Frequently Asked Questions

1.Why should you hire Campbell & Lee to manage your portfolio?
We provide a highly personalized service. Each portfolio is custom-designed specifically for your needs. We will communicate with you on a regular basis. Most importantly, we will welcome your call to talk or meet with any of us to discuss your portfolio. This level of service is rare.
Our fees are very competitive compared to other investment counselors and are much lower than fees typically charged by mutual funds and wrap accounts. We only make more when you make more.
We have a long history of delivering solid investment returns. Depending on your circumstances, we can manage your money aggressively to produce higher returns at higher risk or conservatively for current income and capital preservation – the choice is up to you.
We have selected the TD Bank to act as your custodian, to provide an independent reporting system with monthly statements and full year-end tax information.

2.How will we manage your money?
We do not “process” people or attempt to fit them into pre-determined portfolios.
First, we take the time to get to know you. We strongly believe we can do a far better job for you if we know you and your family’s circumstances, needs, concerns and goals. We can then custom-design the portfolio for your unique needs.
Then we work with you to establish the proper asset allocation - bonds versus stocks, for example - to deliver optimal performance at a level of risk that is appropriate and acceptable to you.
We do not attempt to “shoot the lights out” for all-out performance. We do our utmost to give you the best investment performance we can, but it must be consistent with your risk tolerance levels. Our style is value-oriented but we will buy growth securities at a reasonable price.
We closely monitor macro-economic factors, partially to help fine tune asset allocations, but we primarily use bottom-up fundamental analysis for individual security selection.
Our expertise is in Canadian and U.S. securities. For non-North American securities, we select the best foreign managers and monitor them closely on your behalf.

3.What is involved in becoming a Campbell & Lee client?
While the process involved in becoming a client is fairly simple we know that you will want to make sure we understand your situation and your investment parameters. This usually takes at least an hour. During our initial meeting we agree on the portfolio mix among the major asset categories such as short term, equity and fixed income holdings. We will often also discuss particular investment concerns you may have as a result of lifestyle, employment or other factors in your investment profile that are unique. In this way investment guidelines are created from which we can manage your portfolio on a discretionary basis.

4.What is a Portfolio Manager?
A portfolio manager is a fully-qualified professional, who has been licensed to manage investment portfolios on a discretionary basis and to advise clients.
A portfolio manager’s only business is to manage client portfolios on a continuous, ongoing basis. He is independent and his only compensation is fees charged to his clients. The fees are based on the assets managed and the investment performance. Fees are never based on the number or value of transactions.
An portfolio manager is professionally trained to select only securities that are appropriate to the client’s circumstances and requirement.

5. What is the difference between an portfolio manager and a financial advisor?
A financial advisor can offer financial advice in many areas, such as estate planning, insurance and investments much the same as a portfolio manager.  The main difference is that a portfolio manager can specialize in managing financial assets on a discretionary basis on behalf of a client and must be licensed to do so.

6. Campbell & Lee specializes in segregated portfolios. How do these differ from pooled funds?
Pooled funds can be defined as a large portfolio of investment assets.  Investors who own pooled funds own a percentage of those funds based on the amount of money they have invested. A pooled fund tends to be set up to respond to the general investment needs of a broad group of investors. The primary drawback of a pooled fund is that it cannot be unique to an investor’s needs. A segregated portfolio has been set up to specifically address the needs of a particular client. The client owns all the securities within that portfolio. As situations within the market and with our client change the portfolio is adjusted. At Campbell & Lee each portfolio is designed to respond to the individual needs of each client. No two portfolios are exactly the same.

7.What do you mean by discretionary management of my funds?
At the beginning of our relationship with our clients and at formal regularly scheduled interim meetings we decide with you on appropriate investment guidelines and strategies for the funds we are to manage.  We will then manage your funds within these guidelines and strategies.  We will meet with you at appropriate intervals to update strategies and guidelines, review our management performance of your funds, and discuss future strategies and changes to your guidelines.

8.How can Campbell & Lee add value?
Our investment approach is often referred to as “growth at a reasonable price” (GARP) and we carry out this style within a portfolio approach. Undervalued stocks with long-term potential growth are targeted for research and potential purchase. In addition, our portfolio approach to investing means that you will have representation in all major market sectors with each portfolio overweighted in those sectors that we believe will perform well in the future and underweighted those that we believe will face challenges. We will add value by limiting portfolio exposure in less attractive areas and then selecting undervalued securities in potentially profitable market sectors.

9.What is portfolio turnover and how does it affect a taxable client
Portfolio turnover is an indicator of how often buys and sells are made within the portfolio. Buys and sells are generated as broad goals in particular stocks, industry segments and the market are met. Investment counselors like Campbell & Lee do not profit from commissions generated by buys and sells. Active trading has been shown to be a deterrent to portfolio performance so it is in neither the clients' nor our interest. We would be considered a low-turnover manager. Taxation of realized capital changes can affect a portfolio’s management and we discuss this with taxable clients.

10. Can Campbell & Lee clients restrict certain securities from their portfolios based on ethical or other considerations?
Yes. Each portfolio is created with the unique needs of each client.

11. Do you invest in foreign markets?
We specialize in Canadian and US based equities and fixed income products.  For our clients who look to add foreign exposure to their portfolios, we use exchange-traded funds by handpicked managers to achieve foreign exposure where desired.

12.What is our fee schedule?
We have a competitive fee schedule which will be provided upon request.

13.My spouse has $400,000 between RRSPs and fixed income investments and I have $600,000 between my RRIF and a taxable stock portfolio. Do we meet Campbell & Lee’s investment minimum?
Yes.

14.Campbell & Lee uses a custodian. What role does a custodian play?
A custodian provides financial accounting services for clients. TD Waterhouse is the custodian for most of our clients. TD Waterhouse provides monthly financial statements, records of income received and paid and purchases and sells of securities for tax purposes. The custodian also ensures that we have provided all necessary documentation and approvals from clients.At this time there is no fee for this service. TD Waterhouse also acts as trustee for many tax deferred plans under our administration. There is a fee charged by TD Waterhouse for this service.

15.Will Campbell & Lee provide references?
Upon request.