Asset Management

Affinity Securities of Worldsource Securities Inc.,has the ability to utilize all major investment solutions in creating your investment strategy. Some companies may only be able to provide mutual funds or insurance industry products. Having the ability to utilize a wide array of solutions will provide you with far greater flexibility in designing your investment portfolio.

As a sponsoring investment dealer and strategic partner for the advisor Worldsource Securities Inc. provides the advisor with the tools, service and support they require to best meet their clients needs. National Bank Correspondent Network (NBCN) provides clearing and settlement services.

We are able to open and advise you on many different types of accounts. We take the extra steps to utilize both Canadian and US dollar accounts to help us manage currency exposure. Some of the account types available include:

  • Individual non registered accounts
  • LIRA (Locked in Retirement Account)
  • RESP (Registered Education Savings Plan)
  • RRSP (Registered Retirement Savings Plan)
  • RRIF (Registered Retirement Income Fund)
  • SRSP (Spousal Retirement Savings Plan)
  • TFSA (Tax Free Savings Accounts)
  • IPP’s (Individual Pension Plans)
  • Trust Accounts
  • Corporate accounts (Holding Company and Operating Company)

Investment Solutions

At Affinity Securities, when designing your portfolio we are able to utilize a wide array of solutions to help you reach your goals. In Canada, there are numerous options in designing your investment portfolio, some of the major categories include:

  • Individual Securities (Stocks, bonds)
  • Exchange Traded Funds (ETFs)
  • Mutual Funds and SMA’s
  • Alternative Investments

Individual Securities

At Affinity Securities we have the ability to utilize individual securities to enhance and compliment other asset classes within your portfolio. We strongly believe in being able to offer all solutions available to a Canadian investor.

Securities are typically divided into debt securities and equities.

A debt security is a type of security that represents money that is borrowed that must be repaid, with terms that define the amount borrowed, interest rate and maturity/renewal date. Debt securities include government and investment grade corporate bonds, high yield corporate bonds, guaranteed investment certificates (GIC), preferred stock and collateralized securities.

Equities represent ownership interest held by shareholders in a corporation, such as a stock. Unlike holders of debt securities who generally receive only interest and the repayment of the principal, holders of equity securities are able to profit from capital gains and dividend distributions.

Exchange Traded Funds

An ETF trades like a stock on a stock exchange and looks like a mutual fund. Its performance tracks an underlying index, which the ETF is designed to replicate.

ETF’s are designed to track an index, therefore considered a passive investment strategy. In recent years the interest in ETF’s has grown immensely. This has lead to the evolution of the product to include actively managed and rule based ETF’s. These solutions can give you exposure to either broad or specific areas of the market at for a lower cost than a mutual fund.

Valuable information can be found on the ETF providers’ websites. Some links are provided below:

Mutual Funds and SMA’s

A mutual fund is an investment vehicle that is made up of a pool of assets collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.
Mutual funds are typically actively managed  by portfolio managers, who invest the fund’s capital and attempt to produce capital gains and income for the fund’s investors. A mutual fund’s portfolio is structured and maintained to match the investment objectives.

One of the main advantages of mutual funds is that they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult (if not impossible) to create with a small amount of capital.

A Separately Managed Account (SMA) differs from a mutual fund because it often requires a higher investment minimum per account. While SMA’s are very similar to a mutual fund, they often provide more detailed information regarding holdings, strategy and trading activity.

Alternative Solutions

Alternative solutions are not one of the three traditional asset types (stocks, bonds and cash). Most alternative investment assets are held by accredited and high-net-worth individuals because of their complex nature and relative lack of liquidity.

Alternative investments are favored mainly because their returns have a low correlation with those of standard asset classes. Because of this, many large institutional funds such as pensions and private endowments have begun to allocate a small portion (typically less than 10%) of their portfolios to them.

Typical alternative assets may be hedge funds, commodities and derivatives. In addition to this, we provide traditional long equity Offering Memorandum solutions that still have the same barriers of entry and limited liquidity similar to an alternative asset.

Value of Fee Based Advice

Traditionally, in Canada, the Investment Advisory/Financial Advisory industry is accustomed to Advisor’s compensation being based on commissions or a combination of commissions/service fees that are not transparent to the investor. These traditional methods can create real, or perceived conflicts of interest that may not be advantageous to your investing experience and results.

 

 

At Affinity Securities, we believe in complete transparency and disclosure in explaining the total costs of an investment portfolio. Costs may include mutual fund expenses (MER), trading expenses, management fees and commissions. We feel the industry will naturally evolve in this direction, but Affinity Securities has been a believer in this method of compensation and full disclosure since its roots.

Due to our forward thinking mentality, we have received tremendous feedback from current clientele. Instituting a compensation model with no incentive other than growing a client’s investment portfolio and helping them make financially savvy decisions has been very popular. In the end, we are compensated based on the market value of your portfolio. Therefore, we simply want to provide high quality advice.

We feel it is necessary that a client works with an advisory team that has a vested interest in their investment portfolio and provides a compensation model that removes conflict of interest in the advisor-client relationship.

Is it Worth a Second Opinion?

The Canadian investment advisory and financial planning industry is constantly evolving. With numerous business models and licensing requirements, clients are often not aware of the limited solutions offered by their financial institution.

At Affinity Securities, we believe in developing a relationship of trust and diligently working with you to understand your personal objectives. Throughout this process we will provide a tailored strategy which will include educating you on asset classes, providing fee transparency, and understanding risk / performance metrics involved with accomplishing these goals.

Investments are provided through Worldsource Securities Inc., Member of the Canadian Investor Protection Fund, Member of the Investment Industry Regulatory Organization of Canada and sponsoring investment dealer of Affinity Securities.

You can check the registration status of your Advisor at IIROC AdvisorReport

* Tax advice, risk management and other advisory services including insurance solutions are provided as part of a comprehensive financial plan through Affinity Financial Group Please visit www.affinityfg.com for further information.