The Prosperity Update – December 2019
What You Own and Why You Own It
Primarily, you own equities. What does that mean? It means you own a little piece of a whole lot of businesses and, as an owner, you share in the results of the business.
Professional Portfolio Management with Local Accessibility
I believe that owning profitable businesses is the most certain way to build wealth. But we are not complacent. We have been kicking the tires on a number of investment ideas to see if they have potential for inclusion in the Prosperity Fund, including callable notes, global real estate funds, and REITs. These are ideas that I don’t naturally gravitate to, but we are leaving no stone unturned.
But primarily you own equities. And equities fluctuate. In a bear market it is understood that prices will decline. Under these circumstances the Prosperity Fund could decrease in value.
When the bear market does happen – we will NOT receive advance notification, by the way – investments, such as the Prosperity Fund, may come down in price. This could present a good opportunity to buy quality investments at discounted prices. Obviously, this needs to be consistent with your investment objectives, but given that… It’s a Black Friday sale.
Buying things on sale is the way we look at buying hockey sticks, and it’s the way we should look at high quality investments.
Current Holdings, as of Nov. 30, 2019
|Cash and Fixed Income||17.9%|
|Daily Interest Savings||10.4%|
|Vanguard Canadian Aggregate Bond ETF||5.9%|
|Value Partners Income Pool||18.1%|
|Antares Total Equity||12.6%|
|Value Partners Canadian Equity||18.8%|
|Vanguard FTSE Developed All Cap ex North America ETF||12.2%|
|Vanguard US Total Market Return ETF||12.8%|
|Berkshire Hathaway B shares||1.7%|
|Canadian Natural Resources Ltd.||3.0%|
|Suncor Energy Inc.||2.9%|
What Makes the Prosperity Fund Special
The Prosperity Fund is a collection of our best ideas at our best prices, with client friendly convenience.
The Prosperity Fund has allocations to investment funds with minimum investments of as much as $250,000, giving investors access to these products at a reduced entry level.
In the last month we increased our position in the VPI Income Pool. This is a balanced investment pool with a flexible mandate that allows it to take advantage of market conditions, with a current yield of 4.1%. We have negotiated special pricing with Value Partners, and receive a fee rebate to the Prosperity Fund each month.
Our standard fee schedule for managed accounts offers tiered pricing. As your assets grow, the percentage declines.
|Up to $100,000||1.50%|
|$100,001 to $250,000||1.00%|
|$250,000 to $500,000||0.90%|
|$500,000 to $1M||0.80%|
|$1M to $2,5M||0.75%|
As with all our managed accounts, the Prosperity Fund offers No Hassle Pricing. This means that I will pay the quarterly account fees on managed accounts over $50,000. On your account statement you will notice the corresponding debits and credits in December.
Recommendations are Welcome!
If you know of anyone whom we should talk to about the Prosperity Fund, or any other financial matter, please feel free to pass along my name, or direct them to the website, www.bradbrainfinancial.com.
Following a value style of investing, the Prosperity Fund will be a collection of our best ideas, with a Target Asset Allocation of 85% Equities and 15% Cash and Fixed Income.
The Prosperity Fund is appropriate for patient investors looking to grow their money over the long term. It is not appropriate for people looking to speculate, for time frames less than five years, or for people who are not
comfortable with market variability. The Prosperity Fund requires a minimum purchase of $50,000.
Aligned Capital Partners Inc. is regulated by the Investment Industry Regulatory Organization of Canada (www.iiroc.ca) and a Member of the Canadian Investor Protection Fund (www.cipf.ca).
Please contact Brad brain or visit http://bradbrainfinancial.com/investments-acpi/our-investments/ for additional information about the Prosperity Fund. Important information is contained in the offering memorandum and should be read carefully before investing. The offering memorandum can be found here http://bradbrainfinancial.com/investments-acpi/wpcontent/uploads/sites/2/2019/06/05.21.2019_Prosperity_Fund_OM_FINAL.pdf