How We Do It
NPMC uses three approaches to building portfolios: the Bundled Approach and the Unbundled Strategic Approach and the Unbundled Tactical Approach. Based on your current situation, goals and preferences, we will discuss the best approach for you:
- The Bundled Approach: The bundled approach refers to clients who are 100% invested in to a combination of our unique, internally managed investment pools: The NFC Tactical Asset Allocation Pool, the BCV Fixed Income Fund, the BCV North American Equity Fund and the BCV Multi-Strategy Alternatives Fund. This approach is typically used for clients who have between $500,000 and $1 million to invest. All fees related to the management of the portfolio are bundled within the management fees charged to the pool / funds. The total portfolio management fees and expenses are capped at 1.50% per year. The portfolio management fees and expenses are drawn directly from the pool / funds 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.
- The Unbundled Strategic Approach: The Strategic Approach to portfolio construction emphasizes i) a fully invested portfolio at all times, ii) less concern about short-term market fluctuations with iii) the understanding that a concentrated portfolio of high-quality companies can outperform over the longer term. This portfolio approach typically includes individual bonds, individual dividend paying stocks, the BCV North American Equity fund and the BCV Multi-Strategy Alternatives Fund. A portion of your annual management fees may be included in one or more of these funds while the balance will be charged at the account level.
- The Unbundled Tactical Approach: The Tactical Approach to portfolio construction emphasizes i) shorter term risk management strategies (erring on the side of caution when risk levels are determined to be higher) so as to protect against larger market downturns, ii) holding more cash from time to time with iii) the understanding that at times when the portfolio is more defensive, markets can rally, allowing the portfolio to miss some upside, short term returns. This approach is typically best for clients who wish to have a more moderate risk portfolio and / or who are near or in retirement and are drawing a regular income from their portfolio. This portfolio approach typically includes individual bonds, individual dividend paying stocks, the NFC Tactical Asset Allocation Pool and the BCV North American Equity Fund. A portion of your annual management fees may be included in one or more of these funds while the balance will be charged at the account level.
The NFC Tactical Asset Allocation Pool is a related or connected issuer of Nelson Portfolio Management Corp. The BCV North American Equity Fund, the BCV Fixed Income Fund and the BCV Multi-Strategy Alternatives Fund are related or connected issuers of BCV Asset Management Inc. Nelson Portfolio Management Corp. is a wholly owned subsidiary of BCV Asset Management Inc.
