Portfolio Management

Private Wealth Management

The average return of the portfolios managed by Charles K. Langford Inc. was 10.90% with a standard deviation of 3.75 in 2016 and 13.50% with a standard deviation of 4.65 in 2017, after trading commissions and ¾ of management fees.

 

The preferred minimum amount to manage is 250K$ but any amount greater than 100k$ is acceptable and the management fees are 0.9% of the total invested assets (900$ for every 100 000$ of assets, plus tax) per year, payed on a pro rata basis at the end of the quarter.

There is no transfer of funds. The customer keeps his account at his brokerage house and gives Charles K. Langford Inc. ("CKL") the official authorization to enter the account and carry out the transactions.

This authorization is the standard document that each brokerage makes available to its clients who have their account managed by others. The customer can, at any time, see his account available online from his brokerage house.

The management of CKL is based mainly on ETFs and their options, not on individual stocks. The method of market entry and exit is based on technical analysis.

If permitted by the client, CKL uses option strategies to complement its portfolio management, for example buying call options, selling covered call options, buying put options (granted in a RRSP) and selling short put options (margin accounts only).

In Canadian dollar accounts, CKL invests in ETFs in Canadian dollars (CAD hedged) on a US index, for example XSP, XHY and XHD, etc. and in ETFs on a Canadian index.

If the customer has a US dollar account, CKL essentially trades the same products (e.g. SPY or QQQ or SPLV, HYG, HDV, etc.) and uses, among other things, the weeklys options, which are, according to the strategies, more profitable than traditional options.

CKL actively manages futures accounts and commodity futures accounts. The minimum amount to invest is $ 25K. The administrative procedure is the same as for the ETF accounts.

Disnat offers an excellent service in drawing quarterly management fees directly from the account or from one of the client's accounts. The customer receives the invoice from CKL as a reference and the original goes to Desjardins Online Brokerage (Disnat), who is then responsible of issuing a check in the name of CKL. If the account to be managed is elsewhere, the usual procedure is that the customer sends us a check upon reception of the invoice of the fees.

Financial institutions affiliated with banks offer a similar service to that of Disnat: the customer sends the invoice to the financial institution and they then take the invoice amount from the customer's account and deposit it in the account of CKL.