the generation of current income from investments.
Balanced Strategies

We construct balanced portfolios drawing on our Growth and Income strategies, with the percentage allocated to each tailored to clients’ particular objectives, risk tolerances and financial circumstances.
"You deserve better advice than what you get from a call centre or your bank."

Mike Vinokur, CFA
Portfolio Manager




Q & A
Who manages client accounts?

We have a team of experienced portfolio managers, one of whom will discuss your objectives and circumstances with you to assess the appropriate asset allocation and investment mandate(s) for your account(s), and will maintain a direct relationship with you. In most cases, the investment and trading decisions for our managed accounts are made centrally by GPMC's investment team, with the support of our other portfolio managers and research analysts.

Where are client assets custodied?

Assets are held in client name at major financial institutions. All cash and securities of our Canadian and U.S. clients (except IRA accounts) are custodied by Fidelity Clearing Canada ULC (“Fidelity”), TCC’s “carrying” broker. Fidelity is an indirect, wholly-owned subsidiary of FMR LLC. FMR LLC and its subsidiaries, including Fidelity, conduct business under the “Fidelity Investments” name throughout the United States and Canada and collectively comprise one of the world’s largest providers of financial services.

All cash and securities of IRA accounts are custodied by U.S. Bank Institutional Trust & Custody, a division of U.S. Bank National Association, a subsidiary of U.S. Bancorp. U.S. Bancorp is one of the largest financial holding companies in the United States. IRA accounts incur custodial fees at favourable rates negotiated by us with the custodian.

What is the relationship between Generation Portfolio Management Corp. and Generation Advisors Inc.?

GPMC and GAI are affiliated companies. GAI is a Canadian investment dealer, founded in 1998. GPMC and GAI share senior management and other personnel, and occupy the same office premises. Both GPMC and GAI offer portfolio management services for high net worth individuals and the two organizations exchange research ideas and strategies. Pursuant to your investment counsel agreement with GPMC, we will open an account in your name at GAI, as dealer. GPMC uses GAI exclusively for trade execution and other brokerage services.

Do you manage each client's account separately or do you pool accounts?

Although we generally manage each client's account separately (i.e., direct holdings of individual securities), from time to time that may not be ideal for a particular account. For example, for a client with a small registered plan account, in order to receive the same asset diversification benefits and to achieve cost benefits, we may invest all or a portion of the client's account in one or more pooled funds managed by us, provided the account is eligible for investment in such funds and each fund's mandate matches the client's objectives.

How do you use short selling?

A short sale is a sale of a security not owned but borrowed from a holder and subsequently returned to that holder when it is repurchased in the market. The short seller profits if the repurchase price of the security is below the initial sale price. For long/short accounts we can short sell stocks which are overvalued relative to their fair market value and/or have poor or deteriorating fundamentals, such as an overleveraged balance sheet, diminished growth expectations and/or a low return on capital. Short selling potentially enables us to realize a return, but also to potentially hedge or insulate our long positions in down or volatile markets where our outlook for the market or a particular sector is negative.

What are your options strategies?

We may use options strategies for hedging or investment purposes to the extent such strategies are appropriate and permitted for a client’s account. We can use options to invest indirectly in securities or financial markets, and provide downside protection to the portfolio where we anticipate a bear market or changes to exchange rates. For example, we can sell put options to earn premiums to lower effective purchase prices (at a strike price where we would want to purchase a security in any event) or sell call options on securities we already hold to earn premiums to increase effective selling prices (at a strike price where we would want to sell or short sell a security in any event). We may also use options to initiate synthetic long or short positions with a view to maximizing risk-adjusted portfolio returns. We may apply our proprietary methodologies to these strategies by using put or call options with strike prices that are at or near floors or ceilings in our work.

How do you use margin?

Our managed accounts may use margin judiciously from time to time for clients who agree, where we are fully invested but wish to invest in additional attractive opportunities and/or further diversify. Margin involves borrowing funds against the assets of the account, a strategy which is often compelling from a tax point of view, since margin interest is tax deductible against earned or ordinary income and the potential capital gains are taxed at more favourable rates than dividend and interest income. Leverage increases both the possibilities for profit and the risk of loss for the account.

What is your investment process? How do you manage risk?

Learn more about our investment process and risk management here.

Account types for any goal

Save for retirement. Diversify. Grow your wealth. Generate income.

RRSP
Most popular retirement account. Avoid taxes today, pay after you retire.
TFSA
Avoid taxes on gains, dividends, and interest over time.
RESP
Save for your child's education through a RESP.
Non-Registered
Flexible investment account.
IRA
Provides tax advantages for retirement savings for U.S. clients.
RRIF
Convert your RRSP after age 71.
LIRA
Account type for pensions from previous employers.
Corporate
For corporations and entrepreneurs.

How Model Portfolios Work

We manage each client account based on corresponding model portfolios, which are notional allocations of securities. Once the client mandate has been established, we construct a portfolio of securities based on the applicable investment model(s) selected to guide the investments for the client’s account(s). Generally, client portfolios will effectively mirror the holdings of the applicable model but may account for client-specific factors such as income requirements, tax-related considerations and investment requests or restrictions specified by the client. A particular client account’s holdings and weightings may also deviate from the model as a result of the composition of the client account and cash available to purchase new positions and/or market forces which impact whether specific securities will be purchased, sold, or held for a client account from time to time.

Transparent Portfolio Reporting

We keep our clients informed through regular contact, including quarterly portfolio statements and market letters. Regular direct access to portfolio managers is encouraged to ensure we are informed of changes to clients’ financial circumstances.

Clients receive a comprehensive quarterly statement detailing all current positions and each transaction during the period. An in-depth quarterly letter discusses our market outlook and significant portfolio holdings. Annual tax reporting includes all income, capital gains/losses and portfolio expenses during the year.

Brokerage and Custody

We generally use our affiliated investment dealer, Generation Advisors Inc. (GAI), for brokerage services, including trade execution. GAI shares common ownership with us, as well as certain personnel and office premises, and the two organizations exchange research ideas and strategies. The cash and securities of each client are custodied in an individual account held in the client’s name at a major financial institution.

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