Custody of Clients’ Assets

Our clients’ assets are held at the custodian of their choice, for example a trust company, or a discount brokerage firm; in the latter case we recommend using TD Waterhouse Canada Inc., since it has developed a complete institutional service for management firms such as ours. Préfontaine Capital has a mandate to manage clients funds in accordance with the investment policy established with each client. Cash withdrawals and inflows are made through the custodian.

Reports

Clients receive a monthly report from their custodian, which includes a positions report of all securities held at month end plus a transactions report for the period. They also receive a year-end comprehensive tax report. Préfontaine Capital sends an additional report which provides positions, transactions and performance calculations. These reports also have the benefit of offering the option to consolidate multiple portfolios of a same client or family. Préfontaine Capital works with an advanced portfolio management software. We also publish a quarterly financial letter in which we review economic and market activities, along with our firm’s quarterly transactions and activities, and our thinking on diverse financial matters of interest to our clients.

Transactions

Stocks, bonds, and money market transactions are made via institutional brokers, at institutional prices, to the benefit of our clients.

Meetings

After an initial meeting during which an evaluation of a client’s investment profile and needs are made, regular meetings are organized to review the portfolio and needs of the client, and the very personalized relationship allows the client to freely exchange at any time with his/her manager.

Costs

Préfontaine Capital receives no commission or kickback of any sort, there are no hidden costs. Our only remuneration is a professional fee based on a percentage of assets under management. This percentage is regressive, meaning the larger the assets under management the smaller the percentage. These fees are fully tax deductible for taxable accounts.