The Credit Union Fund Management Company is the wealth management arm of the Jamaica Credit Union Movement. The CUFMC is owned by the Jamaica Co-operative Credit Union League Ltd. (JCCUL) and 14 Jamaican Credit Unions. An experienced Board of Directors guides our operations and an experienced and competent staff complement handle the day-to-day affairs. The CUFMC is licensed by the Financial Services Commission of Jamaica (FSC) as a Securities Dealer, Pension Fund Manager and Administrator. We are uniquely positioned to provide a wide range of investments opportunities, denominated in the major currencies that benefit all our clients
CUFMC offers products and services that will assist each client to achieve his/her financial goals. In addition, CUFMC is committed to maintaining high levels of service at all times and based on our expertise, we are able to invest your money at attractive rates of interest.
Successful wealth creation requires an intimate understanding of the financial markets. While you may not have the time or the expertise to keep up the dynamic bond, money and stock markets, our in house team monitors the financial markets both locally and overseas. Any of our Business Development Representatives will be able to provide you with timely relevant information that will help you build the optimal investment portfolio for your wealth objectives.
The CuCash account holders invest in a pool of investments. Each investment may have a different interest rate and investment period. As each investment matures and is replaced by a new one (which may have a higher or lower rate), the average rate in the portfolio changes.
Yes, you may benefit from a reduced rate of taxation upon approval from the Taxpayer Audit and Assessment Department (TAAD) in Jamaica. The rate applied will be dependent on the double tax treaty existing between your country of residence and Jamaica. For more details contact the TAAD.
Under the Jamaican Law, you may apply for exemption from withholding tax. This will be applied to your accounts, upon written authorization from the Tax Audit and Assessment Department (TAAD). For more details contact the TAAD.
…because you receive dedicated portfolio management for your investments through changing market conditions. Explosive growth in investment products, coupled with increasing market complexities, can make navigating today’s dynamic and demanding investment landscape a full time job. One way to respond to this and position your investments for changing market conditions is to employ the services of a full-time, professional money manager for your accounts.
CUFMC’s portfolio managers are fully qualified professionals who are licensed to manage investment portfolios on a discretionary, non-discretionaly or partial discretionary basis and advise clients. A Portfolio Manager is a specialized investment professional who provides money management services. To be qualified as a Portfolio Manager, extensive academic and practical investment research experience is required. A Portfolio Manager will design and manage an investment portfolio that is consistent with the client’s financial goals, including long-term capital appreciation, current income requirements, risk tolerance, and tax minimization Portfolio management is a fee-for-service business. Fees are charged as a percentage of the asset value of each client’s account, thereby aligning the interests of both parties. These fees are a source of revenue for the CUFMC.
Investors may need the services of a Portfolio Manager if they are too busy to research and manage their own investments, if they are unable to earn a satisfactory return through their own efforts, or if they do not wish to manage their own investments.
A client portfolio is always managed by one of the CUFMC’s Portfolio Managers. All of our Portfolio Managers are part of the Asset Liability Committee, which is responsible for investment analysis and portfolio management. This responsibility ensures a close relationship between CUFMC’s investment process and an individual client’s unique requirements.
An informed investor is a successful investor. Successful wealth creation requires an intimate understanding of the financial markets. While you may not have the time or the expertise to keep up the dynamic bond, money and stock markets, our in house research department spends each day monitoring the financial markets both locally and overseas. Any of our portfolio managers will be able to provide you with timely relevant information that will help you build the ideal portfolio for your wealth objectives. Visit our web page for more information
Portfolio management service can be used by an investor who wants to invest in the local,, regional and international financial and stock markets. These investors can benefit from local, regional and international’s economic growth, even though the do have the necessary time, knowledge or experience to do so.
Portfolio management serrvice is more transparent than a Mutual Fund as the stocks, bonds, etc purchased are in your name. The cost structure of the managed portfolio service is also more competitive and thus give you the opportunity to make higher returns.
While a Mutual Fund is open to everybody, the managed portfolio service is more selective and the minimum amount needed to invest is higher. It is meant for more sophisticated investors looking for exponential returns.
Invest with someone who philosophy of investing matches your outlook. If you believe ilong term investing on the basis of knowledge, don’t invest with a fund manager who believes in daily trading and speculation.
Your financial representative will provide you with a folder that includes program brochures, disclosure documents, portfolio management agreement and the Client Agreement for your review and signature – as well as any other necessary paperwork such as transfer forms or custody forms. Investment advisory services begin on the date that the account is accepted by CUFMC and initially allocated into the management positions. You will receive a letter from us which indicates the date on which portfolio management services started. This is your notice that management services have begun. Until you receive this notice, you should not assume that management has begun. Clients may contact CUFMC at any time to inquire on the status of their account.
Yes you are. However, if you are domiciled outside of Jamaica, you may be eligible for a reduced rate of taxation. The rate is determined by the taxation treaty, which exists between your country and Jamaica. Country Rate United States 12.5% Canada 15% The United Kingdom 15% CARICOM 15%. Please contact our portfolio manager advisor for other countries.
Should your risk profile or investment objectives change, notify us or your portfolio manager immediately. With written instructions, you can change your program type selection without interrupting our management services.
We usually provide the Taxation Summary Reports to our clients within two to three months following the 31 March financial year. The major factor in the timing of these reports is governed by the speed the issuers of the underlying investments provide their final tax details to our custodian and investment administrators. From our experience the longest delays relate to proportionate ownership property investments schemes, due to their own audit requirements.
The Taxation Summary Report we provide includes the details required on the investments in your portfolio that are subject to the Foreign Investment Fund (FIF) regime. This includes the calculation of the total taxable income under both the Comparative Value (CV) and the Fair Dividend Rate (FDR) methods. This allows either you or your accountant can select the most advantageous method for the current financial year.
Due to the very high level of service and effort we commit to each of our client relationships, CUFMC requires a minimum value of US$$50,000 or the Jamaican equivalent. However, if you are contemplating retirement in the foreseeable future or are awaiting other future financial events, we encourage you to talk with us, we are certainly able to be flexible under the right circumstances.
CUFMC follows a conservative investment philosophy, focusing on blue chip value investments. We perform original and exhaustive research and only invest in safe but high yield investment instruments, companies that we believe have earnings stability, financial strength, and dividend growth potential. We combine these instruments and companies into a well-diversified portfolio.
CUFMC follows a long-term buy and hold philosophy. We will sell companies only when our opinion of the earnings stability, financial strength and dividend growth potential of a company becomes unfavorable. We do not sell companies based on short-term market fluctuations.
An Investment Profile/policy Statement is a document that is agreed between the investor and CUFMC at the start of the relationship and is reviewed on an annual basis. The Investment Profile/Policy Statement allows the investor to describe Investment Objectives, Income Requirements, Tax Considerations, and Other Investment Considerations that will be used by CUFMC to guide the creation and ongoing management of the portfolio. For larger corporate clients a Investment Policy Statement will be developed and agreed.
CUFMC offers its portfolios in segregated client accounts principally for fixed income securities in the Central Securities Depository (CSD) operated by the Bank of Jamaica.. Overseas assets are held in our client accounts at our overseas brokers.
CUFMC provides reporting on the portfolio and all transactions. CUFMC reports all purchase and sale transactions to a client as they occur and provides a periodic statement which reports portfolio holdings, along with purchase and sale transactions, interest and dividend income and other account activity during the month.
The fee is a percentage of the portfolio assets we manage directly for you. The fee rate is dependent upon the total size of the relationship and the types of assets we manage for you. Typically the average annual fee rate is between .01% to 2.0% and is deducted from your accounts on a quarterly basis. Under a percentage of assets arrangement, our earnings are dependent on the value of your portfolio, and our motivation is the same as yours – to protect and enhance the value of your portfolio. We do not charge or receive any form of commission based fees. This arrangement puts us on the same side of the table as our clients and eliminates potential conflicts of interest.
The tiered-fee structure of the program means that the percentage fee you pay decreases as your investments in the program grow. In addition, fees are based on your total investments in the program, which can include RBC Managed Portfolios accounts held by you, your spouse, child or even your personal holding company – as long as all of the accounts share the same address.
CUFMC Management manages client investment portfolios on either a discretionary basis, non-discretionary or partial discretionary basis. This process starts with preparation of an Investment Profile, which describes Investment Objectives, Income Requirements, Tax Considerations, and Other Investment Considerations. Based on the parameters in the Investment profile, a portfolio of stocks, bonds and short term investments is designed. The portfolio is purchased and is subject to continuous monitoring to ensure that it is consistent with both the Investment Profile/mandate and any other expectations of the investor.
CUFMC does not receive any brokerage commissions, sales incentives or other benefits from any company. Our only source of revenue in relation to your portfolio, is the Management Fee ensuring that the greatest source of conflicts of interest has been removed from the relationship.
No, CUFMC is compensated solely by our asset management fee on the accounts we manage directly. This fee is inclusive of all the services we provide. We believe incorporating the necessary financial planning/forecasting and financial advice regarding pension or other outside counts is essential to the comprehensive wealth management strategies we provide for our clients. This enables our clients to set up meetings or calls whenever necessary to advance their financial goals, and also includes consultations you may want us to have with your CPA or Attorney.
These relate to the level of latitude that the portfolio manager has in managing the portfolio. With non-discretionary mandate, the portfolio manager has to get the approval of the client for all investment decisions, etc. While for discretionary, the portfolio manager can made investment decisions on behalf of the client based on the clients investment profile and the manager’s expertise. Under partial discretion, the portfolio manager has the ability to make decision in areas that are clearly articulated while the client has to be consulted before decision are made in agreed designated areas The essence is income maximization according to the preferred level of risk.
There are two different commissions that are collected from discretionary portfolio management clients. • Management Commission: In discretionary portfolio Management, the management fee is calculated on the total value of the portfolio managed daily and is collected on the first business day of the following quarter. • Performance Commission: A certain peat of the income obtained in excess of the benchmark defined at the end of performance period is collected as “performance commission” at the end fo the performance period
Any guarantee of income has been prohibited by the Securities Act. Consequently, no income is guaranteed for a certain period of time in the future. However income obtained in the past and their comparison with other investment instruments may be issued in reports.
At CUFMC we analyze every new client’s portfolio individually. We study the current asset allocation, discuss your goals, and then formulate a detailed game plan for every single position. We take the time to listen to your needs and tailor our strategies to your objectives. With any available cash, we overlay the opportunities that are most attractive from the positions we own for our existing clients. This way, highly appreciated positions with less than ideal risk-to-reward characteristics are left aside, and only the opportunities that will complement the current asset mix are recommended. In addition, we talk about how we would implement risk management strategies on your portfolio moving forward.
At our firm, communication with clients is a top priority. That is why we offer annual portfolio reviews, quarterly update calls from our executive team, and an exclusive client memo that is mailed to you each month. In addition, we regularly send all of our clients performance reports so that you can review the progress of your account and we email you any time we make a change to our portfolio allocations. You should never feel like you are out of touch with our strategy or your account, but in the event that you do, please don’t hesitate to call our offices directly and speak with a principal of the firm. We make ourselves available to you to answer any questions. Our phone number is (876)-926-7767.
Yes. We often work with clients that have children who are just getting started in their investing endeavors or other family members that need assistance with their accounts. We treat the entire family as a single household so that you get the benefit of the lowest fee possible. We can manage each family member or account in a different portfolio according to their risk tolerance and objectives.
Yes! We have clients spread out all over the country, with the majority located outside of Kingston. We overcome this small obstacle by adhering to a strict communication plan, thereby keeping our clients informed of exactly what is happening with their accounts or any changes to our strategies.
There are several ways that you can add money to an account that we manage. You can either send a cheque, or complete a wire transfer of funds directly to CUFMC. The portfolio manager will provide you with the relevant account numbers for the respective banks. In addition, you can visit our office in Kingston to drop off a cheque. Make sure that you make the check payable to the name of the Credit Union Fund Management Company Limited, and write your account number and name on the cheque. You also can send a cheque to our offices.
There are two methods of accessing cash in your account: 1) If there is cash available in the account, you can request a cheque or electronic transfer directly to your bank account. 2) If we need to free up cash by selling securities, then please call our offices at (876) 926-7767 and we can make those adjustments and send you a form to distribute the amount of funds you require. Keep in mind that if we need to sell positions, there is a three day settlement period for all securities transactions in the account before the cash is made available for distribution.
We will review your investment objectives on an annual basis to make sure that your assets are properly positioned to meet your risk tolerance and goals. In some circumstances, clients may want to switch from a more aggressive to a more conservative portfolio (or vice versa). If this is the case, we encourage you to call our offices to review your objectives and determine if another portfolio may be better suited to your needs. We will then send you a Change of Investment Objectives form that will need to be signed and returned to our offices to before we make any changes. Remember that it is up to you to inform us in writing of any changes to your investment objective.
The term “financial advisor” is used to describe a number of investment intermediaries including retail stockbrokers and mutual fund and insurance representatives. The remuneration of many financial advisors is based on transaction commissions from selling a wide selection of financial products and services managed by others. Commission-based remuneration has been known to orient portfolios toward higher levels of investment churn, which do not necessary produce client value but always produce tax consequences. The educational credentials can also be dramatically different.
During the beginning of your relationship with CUFMC, and at regular following intervals, we will meet to discuss your investment objectives and long-term goals. With this information, a strategy will be put in place through an Investment Profile (for Individuals) and an Investment Policy Statement (IPS) for institutional investors that will act as a guideline for the discretionary management of your account by CUFMC. Individual investment decisions are then made by CUFMC, including rebalancing when required to meet your stated objectives and risk tolerances. The advantage of discretionary management is that you maintain control through your IPS and we execute your strategy through attentive long-term management.
Our clients receive personal portfolio updates from CUFMC quarterly showing net asset value, portfolio holdings and asset mix. We also encourage formal portfolio reviews between our clients and their CUFMC portfolio manager on a regular basis – and of course, we are available for consultations upon request.
Primarily by selecting and managing the right combination of high quality local and globally focused international stocks and bonds, chosen to deliver long-term, tax efficient returns geared to the individual needs and objectives of each client. We do this by using our experience, proven investment process and one-on-one wealth management consulting approach.
With a segregated portfolio developed by CUFMC, each client has a unique portfolio, designed and managed separately from other client accounts to achieve specific personal objectives.. Capital gains and losses are managed on a client-specific basis. With pooled funds, the assets of many investors are pooled together and the individual owns fund units. Unlike segregated portfolios, pooled funds can result in unintended tax consequences. In addition, pooled funds cannot be customized to unique requirements.
Yes. CUFMC does invest in foreign markets, primarily the USA. The level of investment is restricted by the guidelines from the Bank of Jamaica (BOJ). At this time CUFMCs primary equity focus is on high-quality, blue-chip North American stocks. On average, U.S. corporations have demonstrated a higher profitability level than any other country when measured on a return-on-equity basis. We believe that U.S. multinationals provide an effective and lower-risk investment vehicle for obtaining international diversification. The companies we select are usually international leaders in their markets, are always financially strong and adhere to rigorous financial reporting and disclosure standards. We can also invest in selected non-North American companies through American Depository Receipts.
CUFMC’s typical portfolio turnover has been very low, averaging less than 15% per annum. As background, portfolio turnover measures the percentage of the portfolio’s equity securities that is sold and replaced with other securities. Over the long term, low portfolio turnover provides tax benefits because fewer taxable capital gains are generated. High portfolio turnover that is associated with some actively traded portfolios results in the generation of higher taxable capital gains and higher transaction costs. High portfolio turnover does not necessarily enhance portfolio performance but does significantly increase costs.
As is the requirement of the FSC, client funds must be backed by securities. CUFMC has relationships with many of Jamaica’s leading depository (CSD, JCSD) and brokerage firms in the case of equities. As the word implies, the custodian holds the securities in safekeeping and has the specialized resources to offer this service. The custodian, does not, however, have any authority to make day-to-day investment decisions. These decisions are the responsibility of the portfolio managers at CUFMC.
Generally speaking accredited investors include investor’s resident to Jamaica who have a certain minimum income or financial asset level. In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following: 1. earn an individual gross income of more than J$10,000,000 per year in each of the last two years and expect to reasonably maintain the same level of income. 2. have a net worth exceeding J$50 million, 3. Be a senior officer of a financial institution
As a licenced securities dealer, CUFMC takes direct custody of all of our client’s funds. We act based on the mandate we have to structure a portfolio consistent with the agreed asset allocation strategy. We maintain relations with other securities broker, the Jamaica Stock Exchange, the Central Securities depository (CSD) Most of the local financial instruments are store in the CSD maintained by the Bank of Jamaica (BOJ) consistent with the requirements laid down by the Financial Service Commission (FSC). Overseas securities are generally maintiained ant one of our overseas brokers (currently Morgan Stanley and Oppenheimer)
Yes. We start each client relationship with at complimentary consultation where you will have the opportunity to ask questions and learn more about how we work with clients. If we both determine it looks like we are a good fit for each other, we will set up another meeting to gather detailed information required to help set up your accounts, discuss specific recommendations for your investment portfolio and any other recommendations on how to improve your financial situation.
Due to our critical focus on asset management, we do not directly offer tax, estate planning or legal services. However, we do address tax and legal considerations when analyzing our client’s investment situation and routinely coordinate implementation of our recommendations with our client’s CPA or Attorney.
No. There are no exit fees or any other strings attached when you hire us. We prefer to maintain our clients by delivering a level of service and performance that exceeds expectations, rather than relying on exit penalties.
You will receive monthly statements from your account custodian, as well as quarterly portfolio holdings and performance reports from. We are also able to provide a wide variety of additional reports (asset allocation, tax reports, etc.) at any time upon request.
The process begins by looking at the big picture: • Your financial needs, Lifestyle, investing preferences, • Investment time horizon and • Tolerance for risk. Based on your investment objectives, your CUFMC Portfolio Manager will recommend an Portfolios investment profile. After selecting your profile, your money is invested in a manner consistent with the asset allocation strategy agreed (depending on the level of discretion afforded to the CUFMC.).
CUFMC manages your investments in accordance with the risk and investments profile you select. The investment profiles are monitored closely to ensure they remain suitably invested and properly diversified. The CUFMC Asset Liability Committee, (ALCo) comprising a team of top investment professionals at CUFMC. The committee meets monthly to formulate a detailed investment forecast. This forecast is used to determine the appropriate mix of investments for each CUFMC Managed Portfolios investment profile.
In addition to reviewing your periodic statements and portfolio holdings with CUFMC, you can stay up-to-date through: • periodic meetings (at minimum) with your portfolio manager, on a schedule that is comfortable for you • This web site, which provides updates for market activity, the economy and the investment profiles • Your comprehensive quarterly statement, which outlines your account holdings, the activity that has occurred, and a personalized rate of return • The quarterly Investment newsletter which accompanies your statement.