Newport Private Wealth: FAQs

What is private wealth management?

Private wealth management is a term that describes customized investment management and financial planning services for high net worth individuals – including asset and income protection strategies, estate and succession, retirement planning, tax planning, etc.

Private wealth management is specifically designed to meet the needs of individuals and families – whose needs are materially different from institutional investors. Newport Private Wealth is uniquely focused on delivering private wealth management for individuals and families.

Does Newport Private Wealth replace my current financial advisor?

Our principal role is to manage your investments responsibly. Therefore, we typically replace your current investment advisor or money manager. In the case of very wealthy clients, however, we may be one of a couple of investment advisors or money managers selected to manage the family’s investments.

We do not replace your accountant, lawyer, personal CFO or family office manager, or your banker. Rather we work cooperatively with these professionals, with your permission of course, so that you enjoy a fully integrated approach to your financial affairs. We do not charge for the time we spend collaborating with these professionals. This advice is simply part of the service included within the investment management fee.

What’s the process for getting started?

Once we have mutually agreed there is a fit for us to work together, we begin the formal process of establishing our investment relationship with you and your family. We will review the financial and personal information you provide to us to prepare our recommendations for your investments and any other wealth management issues that we identify. During this process, your investment accounts will be set up and assets transferred in.

We will prepare an Investment Policy Statement. This is a written agreement that sets out how your money will be invested. Think of this as a “business plan,” against which our strategy will be implemented and our performance will be measured.

Although there is a lot of work going on in the background, we make every effort to make this transition seamless and as convenient as possible for you.

What’s the minimum investment requirement?

Our services are designed for individuals or families with a minimum of $1 million of investable assets. We also work with individuals who have high incomes, complex financial needs and/or significant illiquid net worth that merit integrated wealth management.

Clients with less than $1 million to invest are served by Lonsdale Portfolios, a division of Newport Private Wealth that provides discretionary investment management.

How will my money be invested?

Your money will be invested according to a written Investment Policy Statement (IPS) that sets out your timeline, return expectations, risk tolerance, etc. We will prepare the IPS based on the personal and financial information you provide to us.

Based on the IPS, your investments will be spread across a customized combination of five proprietary funds exclusive to Newport Private Wealth clients. Each fund has a different mandate and performs a different function in your overall investment strategy. This approach gives you access to a range of asset classes and specialty investment managers that would ordinarily be unavailable to you – due to high investment minimums or cost or both. Through participation in the funds, each investor has access to optimal diversification, liquidity and cost efficiency.

Who will be managing my money?

We select independent investment managers from around the world for every asset category.

These specialized investment managers are selected, retained and overseen by Newport Private Wealth’s Investment Committee led by our Chief Investment Officer, Mark Kinney. A rigorous vetting process is undertaken by the Investment Committee before a manager is accepted into our stable of investment managers.

Your personal point of contact is your Newport Private Wealth portfolio manager. Our portfolio managers all hold at least one professional designation (CFA, CFP, CA, LLB, MBA, etc.); many hold multiple designations. Our portfolio managers are registered with securities commissions across Canada.

Does each Portfolio Manager have a limited number of clients?

There is no hard and fast client per Portfolio Manager number because each client comes to Newport with their own unique interests and needs. Some arrive with a strong advisory team that we supplement (requiring less time), while others come to Newport requiring a fulsome overview of their wealth management needs (requiring more time). Because we are not simply an investment firm, but offer a broader array of wealth management counsel, it’s critically important that each Portfolio Manager maintains the ability to service clients attentively.

As more families come to Newport, our senior leaders proactively monitor their client teams and continually add highly qualified and talented Portfolio Managers. This ensures that we maintain the high service standards we hold ourselves to and that our clients and their families have come to expect of us.

How does Newport Private Wealth get paid?

We charge a fee for the investment management services we provide, as opposed to ‘commissions’ or ‘loads’ based on transactions. Our fees are calculated on a percentage of the investments you have entrusted us to manage. This places us in alignment with you and your interests, as we are not incented to trade or transact, but rather to protect and grow your investments. Also included in our investment management fees are our wealth management services – added value for your money.

How do I know my account is protected?

There are several layers of protection we have put in place. First, your investments are typically held by an independent custodian, National Bank Independent Network (NBIN) is one of Canada’s leading providers of custodial, trading, clearing, settlement and record-keeping services to independent registered portfolio managers. NBIN is a division of National Bank Financial Inc. (NBF Inc.), which is an indirect, wholly owned subsidiary of National Bank Canada (NBC), a public company listed on Canadian stock exchanges (TSX: NA). NBIN is also a registered trademark of NBC used under license by NBF Inc. NBF Inc. is a member of the Canadian Investor Protection Fund (CIPF) as well as the Investment Industry Regulatory Organization of Canada (IIROC). This means that at no time does anyone at Newport Private Wealth handle or have access to your cash or securities.

In addition, SS&C CommonWealth, provides independent valuation and recordkeeping for the Newport Funds in which you will be invested. The Funds are also independently audited by Deloitte LLP and our company is independently audited by PwC – both internationally recognized accounting firms.

How often will I hear from you?

How often would you like to hear from us? We will meet according to your preference and comfort level. There is no pre-established service formula you have to fit into. Some clients are quite active or have issues that require more contact. We may speak to them every other week, for example. Others prefer less frequent contact, meeting only once or twice a year to review progress against plan.

You will receive a clear and comprehensive portfolio report from us on a quarterly basis. In addition you will receive an independent account statement from our custodian, National Bank Independent Network (NBIN). You will also have online access to your accounts.

We will be in regular contact with you by email and we publish a blog for clients who enjoy being kept up to date on our investment activities and wealth management ideas. Depending on what is going on in your life, or your business, or the capital markets at any given time, the amount of contact will vary over the span of our investment relationship. By keeping the lines of communication open, we can adjust the level of communication together.

Who is your typical client?

Our clients are high-net-worth individuals and families from across Canada. While they come from all walks of life, what is common to all is a mindset: they have wealth they want to protect and grow, yet not expose to undue risk. They are looking for safe and secure management of their investments and recognize the value of a professional investment team in achieving this objective. Many of our clients also take advantage of our wealth management capabilities, which help them to better organize and optimize their financial affairs. Many of our clients are or have been business owners, as we offer specialized services for successful entrepreneurs and self-employed professionals.

Can you serve out-of-town clients?

Yes, provided the client is a Canadian resident. We have Portfolio Managers registered in all provinces and the Northwest Territories. From our locations in Toronto, Ontario; Waterloo, Ontario; Kingston, Ontario; Calgary, Alberta; and Kelowna, British Columbia we provide wealth management for clients coast to coast.