The following question bank has been created to help individuals better understand how Pacifica Partners serves our client needs by answering common questions that often arise.

Should you have questions not indicated below, or would like to speak to someone regarding your personal investment circumstances please click here.
 

FAQ categories

General questions
Services provided 
Opening an Account
Investment Process
Cross-border investing
 

General Questions:

• I am considering Pacifica Partners as my investment manager. What are your key strengths?  Pacifica Partners primary advantage is our independent structure which allows us to provide truly customized solutions to meet each of our client needs.  In addition, we pride ourselves on excellent client accessibility.  At the heart of our services is our investment process which is rigorous, disciplined, and unique to that which is commonly offered by our competitors. We are experienced in providing cross-border investment management services.
   
• Who chooses discretionary portfolio management?  Individuals who prefer a sophisticated level of portfolio management that is delegated to a trusted professional.  This allows them to focus on their profession, family or other personal pursuits.
   
• Where is your office in the US located?  Pacifica Partners serves both our US and Canadian clients from our headquarters in Surrey, BC (Canada) - located on the border of greater Vancouver BC and the BC Fraser Valley region. Our office is also only minutes away from the BC and Washington State border.
   
• What is your account minimum?  Our account minimums are flexible and determined on a case-by-case basis. However, we are always happy to provide a complimentary portfolio review and answer questions regardless of an investors account size.  Client accounts range in size from approximately $100,000 to $5-million plus.
   
• Who are your clients? Our clients cover a wide spectrum and commonly include:  Multi generational families, physicians, snowbirds, business owners, executives, university professors, professionals, and athletes. Our clients include both American and Canadian citizens, whether at home or abroad.
   
• Where are your clients located?  We have clients located across the Canada and the US.  We are currently Registered Portfolio Managers and advisors with the British Columbia Securities Commission, the Ontario Securities Commission, and Registered Investment Advisors (RIA) with the United States Securities and Exchange Commission.  For our clients not located in the greater Vancouver, BC area we conduct regular communication via phone and various forms of online communication.
   
• Who owns Pacifica Partners? Pacifica Partners is completely independent and 100% employee owned.
   
• How long has Pacifica Partners been in operation?  Pacifica Partners Capital Management was launched in November of 2008.  However, our managing partners have had advising relationships with many of our clients for over a decade.  In addition, amongst the management group there is a combined 50 years of industry experience.
   
• How much do you charge to answer questions about my specific situation?  We are pleased to provide complimentary initial consultations on a no-obligation basis.  If during our consultation we discover that your personal financial circumstances requires the expertise of another professional such as a tax and estate planning lawyer or accountant, we will direct you toward the appropriate professionals to ensure your questions are answered completely.

• If you don’t charge for answering questions, how are you remunerated?  Pacifica Partners operates entirely on a “fee for service” basis.  In other words, we are compensated on management fees on the client accounts which we manage.  We do not charge for assisting individuals and are pleased to provide the services on a good-will basis.
   
• How are you compensated?   Pacifica Partners is a fee-only portfolio manager. As with domestic accounts for Canadians, the firm charges a flat % fee.  The firm does not receive mutual fund or trading commissions, thus aligning our goals with those of our clients – our revenue only grows when our client accounts grow. 
  
  For clients who only wish to receive ongoing comprehensive financial planning expertise (no assets managed), Pacifica does charge a competitive hourly rate for consultative services.
  
  Ongoing financial planning is complimentary for clients whose assets are managed by Pacifica.   Please contact us for further details.
   
• Is your management fee tax-deductible?  The management fee charged for our services is tax-deductible for non-registered accounts in Canada and the USA.
   
• Are my accounts at Pacifica Partners “locked in” to a specified term?  No, accounts at Pacifica Partners are portable and your assets are not locked in to specified terms.

Services Provided FAQ:

• How is Pacifica Partners different than a brokerage or financial planner?  Pacifica Partners has the capability of a “discretionary portfolio manager,” as opposed to the limitations of an “investment or financial advisor” which most brokers and financial planners are categorized as.  However, Pacifica will accept certain advisory accounts, evaluated on a case-by-case basis. Please contact us for more detail between discretionary management and advisory services.
   
• Would I have input into the management of my portfolio if your service is discretionary?  Yes, client input is crucial in determining the guiding objectives in managing your account as detailed in each client’s unique investment policy statement. Although the day-to-day management is handled without continuous communication, our team is always accessible and we are proactive in notifying clients in changes to our investment outlook.
   
• Do you sell insurance products? No, we do not sell insurance products and specialize only in investment management.  However, we have established relationships with accredited insurance professionals.
   
• Do you provide financial planning? Financial planning is a key input into the investment management process.  Therefore, we provide financial and retirement planning services as part of our investment services.  If you have an external financial planner and would like us to implement their financial plan, we are able to accommodate such requests.

Investment Process FAQ:

• Do you use mutual funds in your investment process?  From time to time we will use mutual funds for clients when appropriate.  However, we limit our use of mutual funds and prefer mutual funds that have low-MERs (management expense ratio) and are “no-load”, in other words, cost effective solutions. 
  
  More commonly however, we invest in individual stocks, bonds, and low-cost exchange traded funds (ETFs).  We believe that this approach better addresses the needs of clients and is a lower cost alternative to most mutual fund portfolios.
   
• Do you receive inducements from mutual fund companies?  No, we are proud to acknowledge that unlike many other investment advisors we cannot receive any form of inducements from mutual fund providers as governed by our overseeing regulators.  We believe that our fee-for-service structure best aligns our investment management services with the objectives of our clients.
   
• Do you manage your own fund?  If so, will my assets be pooled with those of other clients?  Pacifica Partners is a "Fund Manager", and we do manage our own fund that is exclusive to clients of Pacifica Partners.  However, we offer both actively managed segregated portfolios for clients as well as access to our exclusive investment fund.
   
• Do you use hedge funds in your investment process?  Yes, we have selectively utilized hedge funds for clients where and when it is appropriate to do so.  Investing in any alternative asset class (such as hedge funds), however, would make up a relatively small portion of a typical investment portfolio.
   
• What type of investment mandates do you manage?  Although each client portfolio is unique, our clients generally fall into one of five broad categories.
  • Balanced Income:  Clients that require higher than average income from their fixed income and stock investments but would also like some price appreciation of their invested capital.
     
  • Balanced Growth:  Clients that require less than average income from their fixed income and stocks investments and have a higher than average requirement for capital appreciation.
     
  • Growth:  Clients that are primarily concerned with capital appreciation with a primary focus on equity investments.
     
  • Cash Management:  Clients that wish to have their assets managed exclusively in short term government treasuries.
     
  • Fixed Income:  Clients that wish to have a diversified bond portfolio with no stock (equity) holdings.
     
• Do you focus your investment practice on commodity stocks such as metals & mining companies and oil & gas companies?   No, for our client mandates we attempt to find investment opportunities across all business sectors and countries, with a primary focus on large-cap Canadian, US, and international companies.

Opening an Account FAQ:

• How do I open an investment account?  After meeting with a member of our client services team we will guide you through the account opening process.  In most cases opening a new account is a simple and a hassle free process and often processed within approximately 48 hours.
   
• I have an existing portfolio with a broker or financial planner. Would I have to sell my holdings, transfer it over in cash, and thereby incur commissions and taxable charges?  No, for most stocks, bonds, mutual funds, and options we can transfer your account “in kind”, in other words your portfolio would be transferred to Pacifica Partners but not modified through selling existing assets. Therefore, no taxable gains or commissions should be triggered by your former institution.
   
• Will I incur costs when transferring my portfolio from my existing broker or financial planner to Pacifica Partners?  In the vast majority of circumstances any transfer costs that may arise are reimbursed by our custodian directly to your portfolio.
   
• Upon transferring my portfolio will you simply sell my holdings that don’t match your other clients’ holdings?  No, unlike much of the industry, when transferring your account we will examine your portfolio for possible strengths and weaknesses and migrate your portfolio to what we believe is ideal in relation to your investment objectives.  During this process we will be mindful of tax constraints, income needs, and unique circumstances when making adjustments to your portfolio.

Crossborder Investment Management FAQ:

• What is included in your no-obligation initial crossborder consultation?   Our team will provide you a 60-minute consultation that will summarize key issues and actionable items that require addressing.  We will provide initial direction on many of those issues.
   
• I frequently travel outside of Canada or the US and have difficulty placing trades with my broker, can you assist?  Yes, Pacifica Partners is licensed as a discretionary investment manager, in other words, we are continuously managing your accounts thus traveling abroad for work or pleasure will have virtually no impact on the attention that your portfolio receives.  

• I am a snowbird and cannot actively manage my accounts when I am wintering in the US, can you assist? Yes, our discretionary management services and crossborder licensing is ideal for any individual spending portions of the year on the other side of the Canada/US border.
   
• My RRSPs have been “frozen” since I left Canada. Can your company manage RRSPs for non-resident Canadians?  Yes, because Pacifica Partners is licensed in both Canada and the USA, we manage RRSPs and other Canadian accounts for non-residents.
   
• My 401k or IRA has been “restricted” since I left the USA. Can your company manage IRAs for non-residents?  Yes, because Pacifica Partners is licensed in both Canada and the USA, it does manage IRAs and other US accounts for non-residents.
   
• Can you file Crossborder Canada-USA tax returns?  No, we are not tax advisors or accountants.   We do provide basic tax information, but prefer to have our clients engage our network of independent tax professionals with a specialization in Crossborder expertise.
   
• Do you provide legal Crossborder advice?  No, Pacifica Partners does not provide legal advice, but we have access to a network of legal professionals who specialize in a variety of areas, all with an expertise in Crossborder issues.
   
• What is the benefit of having a cross-border portfolio manager manage both my US and Canadian accounts?  The benefits primarily depend on your personal financial situation.  However, our clients have commented to us:

Efficiency of portfolio management – over-diversification is eliminated and the entire portfolio is managed to a cohesive objective.
 

Efficiency of tax management and tax reporting for accountants.
 

Currency management – to match future cash flow needs and to take advantage when one is significantly over/under valued relative to the other currency.
 

• If I leave Canada, can I unlock my LIRA (Locked-in Retirement Account) and transfer it to an RRSP?  Generally, it can be done.  Once you have left Canada, non-residency status may allow for the unlocking of LIRAs.  It largely depends on the province of residence and the length of non-residency.
   
• I moved to Canada from the US and plan on permanently remaining.  I have been told that because I did not consolidate my 401k(s) prior to leaving the US I have to grant Power of Attorney to someone to make that possible.  Is this action necessary?  No, the information that you received is incorrect.  You do not need to grant power of attorney to accomplish what you wish to accomplish.  Instead, we can assist in two ways:  
  
  Firstly, your 401K can be rolled into an IRA and actively managed by Pacifica Partners as a US domiciled account.  However, there are complications if the account is a 401K TIA Cref (teacher's pension).  Please contact us to know more.
  
  Alternatively, Pacifica Partners can roll your 401K into a Canadian domiciled RRSP, however, this requires multiple steps and various tax complexities that we can inform you of prior to undertaking this route. - This question/answer was added March 30, 2012. Regulations may have change from the posting date. Please contact us to ensure this procedure is still viable.
  
  Additional Crossborder Information Resources on PacificaPartners.com: 

If you would like to learn more about Pacifica Partners
or have a question not answered above please contact us.

Crossborder Investing one-page information report (available in html or pdf).
 

Moving to Canada one-page information report (available in html or pdf).
 

Moving to the US one-page information report  (available in html or pdf).