Heward works with each client to best understand individual investment expectations and relative risk tolerance. On this basis, and in consideration of assets under management, the firm will provide the necessary guidance to ensure an optimal fit between each client and specific financial service offerings.
Heward delegates the safekeeping and administration of client assets to its primary custodians, RBC Investor and Treasury Services and National Bank Independent Network (NBIN). These custodial houses oversee the collection of investment income and the safe custody of securities. They also provide monthly investment statements and online access to client portfolios (NBIN only).
The firm provides the following products and services to its clients:
- Custom Portfolios (Minimum investment $1,000,000)
- Heward Pooled Funds (Minimum investment $150,000)
- Managed Mandates
- Sub-Advisory Mandates
Custom Portfolios
Our custom portfolios (Segregated Account Mandates) are signed agreements between the firm and our clients. Investment decisions are governed by client objectives and constraints as documented in the Investment Policy Statement (IPS).
Segregated Accounts are generally managed individually or by Family Group which as a whole corresponds to a specific mandate. By way of example, an RRSP, TFSA, RESP, holding companies, and/or regular accounts of a group of family members in both Canadian and US dollars are managed under one mandate as outlined in their IPS. The minimum investment is $1,000,000. We work with clients to determine which segregated account mandates best correspond to their needs. Portfolios can be customized to accommodate the most unique circumstances. The firm manages various Segregated Account Mandates. The following five mandates represent the majority of the firm’s mandates and are reported monthly and quarterly as part of performance composites:
GLOBAL EQUITY
The Global Equity Mandate is designed for clients with a higher level of risk tolerance than all other firm mandates. The mandate focuses exclusively on long-term growth. Clients seek the capital appreciation and dividend income provided under this mandate.
GLOBAL BALANCED GROWTH
The Global Balanced Growth Mandate is designed for clients with a higher level of risk tolerance than typical Balanced Mandates. Accordingly, it is skewed more towards long-term growth than capital preservation and in turn allocates a larger portion of capital to equities.
GLOBAL BALANCED
The Global Balanced Mandate strikes a balance between capital preservation and long-term growth by targeting equal weightings to equities and fixed income securities. The objective is capital preservation and long-term growth.
GLOBAL CONSERVATIVE BALANCED
The Global Conservative Balanced Mandate is designed for clients with a lower level of risk tolerance than typical Balanced Mandates. Accordingly, it is skewed more towards capital preservation than long-term growth and in turn allocates a larger portion of capital to fixed income securities.
FIXED INCOME
The Fixed Income Mandate is designed for clients with a lower level of risk tolerance than all other firm mandates. The mandate focuses exclusively on capital preservation and forgoes long-term growth. Clients seek the steady stream of interest income and/or dividends (preferred shares) provided under this mandate. The fixed income strategy is adjusted according to long-term interest rate movements and encompasses bonds across multiple durations and preferred shares.
Pooled Funds
Heward Pooled Funds provide clients with the opportunity to invest in a more cost-efficient manner by lowering trading costs and requiring a significantly lower minimum investment than segregated account clients. Funds are open to clients with a minimum investment of $150,000 (unless investors meet criteria for “accredited investors”).
The firm currently manages four Pooled Funds:
HEWARD INCOME FUND
HEWARD CANADIAN DIVIDEND GROWTH FUND
HEWARD EQUITY FUND
HEWARD GLOBAL LEADERS FUND
HEWARD INCOME FUND
The Heward Income Fund seeks to generate long term capital appreciation and investment income to provide an attractive total investment return. The fund invests in a diversified basket of debt securities, preferred shares, income trusts, real estate investment trusts, hybrid products and common shares.
Objectives
- Return: Capital appreciation and investment income
- Risk: average
Benchmark
- 10% FTSE TMX Canada 91 Day TBill Index, 90% FTSE-TMX Canada Universe Bond Index.
HEWARD CANADIAN DIVIDEND GROWTH FUND
Established in 2009, the Heward Canadian Dividend Growth Fund is a Canadian equity fund that focuses on companies that consistently grow their dividends over the long-term. The fund is designed with the dual objective of achieving income through dividends and long-term growth at lower than market risk.
Objectives
- Return: income, long-term growth and low volatility
- Risk: below average
Benchmark
- S&P TSX Total Return Index
HEWARD EQUITY FUND
The Heward Equity Fund seeks to achieve a superior long-term rate of return and safety of capital. The strategy is diversified across various sectors and market capitalizations in the global marketplace. The portfolio will be structured in accordance with the Manager’s view of the market, therefore, sector allocations may vary significantly over time.
Objectives
- Return: Long-term rate of return and safety of capital
- Risk: average
Benchmark
- 10% FTSE TMX Canada 91 Day TBill Index / 45% S&P TSX Total Return Index / 45% MSCI World Index Total Return (C$)
HEWARD GLOBAL LEADERS FUND
The Heward Global Leaders Fund seeks to generate consistent returns over the long term by identifying high-quality global businesses that are attractively priced. Companies are leaders in their respective business field, have high defendable barriers to entry, solid management, high returns on invested capital and consistent return of capital via dividends.
Objectives
- Return: Consistent long term returns
- Risk: average
Benchmark
- 80% MSCI World, 10% S&P/TSX Total Return Index, 10% 91 Day TBill
Managed Mandates
Heward Investment Management Inc. also offers discretionary investment management services to external investment managers and wealth management professionals.
These services include:
- Wrap products based on model portfolios
- Advisory-based services which may or may not include models
- Discretionary investment management services to mutual funds
External investment managers typically offer portfolio construction, implementation, performance presentation, and other services as stipulated in the signed agreement.