The purpose of this document is to provide a meaningful and plain language description of the products and services OneVest Management Inc. (“OneVest”) offers through its Discretionary Managed Account program and for the direct purchase of OneVest investment funds, the nature and manner in which accounts are operated and OneVest’s responsibilities to its clients.
Your OneVest Account is a discretionary portfolio management account which means that OneVest makes all investment decisions in your Account based upon your investment needs and objectives. For clients who invest directly in OneVest’s investment funds, OneVest has an obligation to determine the suitability of the investment for the client. OneVest has a fiduciary duty to always act in your best interests.
OneVest is registered as a Portfolio Manager in each of the provinces and territories of Canada and is registered as an Investment Fund Manager in the provinces of Alberta, Ontario, Quebec and Newfoundland and Labrador.
OneVest is registered as a Portfolio Manager to provide discretionary portfolio management services to its clients. As an Investment Fund Manager, OneVest is responsible for the day-to-day business and affairs of its investment funds, which are managed by OneVest.
Within its managed accounts, OneVest will purchase both third party investment funds and investment funds managed by OneVest. In the event that a client is invested in an investment fund managed by OneVest within a discretionary managed account, and if the client terminates their agreement with OneVest, then the client may be required to sell the investment fund and may incur losses or capital gains upon the sale of the investment fund.
For discretionary managed accounts that hold OneVest’s proprietary funds, in determining suitability we aim to consider all comparable investment products available to the client, both proprietary and non-proprietary, and will utilize the product that best meets client investment needs and objectives.
OneVest will provide full disclosure of any management fees and operating or other charges or expenses incurred within the fund prior to the utilization of the investment fund within a OneVest discretionary managed account or prior to a client making a direct subscription for units in the investment fund.
When making investment decisions, investors should consider risks such as, but not limited to, market risk, interest rate risk, inflation risk and liquidity risk. These risks may erode the principal of your investment, the income that you wish to earn on your investment and there is no guarantee that your investments will appreciate in value.
Risk tolerance is your willingness and ability to assume risk and incur fluctuations and/or losses in the value of your investments in pursuing your investment goals.
Low: Low risk investments generally have low volatility and are for investors who favour greater safety of capital and are willing to accept lower returns as a result.
Low to Medium: Low to medium risk investments generally have a low to medium volatility but a higher volatility than low risk.
Medium: Medium risk investments generally have a medium volatility and are for investors whose objectives are for moderate growth over a longer period of time.
Medium to High: Medium to high risk investments generally have medium to high volatility and are for investors that are looking for long term growth.
High: High risk investments generally have a high volatility and are for investors who are growth oriented and who favour the potential for higher long term returns and are willing to accept significant short term fluctuations in portfolio value as a result.
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 remain the same even if the value of the securities purchased declines.
A conflict of interest means that there is an influence which may affect the decision that we as your Portfolio Manager would make in our dealings with you, or conversely it may affect the decision that you, as the client, would make regarding your account with us.
In general, we deal with and manage relevant conflicts as follows:
At OneVest, we have adopted policies and procedures to assist in identifying conflicts of interest. Conflicts deemed too significant to be addressed through controls or disclosures will be avoided. If the conflict cannot be avoided, we will control the conflict with policies and processes, and where it will assist in managing the conflict, we will provide disclosure to you in order to explain how we manage the conflict in your best interests. This disclosure will assist you in helping to understand the nature of your relationship with OneVest.
Our existing or reasonably foreseeable material conflicts of interest are described below.
As part of our corporate structure, we have relationships with other companies who are considered related or connected issuers. These companies are considered related or connected to us if (i) the company is an influential securityholder of OneVest, (ii) OneVest is an influential securityholder of the company, (iii) oneVest and the company are both a related issuer of the same third-party company, (iv) the company is a related issuer to us, or (v) a director, officer or partner of the company is employed by us or by a related issuer to us. OneVest and a related or connected issuer have a vested interest in one another and it is our duty to make you aware of that relationship and address any conflicts the relationship may present.
The Manzil North American Equity Fund for which OneVest acts as investment fund manager and portfolio manager, is a non-prospectus qualified investment fund, which may be considered a “related” or “connected” issuer to OneVest.
Proprietary products are securities of an issuer if (i) the issuer of the security is a related or connected issuer of OneVest or (ii) OneVest or an affiliate of OneVest is the Investment Fund Manager or Portfolio Manager of the issuer of the security. As a result, products which OneVest manages and securities issued by OneVest or an affiliate are all proprietary products of OneVest and pose a material conflict of interest.
To address this material conflict of interest, OneVest ensures that there is no added incentive to sell proprietary products over other products. Representatives of OneVest are required to select the product that is most suitable and, in your best interest.
OneVest will always disclose the nature of the products and services offered, to ensure you are fully informed.
The Manzil North American Equity Fund is a proprietary product offered and managed by OneVest. In allocating this fund to client accounts, as is with any other fund, OneVest stands by our obligation to conduct a thorough Know-Your-Product process, and ensures that an investment in the fund is suitable and always in the best interests of the client.
All Clients with a OneVest discretionary managed account provide consent in writing for their portfolios to hold any investments that are managed by OneVest and this consent is provided in the Discretionary Management Agreement the client signs with OneVest.
For services rendered by OneVest, including management, trading, and performance reporting, OneVest charges an annual total management fee of 0.60%, calculated as a percentage of the fair value of your assets under management (“AUM”). This fee includes all custody and trade execution charges. The management fee is calculated based on your average daily account value over a month, and is withdrawn from your account on a monthly basis. You can see the AUM fees in your monthly statement, and in the annual management fee report made available in your account. Your management fee is also subject to sales taxes, which will vary depending on your province of residence. Please note that OneVest only charges management fees when your funds are invested. OneVest does not charge fees for any funds that are on hold, or for any funds held as cash when you are liquidating your account. A record of the fees charged to your account is available in your monthly statement. Please see our custodian institution, CI Investment Services' Administrative Charges schedule for a full list of other applicable account fees.
Manzil (“Murabaha Inc.”) will not collect any referral fees or other compensation from OneVest in connection with your account. Manzil does collect management fees calculated as a percentage of your AUM invested in the Manzil Mortgage Fund. Manzil also acts as consultant to the Manzil North American Equity Fund relating to compliance with Shariah requirements, and receives a fee from OneVest for this service.
Depending on your risk profile, the weighted average Management Expense Ratio (MER) of the investment funds held in the OneVest Halal Portfolio ranges from 0.50% to 0.90%. The MER represents the combined total of the management fee, operating expenses, and taxes charged to a fund during a given year expressed as a percentage of a fund's average net assets for that year. All investment funds have an MER. MER also includes any applicable sales taxes.
OneVest is committed to ensuring the security of client personal information in order to protect it from unauthorized access, collection, use, disclosure, copying, modification or disposal or similar risks. OneVest does not disclose your personal information to third parties other than:
Clients will not receive trade confirmations unless they specifically request them. If requested, they can be delivered electronically or through the mail (at additional cost) and would be done so promptly after each trade that is made.
OneVest will deliver client statements, at a minimum, on a quarterly basis. Client statements will be provided monthly when there are new transactions, when a fee is incurred or when a client requests a monthly statement. Client statements will show the account position cost and the account activity during that month.
At year end, clients will receive an annual cost disclosure report that will show the charges and other compensation, in dollars, that OneVest was paid for the products and services it provided, as well as an annual investment performance report that covers: deposits into, and withdrawals from, the client’s account; the change in value of the account; and the percentage returns for the previous year.
OneVest is required to conduct a comprehensive Know Your Client (“KYC”) process that, combined with a parallel Know Your Product (“KYP”) process, allows OneVest to conduct a thorough suitability assessment in the context of establishing a discretionary portfolio management relationship with its clients. OneVest’s obligation is that any investment action OneVest takes, recommends or decides on, for the client is suitable for the client and puts the client’s best interests first. As such, each client is required to have a Suitability Score (the “OneScore”) associated with their profile.
The scoring process is automated and is an algorithmic function that considers multiple factors to determine investment product suitability for each customer and their goals (i.e. data from both KYC and KYP).
Ongoing suitability is provided as part of the managed account services. For clients who make direct purchases of OneVest’s investment funds, the suitability determination is made at the time of purchase.
OneVest clients need to let OneVest know if there are significant changes in their circumstances. All clients must carefully review all documentation they receive from OneVest. This includes:
Optionally for every account, customers can submit the following:
While not required, these forms will be encouraged to ensure that the customer’s assets are protected. In some cases a wet signature may be required.
Any error, issue or concern relating to this documentation should be raised immediately with OneVest.
OneVest will communicate with you by electronic means via post to your online account. If you need to contact OneVest you can email OneVest directly.
Ongoing fees can reduce the value of your investment portfolio. This is particularly true over time, because not only is your investment balance reduced by the fee, but you also lose any return you would have earned on that fee. Over time, even ongoing fees that are small can have an impact on the value of your investment portfolio.
OneVest confirms that in the event that securities are purchased for the accounts of more than one client of OneVest and an insufficient number of securities are available to satisfy the purchase order, the securities available will be allocated to the extent possible pro rata to the size of your accounts, taking into consideration your IPS.
Investment performance benchmarks (indices) may be used to assess performance of a client's investment holdings. While consideration may be given to several other quantitative and qualitative factors when measuring performance, benchmark risk and return often provide a broad-based scope to gauge expected risk and return ranges of investments. Investors cannot invest in an index benchmark without incurring fees, expenses and commissions, which are not reflected in the benchmark return. Past performance is not necessarily indicative of future performance and the risk associated with a particular investment can change over time.
We have created a process for dealing with complaints that we believe is both effective and efficient. We expect every OneVest employee who receives a customer complaint to take ownership, and ensure that the complaint is resolved quickly. If you have a complaint, we encourage you to follow the complaint procedure outlined here.
OneVest Management Inc. is registered as a Portfolio Manager in each of the provinces and territories of Canada and is registered as an Investment Fund Manager in the provinces of Alberta, Ontario, Quebec and Newfoundland and Labrador. OneVest is a wholly owned subsidiary of One Wealth Technologies Inc.
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