Account Size
Minimum client portfolio size: $500,000
Minimum account size: $250,000
Where the minimum portfolio size is met, but no single account meets the $250,000 minimum, those client assets are invested in Cardinal Series Units of the VPI Cardinal Pools until the account can be properly diversified.
The VPI Cardinal Pools are managed by Cardinal Capital Management, and are guided by the same investment philosophy that influences our approach to individual portfolios. Cardinal has been managing funds with
Value Partners Investments since their inception in 2005. For more information please visit their website.
Management Fees
The Cardinal fee structure helps to maximize portfolio values in two ways:
- Lower fees
• Cardinal’s base annual fee is 1.5%, and works on a tiered structure as shown below.
- Tax deductibility
• Management fees for investment counsel services are tax deductible in Canada for all non-registered accounts.
These two features have a significant impact on portfolio value over time.
Cardinal is not paid commissions on account transactions or trades, rather, we earn fees based on assets managed. This means that it is in our best interests to maximize the value of each client’s portfolio.
Fees are billed at the end of each calendar quarter. Our minimum annual fee is $5,000 (plus GST). Management fees do not include brokerage commissions, account transfer fees, and custodial fees (if any), all of which are paid for by the client.
Fee Structure for Individual Investors
| Value of Assets |
|
Management Fee (as a % of assets) |
|
|
|
| First $2.0 million |
|
1.50% |
| Next $3.0 million |
|
1.25% |
| Next $5.0 million |
|
1.00% |
| Over $10.0 million |
|
Negotiated |
VPI Cardinal Pools: Maximum 2.3% MER charged at the fund level. Cardinal does not charge a direct management fee to clients on assets invested in these pools. However, our minimum annual fee of $5,000 is charged to the client regardless of account composition.