Who are we?

Forstrong Global Asset Management Inc. is a registered Portfolio Management firm incorporated on November 27, 2001. Forstrong‘s primary focus is to provide independent discretionary investment management services in separately managed accounts (SMA) designed to meet specific client priorities and investment objectives. Forstrong Global is currently registered as a Portfolio Manager in all provinces of Canada except Newfoundland and PEI.

How do we manage investments?

Our philosophy is that global balanced portfolios are the most effective way to manage investments for individuals in a rapidly changing world. Successful long term investing is achieved by focusing on asset allocation decisions. Selecting the right asset types and classes for each individual portfolio is more effective than selecting individual corporate and government issued securities. It is essential to actively manage asset mix, both strategically and tactically, to access opportunities worldwide while managing overall portfolio risk. We believe that exchange traded funds (ETFs) provide the most efficient and effective way to structure and manage global balanced portfolios for our clients.

What are the services provided?

Forstrong Global serves clients directly, as well as clients referred to us by other financial professionals to provide portfolio management services including:

  • Clarification of personal goals and financial priorities
  • Analysis of current financial standing and review of all family related investments
  • Assessment of client capacity and tolerance for risk
  • Definition of investment objectives and preparation of an Investment Policy Statement (IPS)
  • Recommendation of appropriate asset mix with specified guidelines
  • Selection, monitoring and adjustment of the investments on a discretionary basis in a segregated portfolio
  • Measurement and communication of portfolio results and assessment of progress toward investment objectives
  • Provision of quarterly statements
  • Facilitation of regular meeting/communications to discuss portfolio developments, portfolio strategy, and changes in personal needs or circumstances
  • Assist with deposits, transfers and payments
  • Liaison with custodian

What duties does Forstrong Global bear in the management of client accounts?

  • Forstrong Global has a duty to handle clients’ commissions in an efficient and judicious manner
  • Fair Allocation requires that Forstrong Global not intentionally favour or disfavour any client in the allocation of investment opportunities
  • Forstrong Global personnel must always put the needs of clients above their own in order to avoid any potential conflicts of interest
  • Respect Privacy and Confidentiality by ensuring that all information provided by clients is held in the strictest confidence and not be released to outside parties except as necessary in connection with the operation of your account

Note: Forstrong Global does not provide custody, brokerage, tax, actuarial or financial planning services. Forstrong focuses on its core strengths, seeking to deliver its investment strategies without any conflict of interest.

What are the advantages of investing with Forstrong Global?

Personalized investment management experience:

  • Direct relationship with your Portfolio Manager
  • Investment Policy Statement that reflects personal priorities
  • Separately managed account where investments are not pooled

Global balanced portfolios:

  • Forstrong thematic or global macro approach
  • Forstrong long track record of managing global balanced portfolios
  • Emphasis on ETF securities for cost effective global exposures

Dynamic asset allocation:

  • Emphasis on asset classes and types rather than individual securities selection
  • Core and opportunistic allocations according to market conditions
  • Seek low turnover to reduce cost and tax effect

Who owns Forstrong Global?

Forstrong Global is a company controlled by Industrial Alliance, which owns a 72% interest in Forstrong Global Asset Management Inc. The IA group of companies has assets under management and administration of more than $100 billion.

Who makes the investment decisions?

Forstrong Global Investment Management team is responsible for all key investment decisions. Forstrong is a pioneer in the development of Managed Global ETF Portfolios. Our success is attributable to a seasoned investment process as well as a proprietary portfolio system. Forstrong’s investment team regularly reviews domestic and international macroeconomic factors, relative valuations, interest rate and currency trends, as well as geo‐ political developments.

What are the responsibilities and services provided by the Custodian?

Fidelity Clearing Canada and National Bank Independent Network (NBIN) have agreed to provide services to our clients. You may utilize either one of the two institutions to provide the following services for your separately managed account (SMA):

  • Open accounts subject to completion of approved documentation
  • Trade and clear securities on the client’s behalf on such markets as directed by Forstrong
  • Credit interest on free credit balances according to an interest rate structure prescribed
    by Fidelity Clearing Canada or NBIN
  • Provide custodial services in respect to securities held in each SMA
  • Issue tax information

Note: Fidelity Clearing Canada or NBIN will not be responsible for the provision of investment advice, reposting performance or ensuring that Forstrong Global is acting in accordance with terms and conditions of client agreements.

How do I access my cash and how much notice is required?

Whenever you wish to add or withdraw funds from your portfolio, you must communicate this directly to Forstrong Global and we will relay this information to your custodian. For your protection you may have a cheque issued in your name or deposited directly by electronic funds transfer to your designated bank account on file with the custodian. Your request for funds will be executed on the scheduled weekly trading date provided that your request is received before the end of the previous business day. Allow a minimum of seven (7) business days for delivery. Please be sure to sign your request for funds.

How will I be kept up to date on developments concerning my portfolio?

Forstrong Global will send you regular electronic communications including a monthly communication containing articles of interest or research that we feel is pertinent to your portfolios. You will receive a quarterly statement directly from Forstrong and quarterly statements from your custodian (a monthly statement if there is activity that month) that detail your portfolio holdings, changes to the account and performance reporting. We strongly urge you to sign up for our free online account access so that you may review your portfolio at your convenience.

What is the benefit of an Investment Policy Statement (IPS)?

The Investment Policy Statement is the document we use to determine the suitability of any position/security for your portfolio. This document has been completed to reflect your specific investment objectives, income needs and risk tolerance. It outlines the types of assets and the optimal asset allocations we have determined that are suitable to help you achieve your investment goals.

Why does Forstrong Global offer Separately Managed Accounts (SMA)?

SMAs or segregated accounts offer several advantages over pooled or mutualized structures:

  • Protection – SMAs create a clear separation of responsibility where a custodian holds or segregates your funds and securities while conferring trading authority to your Portfolio Manager to manage your account on a discretionary basis.
  • Customization – SMAs allow the Portfolio Manager complete flexibility to manage to your specified risk and return parameters and even to efficiently realize gains and losses according to your unique tax circumstances at a fee that is specific to your asset thresholds.
  • Reporting – SMAs provide you, your Portfolio Manager and other designated financial professionals (such as accountants) with institutional quality reporting and 24 hour electronic access to all of your related accounts.

How do I buy and sell securities on my own?

The accounts Forstrong Global manages on your behalf are discretionary which means that you have given us the responsibility to purchase and sell securities on your behalf, provided we believe the transaction is suitable for your portfolio. We do not offer commission based advisory or do‐it‐yourself account services. Should you wish to invest a portion of your account on your own you can open a separate brokerage account at another firm for this purpose.

What do I do if I have a complaint?

Should you have any concerns or complaints, we encourage you to raise these directly to your Portfolio Manager so that Forstrong Global can resolve the issue to your satisfaction quickly. Otherwise you can contact the Chief Compliance Officer at 26 Wellington Street East, Suite 920, Toronto, ON, M5E 1S2.Toll Free: 888‐419‐6715. You may also contact an independent external dispute resolution party if necessary to resolve the situation. For more information see our Statement of Policies Re: Related and Connected Issuers and Registrants and Complaint Reporting Information.

Who are my contacts at Forstrong Global?

We encourage frequent communication with your designated Forstrong Portfolio Manager as the preferred way to develop a long term professional relationship.

What are the benefits of dealing directly with a Portfolio Manager?

A Portfolio Manager is a fiduciary who is required to act for their client’s exclusive benefit. This is distinct from an advisory relationship where the advisor is only required to meet a suitability standard. Portfolio Managers are also required to meet higher standards of experience and expertise for licensing. A Portfolio Manager is expected to meet a prudent expert standard in carrying out their management duties.

When should I contact you?

You should feel free to contact us any time that you have a question or concern regarding your portfolio. We also ask that you please keep Forstrong Global up to date with respect to any changes which might impact your Investment Policy including letting us know if your circumstances change or if any of your personal information requires updating. This may include a change of address, your employment situation or any meaningful change in your investment objectives or tax situation.

How often will we meet?

At least annually you should meet with your Portfolio Manager in person or by teleconference to review performance and your progress toward achieving your goals. This is a good opportunity to confirm that your investment policy guidelines are still appropriate for meeting your requirements. You can determine with your Portfolio Manager how frequently you would like to schedule meetings.

What are the tax implications of my investments?

For taxable investors, the interest earned from fixed income investments is generally taxed at a higher rate than the tax for the dividends earned from qualified Canadian companies. Capital gains/losses are triggered when an investment is sold. Each client will have their own unique cost or book value for each security that they hold. You should consult a tax expert for advice.

Who provides me with tax information?

Your custodian is responsible for providing you with all tax slips and year‐end summaries.