What is a managed account?
A managed account enables investors to entrust their money to a professional management company, which then aims to maximize returns by buying and selling securities (shares, bonds).

What advantages do managed accounts offer?
By choosing a managed account, you benefit from:

• A personal manager and an approach based on individual needs.
• A wide choice of investment strategies designed to cater to varying risk-return objectives.
• Professional management services that minimize the risk inherent in investing in securities.
• Comprehensive information and regular reports about your investment.
• Commission based on results.

Managed accounts give you the chance to grow capital with a minimum of time and effort by letting professionals do the work. All our managers are licensed by the FCSM to carry out asset management.

How do managed accounts differ from bank deposits?
Managed accounts offer potentially much higher returns than bank deposits. Also, funds can be withdrawn at any time without penalty. And while managed accounts involve a certain amount of risk, you can choose parameters that you are comfortable with.

How do managed accounts differ from mutual funds?
The main difference is in the way that individual preferences are considered. Mutual funds operate in strict accordance with their investment declarations, while individual managed accounts are not subject to such restrictions. Another benefit is the services of a personal manager, who helps to develop a unique investment strategy.

How do managed accounts differ from independent investing?
Successful investing in securities requires extensive knowledge of the stock market. Those who decide to go it alone need to devote substantial time and effort, as the risks can be high. Individual investment plans offer several advantages. In particular, they eliminate the need to follow the market on a daily basis; this is done by an account manager, who is committed to generating maximum returns for clients as his/her commission depends on the results delivered. Meanwhile, the investment portfolio is compiled on the basis of individual requirements, including clients’ risk-return objectives and the liquidity of the money.

Who may open a managed account?
Both individuals and legal entities may open an account.

What does the process entail?
The process involves:

• Developing an investment strategy: We determine the client’s aims, focusing in particular on risk-return objectives.
• Creating a portfolio: We identify which securities to invest in and how much.
• Evaluating the portfolio: We compare the performance in terms of risk and return with that of a corresponding benchmark portfolio.
• Providing regular reports and information: The managed account agreement stipulates what should be provided and when.
• Closing accounts and setting any fees/commission: When an agreement is due to expire, either it can be extended or the account is closed and all due payments are made.

How is a managed account opened?
All you have to do is sign an agreement with us.

Does TDAM have to provide any reports about investments?
Of course. The managed account agreement stipulates what should be provided and when.

How is an investment portfolio compiled?
Securities are chosen on the basis of the investment strategy that most closely matches a client’s individual aims and risk-return objectives.

What are the main investment targets?
The money is invested mainly in equities and state, municipal and corporate bonds, depending on the strategy chosen.

Can a portfolio include cash?
Yes, including foreign currency.

Can funds be invested in derivatives (options and futures)?
Yes, to reduce the risk of assets depreciating, and in accordance with the law and the investment strategy rules.

Can funds be invested in securities issued by foreign companies?
Yes, our Fund of Funds strategy was specially designed with this in mind.

Does a management company act in the name of investors?
No, it acts in its own name.

Is anyone else involved in the process?
No, only the management company is involved.

Can I have income and dividends due paid regularly?
Managed accounts make no provision for this.

Are any taxes payable?
Individuals pay 13% on any annual returns, while legal entities are responsible for calculating and paying any profit tax due.

What are the benefits of TDAM’s managed accounts?
At TDAM, we work with our clients to develop individual investment strategies, helping to determine the optimal risk-return objectives, timeframe and main investment guidelines.

How are the fees calculated?
Our fees differ depending on the strategy and consist of two parts. The management fee is calculated quarterly using the value of the assets on the last day in the period. After this had been added, a performance fee is calculated. This takes into account only returns over a certain percentage between the opening of the account and the last time the management fee was charged. If no results are delivered, no performance fee is payable.