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Where We Manage Your Investments: Investment Management Fees
Where we are to be involved in management of your investments, you will be charged an all-inclusive Management Fee for financial planning and investment advice and services. This fee rate covers both the advice and services of Eitel, Nyvik International Inc. (this company is Steve’s family company that receives part of the investment management fees you pay) and of Lycos Asset Management Inc. It is the total compensation that we receive from you (with the exception of commissions on any insurance products; see below). The fee is charged by Lycos Asset Management Inc. each month to your investment account(s).
Your Lycos Investment Management Fee Agreement and the Lycos Client Relationship Disclosure are the key documents as to our relationship with you. There are no separate Eitel, Nyvik International Inc. agreements.
The all-inclusive annual Management Fee rate we normally charge ranges from 0.75% to 1.25% (plus sales taxes as applicable) of your portfolio assets that we manage. Your actual fee rate that you will be charged will be determined taking into consideration the size of your portfolio and your financial planning and investing requirements. The Management Fee is charged on a calendar month (annual fee rate divided by 12) in arrears based on the average market value of your investment accounts during the month. There are no minimum annual fees or retainers (i.e. fees charged in advance).
The fee rate covers our financial planning and investing advice and service including a review of your personal situation and goals, financial planning checkup, your portfolio design and implementation, calling anytime to discuss any investment or financial issue, review meeting preparation, semi-annual review meetings, portfolio changes in light of changing economic, market or personal circumstances, tax preparation and reporting, and financial planning advice and implementation of recommendations.
Eitel, Nyvik International Inc. and Lycos Asset Management Inc. does not accept commissions or indirect compensation for the sale or purchase of securities or other investment products. You are the only one paying which is all represented by the Management Fee.
Our Management Fee does not include the administrative fees or commissions charged by the custodian and/or investment dealer (such as National Bank Financial) which will be deducted directly from your investment account. The custodian/investment dealer may charge you administrative or service fees related to its services, which include but are not limited to wire transfers, transfer out fees, withdrawal fees from your taking funds out of a registered account, redemption fees from deferred sales charge (DSC) funds fees from funds you bought elsewhere that were transferred in and then incurred on fund redemption (note: if we buy mutual funds, we do so on a no-load basis; i.e. no fees to buy or to redeem), trailer fees or 12-b1 fees from mutual fund companies (these are kept by the investment dealer, not by us), and interest on debit balances on your accounts. The custodian/investment dealer may include a markup on bonds or debentures that are bought from you or sold from their inventory and on foreign exchange conversion.
Insurance Products: Insurance Product Commissions
For protecting your family against devastating financial losses (like the death, disability or illness of the family breadwinner, property loss, theft or damage, and liability claims) where insurance products are sold, Eitel, Nyvik International Inc. may receive insurance commissions.
Insurance product commissions on Canadian insurance products are fixed by the insurance company (which normally cannot be changed by an agent). We will disclose insurance commissions prior to purchase of any product. Our goal is, where insurance is needed, to get you the best product for you regardless of commission.
Fee-for-Service Financial Planning
Where we are not to manage your investments, your fee will be based on the scope of the engagement that Eitel, Nyvik International Inc. and you agree to in advance where we will provide an estimate of the cost before the engagement is commenced. The fee for such advice and service to be charged is based on an hourly cost ranging from $150 to $250 per hour depending on the complexity of the advice and service to be provided.
Termination of Advisory Relationship
Where we manage your investments, you have the right to cancel our agreement without penalty at any time by providing written notice to us.
Your termination rights are described in your Lycos Investment Management Agreement document. Our fees will be charged until you have transferred out your portfolio. You will, however, be responsible for any transactions executed in your accounts prior to our receipt of your notice of cancellation. You also understand that it may take up to 30 days to either liquidate the property in your account or transfer to another custodian or broker/dealer.
Where we don’t manage your investments and you deal only with Eitel, Nyvik International Inc., our relationship with you is terminated at the end of the day (and any fees will be charged for work performed up to the end of that day) when we receive your written notice.
ABOUT THE AUTHOR Steve Nyvik, BBA, MBA, CIM, CFP, R.F.P. is a Senior Portfolio Manager with Lycos Asset Management Inc. – an independent investment management firm located in downtown Vancouver, BC, Canada. Steve focuses on building income portfolios to meet family retirement needs and provides financial planning so that if ‘life happens to you’, your goals aren’t derailed in the process. He has been in the investing and financial planning profession since 1992. Steve can be reached at 604-288-2083 Ext 2 or toll-free at 1-855-855-9267, or by email at [email protected].