Fieldhouse Continued Growth With Quality Advisors
Our continued commitment to a Canada wide network of high quality portfolio managers, advisors and investment professionals has continued into 2020. Fieldhouse’s ability to offer portfolio managers efficient fund vehicles to employ and distribute their investment strategies has been an attractive feature for advisors moving to Fieldhouse to grow their practice and better service their clients.
As an independent firm we are not bound to any particular product or style. It means our clients can gain access to wealth management solutions that suit their unique needs. With multiple custodians and relationships we can hunt for returns across a global marketplace.
When we find portfolio managers with a high quality strategy, that isn’t ordinarily available in the market or can offer clients a best of breed solution, we can build a fund vehicle – the portfolio managers can offer their strategy via the FundSERV distribution network and effectively manage their client accounts in a single efficiently managed fund.
We spoke to Todd Riley, Head of Business Development at Fieldhouse about the benefits.
The Benefits of a Fund
Head of Business Development
778 330 3016
Advisors often feel that they could do more for their clients if they were able to wrap their strategy into one effectively managed strategy. Rather than operate individual client accounts and manage the various tax reporting issues across hundreds of clients, often with multiple accounts, a fund centralizes the effort. It means fund managers can spend more time developing investment strategy and delivering to clients rather than being overwhelmed with extra paperwork that in many cases requires hiring of additional resources.
A Single Cost Effective Portfolio
When advisors come to Fieldhouse not only do they enjoy our multiple custodial network to offer real market coverage but they realise that there are real benefits in operating a fund mandate for the clients. Instead of having hundreds of trades and rebalancing headaches they can manage one, albeit much larger, account which inevitably offers the opportunity to lower the fees clients pay.
Potential Tax Benefits
Additionally in cash accounts, managing a fund can offer some tax benefits to the client. Only redemption or dividends paid from the fund are taxable events for the client. Buy and hold clients don’t pay tax even if the fund has traded. It can make tax time very simple and straightforward for the client, their accountant and for the manager to report.
Equality of Clients
Smaller clients often do not get access to cheaper products – the investment barrier can simply be too high, even for high net worth clients. However a fund allows all clients to pool their purchasing power to get lower execution fees and in many instances lower fees on 3rd party products. Those savings are passed directly to the fund and every client benefits fairly.
Alignment of Interests
Although all the benefits aren’t explored here, investment professionals who manage funds can set their fees competitively and in a way that aligns to the client. Many of our managers run low management fee products with incentive fees – when the fund performs and the client benefits so does the manager.
- Tax benefits
- Cost effective structure
- Better purchasing power
- Alignment of manager with client
- Easier reporting
Todd Riley, Head of Business Development. 778 330 3016