Purposeful Portfolio Construction
Newhaven Asset Management Inc. is a leading Canadian investment management firm dedicated to providing advisory services within a separately managed account structure. Independent and employee-owned, Newhaven offers unbiased advice and exceptional service from an experienced portfolio management team.
Newhaven’s Portfolio Managers employ a fundamental investment approach to deliver a stable and sustainable total return stream through changing market environments. Portfolios are primarily composed of high quality, dividend-paying securities, where share prices are measured against the sustainability and potential growth of the dividend income stream. Over time, the income produced by the portfolio represents a significant portion of the expected total return, leaving less emphasis on stock price performance.
Our focus on the quality and sustainability of the securities selected produces portfolios designed to provide superior risk-adjusted returns over the long term. Risk is primarily controlled through security selection, leading to an efficient portfolio with a similar risk level, but higher expected return profile than a balanced portfolio, where risk is primarily controlled through asset mix decisions.
Newhaven strives to produce a tax-efficient portfolio for each client. Selecting high-quality businesses with sustainable, competitive advantages allows for minimal portfolio turnover, deferring capital gains taxes indefinitely in some cases. Additionally, dividends are maximized relative to interest income, which is taxed at higher rates.
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Newhaven is keenly focused on working with clients to help them achieve their financial goals. Each client has a unique financial situation and Newhaven’s Portfolio Managers seek to ensure our clients' individual objectives are addressed by their portfolio construction. Above all else, Newhaven wants to be known as a firm that deeply cares about our clients and we show this through an exceptional level of service and objectivity.
One of our key differentiators is the initial consultation and review process. Clients are strongly encouraged to participate in the shaping of their portfolio. Our Portfolio Managers meet with each client to discuss their current circumstances and future goals, then use these considerations to construct a personalized portfolio.
Regular update meetings and ongoing communication ensure that clients are always up to date with portfolio and market developments. Newhaven strives to connect our clients to their portfolio to gain trust in our process when markets turn sour and stay conservative when markets are overly exuberant. We feel this leads to a higher success rate for clients and an exceedingly high retention rate.
Unfortunately for many investors, a significant portion of their investment returns are reduced over time by transaction costs and unreasonable management fees. Newhaven takes every measure to minimize transaction/custody costs and maintains minimal management fees that never exceed 1%. Management fees are tax deductible for taxable accounts. Newhaven seeks to defer and offset capital gains taxes within portfolios wherever possible, as this can significantly enhance returns for clients over time.
"We want to be known as a firm that cares deeply about our clients and we show this through an exceptional level of service and objectivity"
At Newhaven, we measure our success through the success of our clients meeting or exceeding their financial goals. Newhaven is an owner-operated firm, free from biases and conflicts of interest. We construct portfolios by purchasing a specific group of securities with a specific purpose in mind. Ideally, each company purchased could be held indefinitely, owing to successful results and dependable total return generation. We strive to work with our clients in the exact same way.
"We are extremely appreciative of the care and respect that Newhaven has given us with regard to our financial affairs, especially given the sometimes difficult market environments we have been dealing with in the past decade." — Retired Physician
"Returning to Canada after a 20 year absence, I realized that I was totally out of touch with Canadian capital markets, despite being a former fund manager myself. I wanted a manager that had complete integrity, prioritized client interests and charged reasonable fees, while generating steady returns with a minimum amount of risk. Newhaven has provided for my needs over the last 15 years and I wholeheartedly endorse them." — Retired CEO of the US Investment Banking Division for a Big Five Canadian Bank
"We recently moved our assets from elsewhere and have been very pleased with Newhaven. The level of communication and clarity are terrific, which is great for us as we are not overly knowledgeable in the world of finance. Responses are prompt and we get steady reporting of everything that is going on. Our accounts are performing well and we are very pleased to be working with this firm" — Screenwriter