How to avoid a situation ”à la Norbourg”

Newsletters

Unfortunately, it is not the first time, nor will it be the last, that a case like "Norbourg" will make the news. 

At the request of some clients, we have decided to explain how Claret is structured to ensure the client's assets are well protected.  Please refer to the attached file.


Unfortunately, it is not the first time, nor will it be the last, that a case like "Norbourg" will make the news. At the request of some clients, we have decided to explain how Claret is structured to ensure the client’s assets are well protected.

When clients decide to hire Claret as portfolio managers, they open an account with CIBC Wood Gundy or Royal Trust (mainly for U.S. citizens). These two institutions safe-keep our clients’ assets, and therefore:

  • Provide a monthly statement of account reflecting all the transactions carried out;
  • Ensure that withdrawals payable to third parties are accompanied by a request duly signed in writing by the client;
  • Pay Claret’s management fees on a quarterly basis upon the receipt of an invoice. Our clients authorize these payments in our management contract.

Claret is entrusted with a mandate of portfolio management. Consequently, all assets are safe kept with CIBC Wood Gundy (or Royal Trust) and our clients are the only beneficiaries.

The accounts managed by Claret are all segregated at CIBC Wood Gundy (or Royal Trust); i.e. not only are the accounts opened under the clients’ names, but they also hold the securities directly. Our clients can also access their accounts on the Internet through CIBC Wood Gundy’s website or communicate with them directly. Investment Funds however, do not always freely display their contents.

In addition to these safe guards, Claret has and will continue to invest substantial amounts of capital in information processing systems in order to follow each transaction from our side, thereby providing a second level of verification. Therefore, if CIBC Wood Gundy or Royal Trust makes an accounting error, we would locate it quickly, inform them, and make the correction.

By putting emphasis on the transparency of our operations and by providing the most information possible on the progress of client portfolios, we sincerely believe that we give our clients the highest quality of reporting that any informed investor would require.

As a client, if you would like to get more information on your holdings at CIBC Wood Gundy or Royal Trust, you can either contact them or us directly. The co-ordinates are clearly indicated on their monthly statements.

We would like to thank you for your confidence in Claret Asset Management Corporation. If you have any questions, please call us (514) 842-6110 or 1 888 842-6110.