NPMC uses two approaches to building portfolios: the Bundled Approach and the Unbundled Approach.

  1. The Bundled Approach: The bundled approach refers to clients who are 100% invested into the NFC Tactical Asset Allocation Pool. This approach is typically used for clients with a balanced investment mandate and who have less than $250,000 to invest. All fees related to the management of the portfolio are bundled within the management fees charged to the pool. The total portfolio management fees and expenses for the NFC Tactical Asset Allocation Pool are capped at 1.50% per year. The portfolio management fees and expenses are drawn directly from the pool on a monthly basis and so these amounts are not seen directly by you. In other words, all of the management fees and expenses are bundled within the pool and the net rate of return provided to you is always after these fees have been drawn. More information on the NFC Tactical Asset Allocation Pool is provided below.
  1. The Unbundled Approach: The unbundled approach is made available to clients with either a Conservative, Balanced or Growth mandate and with typically more than $250,000 to invest. The NFC Tactical Asset Allocation Pool remains a core component of the unbundled approach, where typically 60% of the total portfolio value remains invested within the pool. However, as part of the unbundled approach the management fees and expenses are capped at 0.85% (Instead of the 1.50% mentioned in the Bundled Approach). The 40% portion of the portfolio is then tilted to the unique circumstances of the client, which includes but is not limited to, the investment mandate, the need for yield vs. growth and / or tax and retirement income considerations. Additional management fees are charged to the client account on the unbundled portfolios. Yet, when all of the fees are added together, they are typically less than the fees for the same client invested within the bundled approach. The fee schedule for the unbundled approach typically declines over time, as a percent of assets, as your portfolio rises in value. We refer to this as the unbundled approach for three reasons:
    • The portfolio is customized to your unique circumstances.
    • You can see all fees drawn from the account.
    • The portfolio contains a combination of the NFC Tactical Asset Allocation Pool, exchange traded funds and individual securities.

What Is The NFC Tactical Asset Allocation Pool?

The NFC Tactical Asset Allocation Pool is a private investment pool available only to clients of Nelson Portfolio Management Corp. (NPMC). The pool is managed with a balanced mandate, but has considerable flexibility to be more aggressive or conservative, as shown in the table below.

NFC Tactical Asset Allocation Pool Asset Mix Ranges
Most Conservative Neutral Mix Most Agressive
Defensive 75% 50% 25%
Growth 25% 50% 75%

The pool is able to invest globally in small, medium or large sized companies. However, the mandate of the pool is to be a moderate risk, balanced investment which means that in most situations it will be invested close to the Neutral Mix.

The NFC Tactical Asset Allocation Pool is a related or connected issuer of Nelson Portfolio Management Corp.

 

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