Relationship Disclosure Information
TriCert is registered as a Portfolio Manager in Ontario, Alberta, British Columbia, Manitoba, Newfoundland, New Brunswick, Nova Scotia, Prince Edward Island, Quebec, Saskatchewan, Northwest Territories, Nunavut, and Yukon. TriCert is registered as an Investment Fund Manager in Ontario.
1. TriCert as Portfolio Manager and Investment Fund Manager
You have engaged TriCert to manage your investments on a discretionary basis through individually managed account(s) pursuant to the terms of an Investment Management Agreement. Discretionary management means you have given us the authority to act with full discretion on your behalf to open account(s) with brokers and dealers, and through them to purchase and sell securities for your account(s). We will have the authority to execute trades for your account(s), but not to withdraw money or securities from your account(s) (other than our fees).
As a discretionary portfolio manager, we act in accordance with a fiduciary standard of care, which means we act in your best interests and in accordance with the standards of skill, duty and care expected of a reasonable Portfolio Manager. The decisions we make about your account(s) will be subject to the parameters of your Investment Policy Statement (IPS). We apply our QSect approach to your account(s) based on your unique goals, circumstances and, most importantly, risk profile. Our QSect approach utilizes a quality, sector-based methodology, matching a client’s risk profile with a tailored portfolio to meet goals while comforting clients through volatile markets.
We also manage investment funds structured as pooled trusts (the “TriCert Funds”). We are also the manager, trustee, adviser, and distributor of the TriCert Funds. TriCert manages two funds:
- TriCert QSect Equity Pool – an equity fund constructed with a diversified selection primarily of Level 1 securities and/or investment funds/ETFs to achieve its objective. Securities are selected from established securities exchanges with a particular emphasis on North American equity securities, including international equities trading as American Depository Receipts (ADRs) or Canadian Depository Receipts (CDRs).
- TriCert QSect Income Producing Pool – an income producing fund with a diversified selection of income producing securities and/or investment funds/ETFs to achieve its objective. Securities are selected from the fixed income market, including government, corporate, and other, including ETFs and other fixed income alternatives, including preferred shares.
Where determined suitable for you in accordance with your IPS, at our discretion, your assets may be invested in the TriCert Funds.
As your Portfolio Manager, and as manager, trustee, adviser, and distributor of the TriCert Funds, we owe a fiduciary duty to you, our other portfolio management clients, and the TriCert Funds. We uphold our duty to act fairly, honestly and in good faith in the best interest of all our clients and the TriCert Funds, and all investment decisions made on your behalf will be made in accordance with our standard of care.
2. Products and Services
TriCert’s Portfolio Managers may purchase or recommend a combination of Cash, Income Producing Instruments (i.e., Bonds & Preferred Shares), Equity, Alternative Investments, and Investment Funds, for your account(s), which have been approved by TriCert.
We believe that a proper asset allocation is the single largest factor affecting the overall investment returns of a portfolio. Our Portfolio Managers are knowledgeable about the products that we buy, sell, or recommend to you. Depending on the stage of your investment journey, we may utilize a series of account(s), invest your assets in the TriCert Funds, or create a new portfolio to enable a higher level of customization and streamlined tax loss/gain harvesting. No securities will be held in your account(s) unless we have determined that they are suitable for you.
TriCert offers a combination of proprietary and non-proprietary products. The TriCert Funds are considered proprietary products and related and connected issuers of TriCert under applicable securities laws, as TriCert (or an affiliate of TriCert) acts as manager, trustee, adviser, and distributor to the funds. We will only invest your assets in the TriCert Funds if we believe they are suitable for you, taking into consideration the asset mix and potential diversification, tax, cost, and/or other advantages of investing in the TriCert Funds. Please refer to the “Conflicts of Interest” section below and our Conflict of Interest Client Disclosure for more information on how we manage the conflicts of interest associated with trading in proprietary products.
TriCert Financial Group
The products and services we offer are complemented by services offered by our partner firms. As a member of the TriCert Financial Group, together with TriCert Insurance Agency Inc., TriCert Private Wealth and our TriCert partner Chartered Professional Accountant (CPA) firms and their related Financial Service Entities (FSEs), TriCert takes a holistic tax-efficient approach to wealth management.
Collectively, the TriCert Financial Group provides tax planning, financial planning, investment management and insurance services. With 25 years of demonstrated expertise, clients benefit from the integration of their trusted accountants’ business, tax and financial planning advice, TriCert Investment Counsel’s portfolio management, and TriCert Insurance Agency’s ADꓯPT process. Taking a holistic view of your financial affairs, together with your tax plan, financial plan, and broader financial landscape, we tailor solutions unique to you. Your financial plan’s goals serve as our benchmark for building portfolios that let you sleep soundly, optimize tax efficiency, and deliver results. Please speak to your TriCert Portfolio Manager if you would like to know more about any of the products and services offered by the TriCert Group of Companies.
You will receive details of any referral arrangement we enter into with respect to your account(s), with other members of the TriCert Financial Group or otherwise, and we will provide you with written disclosure regarding the arrangement prior to entering into it. This information will include the name of each party involved, the purpose and material terms of the arrangement, and the method of calculating the referral fee (if any).
3. Knowing our Clients
TriCert’s Portfolio Managers make securities decisions for your account(s) based on your IPS (which is in turn based on your responses to the Investment Policy Questionnaire), your personal and financial information (“Know Your Client” information) and their assessment of the suitability of the securities held in aggregate.
TriCert relies on the personal and financial information that you have provided in the IPS for your account(s). You are required to advise your TriCert Portfolio Manager immediately if there is a change to such information or any other “Know Your Client” information as it may warrant a change to the investment objectives or risk profile of your account(s) and/or to your portfolio holdings. TriCert takes reasonable steps to keep this information current, and your TriCert Portfolio Manager will review your IPS with you periodically to ensure it continues to reflect your investment needs and circumstances.
TriCert’s Portfolio Managers are not permitted to receive instructions from other parties relating to securities selection in your portfolio. Also, for your protection, withdrawals from your account can be directed to the named owner of your account only.
4. Obligation to Assess Suitability of Investments for You
TriCert has an obligation to assess and determine whether a purchase or sale of a security is suitable for you prior to executing a transaction, making a recommendation to you, or accepting your instructions. Any investment action taken, recommended, or decided on by TriCert must be suitable for you and in your best interest.
The factors that guide us in our decision as to an appropriate IPS and investment strategy for your account(s) include what we understand to be your current “Know Your Client” and other information, which consists of:
- Personal circumstances: We need to have sufficient information about your personal situation to be sure our decisions and recommendations are right for you. Personal circumstances include things like your age, civil status or family situation, number of dependents, etc.
- Financial situation: What financial assets (deposits, investments) and liabilities (debt, mortgage) you have and the sources and amount of your income. We will consider the overall value of your net financial assets (assets minus liabilities) as part of our approach.
- Investment knowledge: Whether you consider yourself, or we understand you to be, a novice investor, an investor with some knowledge, or an investor who understands some of the new, more complex financial products.
- Investment needs and objectives: What we discuss are your specific financial needs and goals. This will help us determine how to balance the desire to keep your money safe (not lose principal), earn income, and increase your capital through growth in the market value of your holdings/account(s).
- Time horizon: When you expect to need your financial assets, for example, to buy a house, pay for education or enter retirement. In retirement, this may also include consideration of tax requirements to withdraw minimum amounts.
- Risk profile: Will be based on both your risk tolerance, including whether you feel comfortable with the possibility of losing money in some years (even if you have many years to earn and save), and your risk capacity, which is your ability to sustain a loss.
- Investment portfolio composition and risk level: How the purchase or sale of particular securities affects holdings in your overall account(s) in terms of allocation of holdings between debt, equity and other classes, and the riskiness of the assets held.
5. Conflicts of Interest
Under Canadian securities laws, we are required to identify all material conflicts of interest between TriCert (and all individuals acting on our behalf) and you and resolve them in your best interests. If a material conflict of interest cannot be resolved in your best interests, it will be avoided. We have developed policies and procedures to ensure all such material conflicts of interest are effectively managed or avoided.
A conflict of interest includes any circumstance where:
- the interests of different parties involved, for example, you and TriCert, are inconsistent or divergent;
- TriCert or an individual representing TriCert may be influenced to put their interests ahead of yours, or benefits (monetary or non-monetary) or potential detriments which may compromise the trust that you reasonably have in us.
A conflict of interest will be considered material if, based on the circumstances, the conflict could reasonably be expected to affect the decisions you make and/or the recommendations or decisions we make on your behalf.
We are also required to provide you with information about any material conflict of interest about which a reasonable client would expect to be informed. That information can be found in our Conflict of Interest Client Disclosure, which is provided to you upon opening account(s), and any time it is updated to include a conflict that has not already been disclosed to you.
6. Investments in Related Issuers
Under Canadian securities law, TriCert is required to provide you with notice and obtain your consent before knowingly allowing your account(s) to purchase a security of an issuer that is related or connected to TriCert. As stated above, the TriCert Funds are issuers that are related or connected to TriCert. TriCert is the manager of the TriCert Funds, TriCert exercises control of the voting securities of the TriCert Funds, and TriCert has a business relationship with the TriCert Funds that, in connection with a distribution of securities of the TriCert Funds, may lead a reasonable prospective purchaser to question if TriCert and the TriCert Funds are independent of each other.
Further, a responsible person of TriCert or an associate of a responsible person of TriCert may at any given time be directly related or connected to the TriCert Funds, such as by acting as a partner, trustee, officer or director of a TriCert Fund or the general partner of a TriCert Fund that is structured as a limited partnership. For this purpose, a “responsible person” of TriCert includes:
(a) TriCert;
(b) a director or officer of TriCert;
(c) each of the following persons who exercises discretionary authority over or approves discretionary orders for, or otherwise has access to or participates in formulating, an investment decision made on behalf of a client of TriCert or advice to be given to a client of TriCert:
(i) an employee or agent of TriCert;
(ii) an affiliate of TriCert; and
(iii) a partner, director, officer, employee, or agent of an affiliate of TriCert.
7. Custodial Services
Client Accounts
In the purchase and sale of securities for our clients, TriCert utilizes the custodial services of National Bank Independent Network or Fidelity Clearing Canada ULC (“the Custodian”). TriCert does not hold physical custody of your assets or account(s).
Under this arrangement, National Bank Independent Network or Fidelity Clearing Corporation serves as custodian and correspondent broker for your account holdings and is responsible for trade settlement, record keeping and tax reporting. The Custodian is directly responsible to you for the performance of these services. TriCert has discretionary trading authority over any client assets held at the Custodian but is not authorized to transfer securities or cash into or out of client accounts held at the Custodian.
To facilitate the above arrangement, TriCert has entered into a services agreement with the Custodian, which sets out each party’s respective roles as described above. It further sets out that TriCert will collect certain documentation on behalf of the Custodian and that the Custodian will obtain TriCert’s consent with respect to any instructions it receives on the account(s).
The Custodian is an independent firm and is required to segregate client assets from its own assets and is subject to regulatory oversight, minimum capital, and insurance requirements. The Custodian may hold securities on behalf of the client in its name, as nominee of the client.
The Custodian will confirm to us each trade that we direct on behalf of your account(s), and we reconcile our trading records against theirs daily. We will have electronic access to your account(s) for the purpose of trading under your Investment Management Agreement. Our authority is limited to viewing and trading. We are not authorized to debit the account(s) other than with respect to our management fees.
Our arrangement with the Custodian is intended to enhance the protection of your assets since the Custodian is a qualified custodian that is functionally independent from us. We have reviewed the Custodian’s reputation, financial stability, relevant internal controls, and ability to deliver custodial services and have concluded that the Custodian’s system of controls and supervision is sufficient to manage risks of loss to client assets in accordance with prudent business practice.
Further, your account(s) at the Custodian is covered by the Canadian Investor Protection Fund (CIPF) and may be covered under other insurance protections that the Custodian makes available to its clients. Please contact your appointed Custodian for a description of these coverages or protections.
However, our arrangement with the Custodian is also subject to certain risks. The risks associated with assets being held by the Custodian are as follows, subject to the risk of certain losses; (i) if the Custodian becomes bankrupt or insolvent; (ii) if there is a breakdown in the Custodian’s information technology systems; or (iii) due to the fraud, willful or reckless misconduct, negligence, or error by the Custodian or its personnel.
To make changes to your Custodian account information, you will need to complete and sign account information change forms, which are available from TriCert or your local financial planner.
TriCert Funds
As the investment fund manager of the TriCert Funds, TriCert has appointed a qualified Canadian custodian to hold the assets of the TriCert Funds. The assets are held in designated trust accounts with National Bank Independent Network, a Canadian “qualified custodian” as defined in National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations. National Bank Independent Network satisfies the requirements of a “qualified custodian” because National Bank Independent Network is not an affiliate of TriCert.
8. Liquidity and Redemptions
TriCert will select securities and seek to diversify your account(s) to ensure your portfolios are in line with the investment objectives and risk profile set out by your IPS. TriCert intends to primarily invest in liquid investments on your behalf when constructing your portfolio. Securities are typically considered liquid if they can be sold from your account(s) in a short period of time (i.e. two business days), which will allow us to respond quickly to market conditions on your behalf. Examples of liquid securities include units of mutual funds and exchange-traded funds, and shares of public companies that trade on major exchanges like the Toronto Stock Exchange (TSX).
In order to provide a variety of options and optimize your asset mix in accordance with your IPS, your portfolio may include investments with limited liquidity. Examples of less liquid investments that may be purchased for your account(s) include some types of investment funds that are not mutual funds, including the TriCert Funds, and certain kinds of alternative and debt investments. These investments may not be considered liquid because there is no readily available market for that type of security, or because there are restrictions on trading or redemption such as a minimum hold period. In order to dispose of this type of investment, you may have to wait to sell or redeem the security, pay a penalty, or accept a lower price than would otherwise be available. Although there may be advantages to holding fewer liquid investments, they are generally considered higher risk. If your financial circumstances change, or for whatever reason you wish to withdraw funds from your account(s), TriCert may not be able to liquidate these investments in a timely manner.
The TriCert Funds may restrict an investor’s ability to resell or transfer its units of the fund. A redemption of units of the TriCert Funds requires a notice period of five (5) days and may be subject to restrictions in certain cases. Proceeds of such redemptions will be delivered as of a date that is not later than thirty (30) days after a duly completed notice of redemption is received by TriCert. For certain large redemptions that result in significant costs for the TriCert Funds (other than for redemptions initiated by TriCert), in order to protect other investors in the funds from being impacted by such costs, TriCert may charge a fee to the redeeming investor in accordance with the Fund’s Term Sheet. Redemptions of units of the TriCert Funds may be further restricted or, in extraordinary circumstances, suspended.
9. Risks You Need to Consider
The performance of your account(s) will be dependent on market fluctuations and other conditions that are both unpredictable and beyond the control of TriCert. Returns on your account(s) cannot be guaranteed.
The following is a summary of some of the risks of investing that you should consider. Please note that this list is not exhaustive and has been provided to give you an indication of the factors that can affect the value of your account(s).
- Market risk is the impact of a decline in the overall markets (i.e., Bond, Preferred Share, Equity ) on the value of your account(s).
- Concentration risk is the risk of exposure to a decline in a particular market or industry due to a lack of diversification in a portfolio. Account(s) that are overly exposed to a small number of securities or are dependent on the performance of a certain type of security or industry are generally more sensitive to changes in the market.
- Interest rate risk is the impact of a change in the level of interest rates on the value of your portfolio of securities. As interest rates rise, bond prices may fall. As interest rates fall, preferred shares may decrease in value. Equities are also sensitive to this risk, to the extent that they may affect demand for the firm’s goods or services or affect operating and financing costs.
- Inflation risk is the risk of a decline in the purchasing power of your savings due to a general rise in prices.
- Credit risk is the risk of a decline in the value of securities held in your portfolio because of a decline in the perceived creditworthiness of an issuer. In the worst-case scenario, one could lose most or all of their investments in an issuer if the issuer is unable to repay a debt obligation, and there are insufficient assets to pay off the debt. Credit risk may be mitigated by investing in securities that are considered investment grade by credit rating agencies.
- Currency risk is the risk of a decline in the value of securities held in a foreign currency due to an appreciation in the value of the Canadian dollar. It also addresses the risk of a decline in the profits of a Canadian issuer due to fluctuations in the value of currencies in which the issuer transacts with customers or supplies, or currencies in which the issuer holds foreign assets.
- Equity risk is the general risk of investing in equity markets. These markets will fluctuate based on a variety of factors, including general economic and market conditions, interest rates, political developments, investor sentiment, and changes within the company that issues the particular security.
- Capitalization risk is the impact of an investment in a smaller company, which may have limited resources to withstand unfavourable economic and market conditions as compared to larger companies.
- Foreign investment risk is the risk that investment in a country other than Canada may result in exposure to geopolitical and other risks that are specific to that country.
- Developing market investment risk is the exposure to risks that are unique to developing markets, including poor market liquidity and transparency, volatile growth, and political risk.
- Liquidity risk is the inability to easily sell a security at a reasonable price. Liquidity changes over time and securities may become more illiquid during market declines. Other securities may be subject to restrictions on sale.
- Legal, tax and regulatory risks are the impacts that unfavourable changes to laws and regulations, especially those relating to securities and tax practices, may have on the value of your portfolio. There can be no guarantee that a future change or interpretation will not negatively impact your portfolio.
- Cybersecurity risk is the risk of loss due to a targeted attack or unintentional event that compromises a firm’s technology, which may result in the loss of sensitive information or compromise a firm’s ability to operate, among other consequences.
Clients that hold investment funds in their account(s), including TriCert Funds, will be proportionately exposed to the risks associated with the fund(s). See the prospectus or other offering materials for the fund(s) for details of such risks.
10. Proxy Voting
As required, TriCert will ensure that all proxies are voted in accordance with any instructions provided by you. If you do not provide instructions, TriCert will exercise voting rights of your investments on your behalf. TriCert has the fiduciary obligation to ensure that the long-term economic best interests of its clients are the key consideration when voting proxies of portfolio companies.
As a general rule, TriCert shall vote against any actions that would:
- reduce the rights or options of shareholders;
- reduce shareholder influence over the board of directors and management;
- reduce the alignment of interests between management and shareholders; or
- reduce the value of shareholders’ investments.
At the same time, since we follow an investment discipline that includes investing in companies that are believed to have strong management teams, TriCert’s Portfolio Managers will generally support the management of issuers in which they invest and will accord proper weight to the positions of a company’s board of directors. Therefore, in most circumstances, votes will be cast in accordance with the recommendations of the company’s board of directors.
TriCert’s Portfolio Managers will take into consideration all relevant facts and circumstances (including country specific considerations) and retain the right to vote proxies as deemed appropriate.
Should you wish to discuss voting rights on your investments, please contact your TriCert Portfolio Manager.
11. Insider Trading
To the extent that you are or may become an “insider” of a reporting issuer in Canada, we request that you notify us of this fact at account opening and provide us with notice if this status changes in any manner. We will not be responsible for filing your insider trading reports with the provincial securities regulators. The TriCert Funds may invest in an issuer of which you or another TriCert client is an insider.
With regards to those assets over which we have discretion, we will monitor your positions in compliance with insider trading and take-over bid thresholds by aggregating the information provided by you with information about the assets managed by us from time to time and will inform you if such thresholds are breached.
12. Borrowing Money to Finance an Investment
We do not lend money, extend credit, or provide margin to our clients. It is against our firm policy to recommend to you that you use borrowed money to finance any part of a purchase of a security. However, if you choose to do so, please be aware that using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines.
13. Review of Investment Performance and Account Reporting
TriCert will periodically review the investment performance of your account(s) with you. In addition to the monthly statements you receive from the Custodian of your account(s) (i.e., National Bank Independent Network or Fidelity Clearing Canada ULC), we will send you quarterly account statements that will include details of the transactions in your account(s) during the quarter, the names and market values of each of your securities held at the end of the quarter and rate of return performance results. Furthermore, you will receive a performance report and a charges and compensation report annually, depending on the activity in your account(s).
As we have discretionary authority over your account(s), TriCert will not provide you with separate trade confirmations. You may discuss your account’s investment performance with your TriCert Portfolio Manager by contacting them directly.
14. Electronic Delivery of Documents
By providing your consent to the electronic delivery of documents, you agree to the following documents being delivered through the TriCert Client Portal: TriCert Quarterly Statements, Annual Investment Performance and Fees Report, disclosures as required by Canadian securities law, communications about these terms and conditions (including changes and confirmation of consent), and any other confirmation, notice or information relating to your account(s) that TriCert is required by law or otherwise to provide to you in writing.
When we provide a document electronically, including account statements, we will do so by making it available to you through the TriCert Client Portal. We may send an email notification to you when a new document is available. You may access account statements for seven (7) years after they are delivered to the TriCert Client Portal. Other documents or information delivered to you electronically will be available for one year. You are responsible for printing or downloading a copy of any documents delivered to you electronically for your records.
You agree to access the TriCert Client Portal at least quarterly to review documents. Please notify us as soon as possible of any discrepancies you notice. If you are unable to access the TriCert Client Portal for any reason, you should revoke your consent as described below.
We may provide you documents by paper delivery if we are unable to provide electronic delivery or if we otherwise consider it appropriate. Any paper delivery will be provided to you at the most current mailing address that we have on file.
You may revoke your consent to electronic delivery of documents at any time by contacting TriCert. We will send you a confirmation that we have received your revocation. It may take up to 10 business days for your revocation to take effect. If a statement, notice, or communication is being issued by us less than 10 business days after we receive your revocation, you may still receive an electronic statement, notice or communication.
15. Fees and Costs of Operating the Account(s)
TriCert charges a standard quarterly management fee based on a percentage of your total assets under management as described more fully in your Investment Management Agreement with TriCert. TriCert does not require a minimum account size for your account(s). Fees may be negotiated from TriCert’s standard fee schedule.
In addition, the Custodian of your account(s) charges certain fees, including commissions on the purchase or sale of securities, administration fees for RRSP, RRIF and “Locked-In” accounts and other fees relating to the operation of the account(s).
Such fees reduce the investment returns in your account(s) proportionate to the fees charged to your account(s). Just like your returns on investment may compound over time, fees and expenses charged to your account(s) may have a compounding effect on your overall returns over time because you will not have the opportunity to earn income on the amounts deducted, meaning that the effect of fees is magnified over time.
TriCert’s standard fee schedule and fee schedules for your Custodian are provided to you upon account opening and available upon request from TriCert. You will be provided at least 60 days’ written notice before any new or increased operating charge is applied to your account(s).
TriCert does not receive any other payment or benefit from any other person or company in connection with the purchase or ownership of a security held in your account(s), other than securities of the TriCert Funds.
16. Expenses of Certain Investments
In addition to the fees described above, if we invest your assets in investment funds, including exchange-traded funds and the TriCert Funds, certain management fees, operating expenses and other costs will apply proportionately to your interest in the fund. Management fees are normally paid to the manager of the fund for its role in managing the assets and otherwise overseeing the investments of the fund. Operating expenses include things like legal, audit, brokerage and administrative costs, and other costs that may include sales taxes and other miscellaneous items. These fees, expenses and costs are paid by the investment fund as opposed to being paid by you directly, but you still indirectly bear a portion of these fees and expenses because they reduce the net asset value of the fund (and therefore your investment), and their effects will be compounded over time.
The amount of the charges will be disclosed in the prospectus or other offering document or report for the fund, and you can also find the information in the interim and annual financial statements of a fund, which are available upon request from us for the TriCert Funds.
TriCert will not charge or receive sales commissions for purchases of the TriCert Funds by our clients, but TriCert will benefit from investing your assets in TriCert Funds and continuing to hold securities of the TriCert Funds in your account(s) because the amount of management fees payable to TriCert (or an affiliate of TriCert) will increase as a result. If your assets are invested in the TriCert Funds, we will ensure that there is no duplication of fees charged to you for the same services. Please refer to the “Conflicts of Interest” section and our Conflict of Interest Client Disclosure for more information on how we manage the conflicts of interest associated with trading in proprietary products. TriCert does not receive any other payment or benefit from any other person or company that is not a TriCert client in connection with the purchase or ownership of securities of a TriCert Fund held in your account(s).
17. Instructions to TriCert
From time to time, you may need to provide instructions to TriCert regarding your investment account(s). All instructions can be provided directly to TriCert through the following methods:
| Telephone | 519-291-2817 |
| Toll Free | 1-877-291-3040 |
| Facsimile | 1-519-291-1240 |
| Mail/In Person | 1A-510 Weber Street North Waterloo, ON N2L 4E9 |
Please direct your instructions, using one of the methods above, to the attention of your TriCert Portfolio Manager. If the instructions are merely administrative, you may instead address them to our office generally. Administrative instructions include:
- Deposits – Instruction specifically relating to a deposit of your monies into your account(s) (e.g., specifying the account to which the deposit should be made).
- Withdrawals – Instructions related to withdrawing amounts from your account(s).
- Transfers Between Accounts – Provide instructions for the transfer of funds between accounts in your name (e.g., making an RRSP contribution by transferring funds from a non-registered account to an RRSP account).
It is a contravention of Canadian securities laws for any company or person that is not registered with the applicable securities commissions in Canada to trade in, or provide specific advice on, securities if it is not duly registered under applicable securities legislation to so trade or advise.
TriCert cannot receive any authorization or direction from any person other than you regarding the following:
- Completion of your account opening documents, including Know-Your-Client (“KYC”) information, and assessing the suitability of any investments for your portfolio, and
- Any instructions that result in client account changes (e.g., changing a bank account number for EFT payments).
TriCert’s Custodian accepts changes to account information only on receipt of the appropriate form signed by you alone.
TriCert cannot accept or act on any instructions from your financial planner as it relates to any advice on any specific investment tailored to your needs and circumstances.
18. Fair Allocation of Investment Opportunities
TriCert has a fiduciary duty to treat all clients in a fair and equitable manner, and we do this by (a) ensuring a fair allocation of investment opportunities among our clients and (b) seeking the best outcomes possible on our equity and bond trades. See below for a description of the policies and procedures employed by TriCert to ensure fairness in allocating investment opportunities among our clients, including indirectly by allocating opportunities to the TriCert Funds.
TriCert’s Customized Approach to the Fair Allocation of Investment Opportunities – TriCert provides discretionary portfolio management to individual and corporate accounts. TriCert offers a series of portfolios, the TriCert Funds, and customized portfolios designed with the account holder in mind, and as a result, TriCert clients may hold different securities due to specific client objectives and constraints and security prices at the time of portfolio implementation. In addition, each client has a specific IPS, which may consist of different asset class weighting. Despite the degree of customization between accounts, which will vary due to the approach to investment for each particular client, there may be circumstances where TriCert must allocate investment opportunities between clients and the TriCert Funds. TriCert will ensure that, when the requirement to allocate investment opportunities among portfolios does arise, the fair allocation of investment opportunities occurs. For example, an attractive investment opportunity may have a limited number of securities available that is insufficient to meet demand, in which case TriCert would allocate the securities available among suitable client accounts and the TriCert Funds on a pro rata basis.
- Method Used to Allocate Block Trades – In the purchase of a block of securities or Initial Public Offering (IPO), TriCert determines the suitability of the security for a client’s customized portfolio and/or the TriCert Funds and purchases a predetermined number of securities via a block trade. The block is purchased at one price and the Custodian(s) allocates the securities to the appropriate portfolios. If multiple prices are paid to fill the block, an average price is determined and paid by the participating clients and the TriCert Funds. Commission costs are built into the price of the bonds and, therefore, effectively are split among the receiving portfolios based on dollar-weighted allocation. For equities, the Custodian’s discount brokerage commission fee is applied to each transaction.
In the sale of a block of securities, TriCert determines the total size of the block based on the existing holders of that security, including the TriCert Funds. The block is sold at one price, and the Custodian allocates the proceeds to the appropriate portfolios. If multiple prices are received to fill the block, an average price is determined, and the proceeds are allocated appropriately. Commission costs are built into the price of the bonds and are, therefore, split among the receiving portfolios based on dollar-weighted allocation. For equities, the Custodian’s discount brokerage commission fee is applied to each transaction.
- Method Used to Allocate Block Partial Fills – Should a block be purchased or sold and only partially filled, the allocation is done on a pro-rata basis in order to ensure an average allocation and average commission rate per share for the appropriate clients and/or the TriCert Funds. This also applies to partial IPO fills.
- Best Execution – All equity orders for your account(s) will be executed through the Correspondent Broker/Custodian, where your account(s) is held. This is done for ease of settlement and to avoid transfer fees that would otherwise be charged when orders are executed elsewhere.
Other than client investments in the TriCert Funds, the portfolios will only invest in equities that trade in a deep and liquid market. Hence, executed prices are not expected to vary significantly between brokers. In addition, the Correspondent Broker/ Custodian will be obligated to use multiple trading platforms and sources to ensure that the client or TriCert Fund, as applicable, is receiving the most reasonable outcomes.
Unlike large cap equity securities, the execution price for debt securities can vary between brokers based on the Dealer’s bond inventory and the spread they charge for orders. Bond dealers will charge a larger spread if the order is small or the client trades infrequently. As a result, TriCert will aggregate bond purchases and sells for your account(s) with those of other accounts and the TriCert Funds and execute these trades in bulk. To ensure best pricing, TriCert will obtain quotes from multiple bond brokers.
TriCert does not presently enter into soft dollar arrangements with executing brokers. The firm will develop appropriate policies and procedures regarding this area if and when it decides to engage in such activity.
Preferred shares typically trade as an illiquid market due to their size and volumes. As a result, TriCert aggregates purchases and sells and attempts to execute these in bulk. In the event of a partial fill on an order, clients will retain their position in the sell or purchase cue for best execution.
19. Use of Benchmarks
Certain materials that you receive from TriCert, including account statements, marketing materials and offering documents for the TriCert Funds, will include performance information and may also show the performance of a comparative benchmark. Benchmark returns provide readers with a basis for understanding a portfolio’s historical performance in relation to comparable investments or the market segment in which the portfolio is invested. In certain cases, the performance of a portfolio is compared to the returns of a general index such as the TSX/S&P, S&P500, DEX and EAFE indexes. In the case of the TriCert Funds, we may choose one or more benchmarks that may be custom benchmarks that are blends of other benchmarks that correspond in constituent securities and proportions to the securities held by the TriCert Funds. These index returns are shown because they are widely quoted and are provided for general information purposes only. Your portfolio and the portfolios of the TriCert Funds are not constructed based on benchmarks or meant to track benchmarks.
It is important to note that the performance of the portfolio may vary materially from that of the benchmark, as the securities held by the portfolio will vary from the benchmark. A portfolio’s past performance relative to a benchmark may not be reflective of the future performance.
20. Complaint Resolution Process
We document and, in a manner that a reasonable investor would consider fair and effective, respond to each complaint made to us about any service offered by us or a representative of our firm. You should review your account statement carefully and immediately after receipt. Upon making a complaint to TriCert, you will receive a written acknowledgement that contains the information below, and you will be promptly notified of any decision made about your complaint in writing at any stage of the process described below.
While we strive to provide excellent service to all clients, if you believe there is a concern with your account(s), or you have any other complaint about trading or advising activity by TriCert, your Portfolio Manager, or any other representative of TriCert, you can take the following actions to obtain resolution:
| Step 1 | Contact the Wealth Operations Team at TriCert by phone at 519-291-2817 or 1-877-291-3040, or email at [email protected], who will help to resolve the issue. |
| Step 2 | If the Wealth Operations Team cannot resolve the issue, you can contact (or the Wealth Operations Team will forward you to) the Portfolio Manager assigned to your account(s). |
| Step 3 | If the Portfolio Manager cannot resolve the problem, you can contact (or will be forwarded to) TriCert’s Chief Compliance Officer. |
| Step 4 | If TriCert’s Chief Compliance Officer is not able to resolve the issue, you can contact (or will be forwarded to) TriCert’s President. |
| Step 5 |
If you are not satisfied with the outcome of our investigation or we have not responded to you on a timely basis (i.e., within 90 days), you can contact the Ombudsman for Banking and Investment Services (OBSI). OBSI is a free, independent service for resolving banking services and investment disputes between participating firms and their clients. Ombudsman for Banking Services and Investments (OBSI) |
21. Trusted Contact Persons (TCP)
TriCert asks you to provide contact information for a Trusted Contact Person (TCP). If you choose to provide this information to TriCert, you give us permission to contact the TCP, at our discretion, in order for the TCP to provide or confirm information, such as:
- whether anyone may be financially exploiting you;
- your state of mind if we have reasonable concerns about your ability to make decisions involving financial matters;
- your current contact information if we are unsuccessful in contacting you after repeated attempts and where failure to contact you would be unusual; or
- to confirm the name and contact information of a legal guardian, executor, trustee, an attorney under a Power of Attorney (POA) or any other legal representative.
Please advise your TriCert Portfolio Manager immediately if there is a change to any TCP-related information you provide. TriCert takes reasonable steps to keep this information current and may ask you about it from time to time.
22. Temporary Hold
Illness, impairment, disability, or aging can make a person vulnerable to financial exploitation or compromise their mental capacity. If we suspect that you are being financially exploited or we have concerns about your mental capacity to make decisions involving financial matters, we may place a temporary hold on the purchase or sale of a security or on the withdrawal or transfer of cash or securities from your account(s).
If we place a temporary hold on your account(s), we will notify you and provide our reasons for doing so as soon as possible after placing the hold. Within the first 30 days after placing the temporary hold, and within every subsequent 30 days until the temporary hold is revoked, we will provide you with notice of our decision to continue the hold and the reasons for that decision.
23. Privacy Policy
Read TriCert’s Privacy Policy here.