Frequently asked questions
Gestion de Portefeuille Stratégique Medici is registered with the AMF as a portfolio manager and investment fund manager. Our main responsibility is to develop quality portfolios tailored to both the financial goals of our clients and to the level of risk each client is comfortable with.
Medici also follows the Code of Ethics and Standards of Professional Conduct from the CFA Institute, which is the ethical benchmark for investment professionals, and which stipulates that we must place the integrity of the profession and the interests of our clients before those of Medici, its portfolio managers, or its employees.
Medici has partnered with the National Bank Independent Network (NBIN inc.), a wholly-owned subsidiary of National Bank of Canada, which acts as Medici’s trustee and portfolio administrator. As a result, client accounts are opened with NBIN inc. and clients are the only ones who can withdraw money from their own account. Medici’s portfolio managers are only authorized to purchase and sell securities for you, according to the agreed mandate; they do not have control over amounts withdrawn or deposited in your accounts.
NBIN inc. has operated within the financial services sector for over 25 years and is now Canada’s leading provider of custody, trade execution, and brokerage solutions to independent wealth management firms, services for brokers, and independently registered portfolio managers. NBIN serves over 400 firms from coast to coast, all of which benefit from the financial security of the National Bank of Canada (NBC). NBIN is a division of National Bank Financial Inc. (NBF Inc.), a wholly-owned subsidiary of the National Bank of Canada (NBC), which is a publically traded company on the Toronto Stock Exchange (NA: TSX). The National Bank Independent Network trademark is owned by NBC and used under license by NBF Inc., which is a member of the Canadian Investor Protection Fund (CIPF), and is also a member of and subjected to the Investment Industry Regulatory Organization of Canada (IIROC), a national self-regulatory surveillance organization for all dealer firms and any trading activity on Canadian equity marketplaces.
MEDICI manages the portfolios of its clients in a discretionary way. This means that during our first meeting together, we will work with you on defining an Investment Policy Statement that our team will agree to follow during our entire business relationship. Our investment decisions will then be made according to this Investment Policy Statement.
We are never under the obligation to contact our clients or receive their authorization before completing a transaction. In this way, we are fully accountable for the management of client portfolios. For the same reason that an engineer wouldn’t ask a client if the pillar he plans on using is strong enough to support a building, we believe that we are the best people to make the necessary decisions to manage your portfolio.
This management style means that it is our responsibility to act transparently and honestly with all our clients. As a result, our portfolio managers frequently communicate our strategy and our decisions during in-person meetings, in our quarterly letters, in video presentations, and in our frequent media appearances. Although our clients do not choose the content of their portfolios, we provide them with all the tools they need to evaluate the quality of our work.
Our fees are based on a percentage of assets under management. Our rate varies depending on the size of your portfolio. Please contact us for more information.
Since our role is both that of financial advisor and portfolio manager, and since we offer a true private management service, our fees are much lower than those charged by advisors who sell mutual funds.
We do not charge any trailer fees or commission per transaction, nor does Medici bill any front loaded or back ended fees. There are no hidden fees. The only fees we charge are paid monthly, and these fees are totally transparent since they can be found on your investment statement. Each year, we provide you with an annual report outlining your fees and your returns, which allows you to compare the fees you paid with the added value that we provided through our work.
On average, our clients invest more than $1 million with us. We accept investors who have a minimum of $750,000 to invest, or who are in an asset accumulation phase. We invite you to contact us to know if you are eligible. We will evaluate your financial situation, explain our selection criterias, and make you an offer if you are eligible.
Medici partners with one of the major Canadian banks (National Bank Independent Network) as its trustee, which guarantees the security of our client accounts. By choosing Medici to manage your portfolio, you benefit from the same security measures as those offered by any large Canadian financial institution.
As for their investment and wealth management services, many large financial institutions follow a standard of convenience. They don’t feel that it’s necessary to make decisions based on the best interest of their clients. This practice tends to promote short-term financial goals that benefit the financial institution itself, and not the interests of the client.
By choosing Medici to manage your assets, you will benefit from a team of professionals who act as your trustee instead of following the standard of convenience of large financial institutions. We make our decisions based on your interests, which are always more important than those of the firm or our managers. We do not sell any financial products, we personally invest in the same companies that we purchase for our clients, and our fees are based on a percentage of your assets—therefore, our interests are entirely aligned with yours.
Yes, in addition to managing all of a person’s accounts, we can manage the entirety of a family portfolio (spouse and children). We also manage company accounts for entrepreneurs, self-employed workers, doctors, and other managers.
Our older clients often like to meet with us with their children and spouse, which provides them with an opportunity to pass down notions about savings and investments to their family, while ensuring the stability of their assets when the time for succession comes.
Our team is composed of nine portfolio managers, one associate portfolio manager, one financial advisor, and several management and administrative assistants. Our portfolio managers conduct their own research and written analyses, which are submitted to our investment committee for review every week. Please take a look at our “About” section for more information.
As we enact our investment strategy and purchase stocks, we select companies that are profitable and come with sustainable competitive advantages. For example, the majority of companies we invest in have a very low debt level, and often no debt at all. The companies we choose must be able to resist crises and recessions, since they are unavoidable.
On our website, you will find the average returns for our clients with portfolios composed of 100% common stocks. Depending on your investment profile, having 100% of your assets invested in common stocks might not be appropriate. This is the case for many of our clients, who therefore own both stocks and fixed income securities. By entrusting Medici with the management of your portfolio, you enter into a relationship with professionals who will take the time to evaluate your tolerance to risk and determine the asset allocation that is appropriate for your personal situation.
For instance, our managers tend not to invest money that will need to be withdrawn in the next five years into common stocks.
Each year, we meet our clients on an individual basis so we can define their financial goals and offer practical advice that will help them achieve these goals. We have the required experience and knowledge to answer most financial questions that clients ask us. We also offer a free analysis service for retirees, which allows those clients who wish to do so to follow the evolution of their portfolio and identify measures to put in place to make the most of their retirement when the time comes.
We can also evaluate the portfolio of any investor who would like to have a second opinion on how their wealth is currently being managed.
Once the required forms are signed, Medici transfers all the documents to the National Bank (NBIN). Although the NBIN is responsible for transfering your funds into your new accounts, our team makes sure that your assets are transferred with the correct quantity and at the correct price. You can also oversee these transfers at any time by viewing your portfolio online during this process. We communicate with new clients on a regular basis to inform them of how the transfers are taking place.
Our clients can view their online portfolio at any time and at no additional cost by accessing the “Client Login” section of our website. Every day, our system is updated with data from the National Bank so you can see all the information you need to keep track of your portfolio. For example, you can access a global view of your portfolio that combines every account, a calculation of the total unrealized gains and losses, and a daily summary of the performance of each securitiy (including dividends and interest received). Online and on demand, you can access portfolio statements that are easy to read. You will also receive an account statement from the National Bank every month.
We communicate with all our clients regularly. We meet for an individual portfolio review every year, we write a quarterly letter, and we also share some of our media appearances throughout the year. We publish short videos about our investment strategies that can be viewed on our website and on our social media pages. Clients can also easily reach us by phone, by email, or in person at our offices. We take pride in our team’s availability, and it’s important to us that clients can have an honest conversation with one of our portfolio managers whenever they feel the need. As opposed to many others in the finance sector, all our communication tools are prepared in-house, which means they address real concerns that are relevant to our clients.