How is Cougar Global different?

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We at Cougar Global distinguish ourselves from our competitors by:

• Providing expertise in top-down, global asset allocation
• Truly customizing portfolios to meet the specific risk and return requirements of our clients
• Dynamically allocating among thirteen global asset classes using Exchange Traded Funds (ETFs) plus a money market fund
• Rebalancing client portfolios monthly (if necessary) based on a forward-looking analysis of global capital markets
• Use of advanced statistical processes to allocate assets and measure risk
• Offer an indexed approach to tactical asset allocation
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ASSET CLASSES

What are the asset classes that Cougar Global Investments uses when managing an account?

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A client account will be invested in a portfolio that will include a combination of the following assets:

• U.S. Equities
• European Equities
• Canadian Equities
• Emerging Market Equities
• Pacific Equities - Japan/Australia etc.                         
• Canadian Bonds
• U.S.$ Short-term bonds
• U.S.$ Mid-term bonds
• U.S.$ Long-term bonds
• U.S.$ Investment Grade Corporate Bonds
• Global Bonds x U.S.
• Cash & Money Market
• Gold Bullion

BROKERAGE

How are trades executed?

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All trades are executed net of brokerage commissions.

CLIENT REPORTING

What kind of reporting does Cougar Global provide?

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All clients receive quarterly reports on their accounts.  Each quarterly report includes a contribution and withdrawal schedule, annual account reconciliation, quarterly account reconciliation, portfolio summaries by asset class, and detailed portfolio appraisal reports on each security held in the portfolio.
According to a recent article in the Wall Street Journal, fewer than 10% of investors receive the type of information that Cougar Global clients receive:

1) The market value of the portfolio compared to net contributions (i.e. market return net of cash flow)
2) An itemized account of all deposits and withdrawals
3) Personalized rate of return not only for the most recent period, but also since inception
4) The cost basis of the portfolio

CURRENCIES

Does Cougar Global accept assets in other currencies?  If so, how is the exchange rate determined?

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Cougar Global has many clients who bring assets to their accounts in foreign currencies.  The most common currencies are pounds Sterling, U.S. dollars and Canadian dollars.  However, we will accept deposits or transfers into your account in any foreign currency.

CUSTODY

What is custody and what does it cost?

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Effective January 1, 2010, all securities are held in safekeeping on an individual basis by RBC Dexia Investor Services, one of the largest third-party custodians. Clients receive a second set of quarterly statements directly from RBC Dexia outlining activity within the account and confirming all holdings as of the end of the quarter.  

An annual custody fee of 0.16% will be charged by RBC Dexia quarterly. This fee is subject to change.

ELECTRONIC FUNDS TRANSFER

Can I use electronic funds transfer to contribute to, or withdraw from, my account?

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You have the option of regular automatic transfers from your bank account into your Cougar Global investment account.  This option will be of particular interest to RRSP clients who would like to contribute on a regular basis.  You may also have deposits made automatically into your bank account from your Cougar Global account.

Exchange Traded Funds (ETFs)

ETFs- What are they?  What are the Pros & Cons?

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ETFs are baskets of securities that trade like a single stock.  For the most part the securities in an ETF are those that are found in an index such as the S&P 500 or the S&P/TSX Composite.

ETFs are ideal for an asset allocator such as Cougar Global because they allow our clients to most directly benefit from our primary strengths - asset allocation and downside risk management.  Cougar Global has an ETF-based product that capitalizes on the many strengths of ETFs including:

• a cost-effective way to gain access to an entire asset class in a single security;
• exact replica of the indices Cougar Global uses in its quantitative model - there are no “Manager Surprises”;
• a reduction to the number of “trading events” a client is subject to;
• dramatic reduction of the cost and time required to rebalance an asset class;
• simulated returns suggest clients should earn a higher return from a portfolio of ETFs because an ETF can never underperform the index.

There are very few drawbacks to ETFs, but one that may occur is:

• ETFs are naturally subject to the “Index Affect” which accentuates market trends (i.e. securities that are gaining in value are given a higher weight in the index and an ETF must, therefore, buy more of them to maintain a correct weighting.  This process can drive the price of a security even higher - or lower in the case of out-of-favour securities - than underlying fundamentals would suggest is appropriate.)

Cougar Global’s tactical asset allocation strategy mitigates the latter drawback because our process is driven by macroeconomic trends, not stock market trends, and our track record suggests that economics anticipates changes in market trends.

FEES

Are there fees that Cougar Global Investments charges in addition to the management fee?

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Cougar Global’s quoted fee is a fee for service rather than a commission based fee structure.  Our fees are inclusive of all asset mix changes, financial planning (for clients with >$500k), as well as all withdrawals or deposits by electronic funds transfer (directly to your bank account) and cheques issued by Cougar Global in both U.S. and Canadian dollars.
* A service charge may be incurred if a request is made for a service that Cougar Global Investments does not provide and has to go to a third party supplier.

An annual custody fee of 0.16% will be charged by RBC Dexia Investor Services quarterly.  This fee is subject to change.

INCOME REQUIREMENTS

How does Cougar Global manage my account if I have income requirements?
What if I need income in an emergency?

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Cougar Global maintains a money market weighting in all accounts.  Accounts are rebalanced as necessary to provide for immediate known income requirements, and monitored on an ongoing basis to provide for future known income requirements.

INVESTMENT TIMEFRAME

When I give money to Cougar Global how soon does it get invested?

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As soon as a custody account is opened at RBC Dexia Investor Services, funds received are deposited within 24 hours of receipt.  Canadian dollar deposits will be invested in the Money Market fund within one business day of receipt after which they will be fully allocated on the next rebalancing date.  U.S. deposits over $250,000.00 will be invested in a term deposit until the next rebalancing date.  Rebalancing occurs monthly.

OTHER ADVISORS

Am I able to invest with Cougar Global and still work with my advisor(s)?

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Cougar Global is pleased to work with you and your trusted professional advisors.  Often a client will include their tax, estate planning or legal advisor in our telephone and/or personal meetings.  For clients who have accounts of 500k or greater, a full financial plan will be available by one of our trusted Financial Planners. 

REBALANCING

What causes an account to be rebalanced?

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Regular rebalancing occurs once a month or under the following circumstances:

• A change in the current outlook for global capital markets
• A receipt of funds from clients
• A request for a withdrawal of funds (one time request or monthly remittance)
• A change in client circumstances
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RRIF

How does Cougar Global work with me to manage my RRIF?

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Cougar Global employs two Certified Financial Planners who will calculate your annual minimum required withdrawal, and will work with you to determine the frequency with which you wish to receive income.  We then electronically transfer funds directly to your bank account.  You do not need to worry about cheques in the mail, or having to make a trip to the bank to cash your cheque.

SCHEDULED WITHDRAWALS

Is it possible to set up a scheduled withdrawal from my Cougar Global Investments portfolio?

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Yes, clients may receive funds from their portfolio on a monthly, quarterly, or annual basis.  We currently make these payments on the first or 15th of the month.

TAX REPORTING

How does Cougar Global support my tax-reporting requirement?

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Our custodian, RBC Dexia Investor Services provides all tax reporting forms required by Canadian Revenue Agency.  Cougar Global also provide Preliminary Capital Gains reports well before year-end to allow you to facilitate pretax planning with your accountant.  Cougar Global also works very closely with various tax and legal experts, and we are available to assist with client questions, and provide information on tax planning opportunities.

TRADING

Cougar Global, working with a broker, trades ETFs for clients to get the best price and best execution.

TRANSFERS

How do I transfer money to Cougar Global?

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There are three ways that you can choose to transfer assets from existing accounts to Cougar Global.

1) You can liquidate your current holdings and provide us with a cheque/cash
2) You can temporarily transfer in kind stocks, bonds or mutual fund holdings for sale and investment in the Cougar Global platform
3) You can do a combination of both of these methods