Question 1

Why should I choose Frontwater as my wealth management firm?

Accepted Answer

Choosing Frontwater means choosing a firm built entirely around your best interests. As a fully independent, fiduciary investment counsel that is paid only through transparent fees, we are obligated, both legally and philosophically, to put your needs ahead of our own. We do not sell products, earn commissions, or participate in referral arrangements. Our advice is unbiased, transparent, and driven solely by what will best serve your goals over the long run.What sets us apart is the depth of personalization. We take the time to understand your objectives, values, constraints, and aspirations, then build a disciplined strategy tailored specifically to you. No model portfolios, no product shelf, no approach that treats everyone the same. Every portfolio is designed from the ground up based on your goals, risk capacity, tax situation, and time horizon.We also believe great wealth management is a partnership. We work closely with your accountant, lawyer, and other advisors to ensure every part of your financial life is aligned. Our internal investment committee provides oversight, qualitative research, and disciplined risk management at an institutional level, the same rigor applied to pension plans and endowments.Above all, clients choose Frontwater for the relationship: consistent communication, proactive guidance, and a lasting commitment to helping you build, protect, and transition wealth with clarity and confidence.

Question 2

How do you decide which strategy is right for me?

Accepted Answer

We start by getting to know you, not just your assets, but your goals, timelines, obligations, and the level of risk you’re truly comfortable with. This includes a detailed review of your financial objectives, projected needs, liquidity requirements, and any constraints that matter to you or your family. We also look at your past investing experience, your tolerance for volatility, and the role your portfolio needs to play in your broader financial picture.From there, we build a clear investment profile that guides the portfolio’s structure: how much growth you need, how much stability you require, and how to balance the two over time. This is not a template generated from a questionnaire. It is a thoughtful process modeled on institutional standards, designed to ensure your portfolio is aligned with your goals from day one, and reviewed regularly as your life evolves.

Question 3

How do you determine my investment profile?

Accepted Answer

Your investment profile is the foundation of everything we build, so we take the time to get it right. It captures the core inputs that shape your portfolio: your return objectives, your time horizon, your liquidity needs, and the difference between the risk you are willing to take and the risk you can actually afford. We look at your full financial picture, including income, obligations, other assets, and any constraints that matter to you or your family.From there, we translate that profile into a clear, written framework that guides how the portfolio is constructed and how much growth, stability, and income it needs to deliver. The profile is not a static questionnaire result. We revisit it as your circumstances change, so the portfolio stays aligned with your life rather than a snapshot from the day you signed on.

Question 4

How do you manage risk and volatility in client portfolios?

Accepted Answer

We manage risk and volatility through a disciplined, layered approach. Diversification across asset classes, sectors, and geographies forms the base, supported by ongoing monitoring and rebalancing to keep the portfolio aligned with your objectives. Where appropriate, we use hedging tools, including options, to smooth the path of returns, establish attractive entry points, take profits opportunistically, or provide downside protection during periods of elevated risk.Risk management is not something we do once. It is built into every stage of our process: portfolio construction, security selection, placing assets in the most tax efficient accounts, and continuous oversight by our internal investment committee. The goal is simple: reduce unnecessary volatility while keeping you on track toward your long term goals.

Question 5

Do you build active portfolios with individual stocks?

Accepted Answer

Yes. The core of an active Frontwater portfolio is almost always individual stocks because that’s where we express conviction, manage risk with precision, and tailor the portfolio to the client’s objectives. Individual securities are selected one by one for their fundamentals, valuation, tax efficiency, and role within the overall strategy. This is true active management, not a model portfolio of pre-packaged products. Each position is chosen deliberately, with a clear purpose and a defined thesis.

Question 6

Do you believe in passive management, such as ETF only portfolios?

Accepted Answer

Frontwater is one of the few firms that does not treat active and passive investing as opposing philosophies. We do not believe you must choose one or the other. The right approach depends entirely on the client.Indeed, for many clients, ETFs can play a supporting role inside an actively managed portfolio, giving efficient exposure to broad markets, sectors, or areas where single name coverage is not practical. For others, an ETF only portfolio is the most appropriate solution, offering simplicity, diversification, and cost efficiency.Both approaches can coexist within the same mandate when it serves the client’s goals, tax situation, and risk capacity. What matters to us is not whether a position is “active” or “passive,” but whether it’s the best instrument for the job. Every portfolio is built intentionally, with a clear rationale behind each holding.

Question 7

How do you handle taxes within the portfolio?

Accepted Answer

Tax efficiency is engineered directly into the portfolio design. In a perfect world, Canadian dividend-paying equities sit in non-registered accounts where the dividend tax credit applies; fixed income, corporate bonds, and GICs are held inside registered accounts (RRSPs and TFSAs) where interest is sheltered; and foreign-dividend ETFs are placed in RRSPs where U.S. withholding tax can be recovered.In practice, cash doesn’t always land in the ideal account at the ideal time, and we occasionally need to bend these rules. But the framework remains the same: every decision is made with after-tax outcomes in mind.

Question 8

Do you do financial planning as well as investment management?

Accepted Answer

Yes. Investment management without a financial plan is just picking securities. We build a written plan covering retirement projections, cash flow, registered-account contribution strategy, tax planning, and (for business-owner families) corporate structure. The plan informs the portfolio; the portfolio is reviewed against the plan annually.

Question 9

How often should my financial plan be reviewed?

Accepted Answer

At least annually, and any time something material changes — sale of a business, retirement, inheritance, marriage or separation, the birth of a child, a move across borders. The plan is a living document, not a one-time deliverable; we revisit assumptions, projections, and the portfolio’s alignment with the plan at each review meeting and update it in writing when the picture shifts.

Question 10

What account types can you manage?

Accepted Answer

All standard Canadian account types: RRSP, Spousal RRSP, TFSA, RESP (Family and Individual), LIRA, RRIF, LIF, Margin, Cash, Corporate non-registered, Trust accounts, Estate accounts, and ITF (in-trust-for minor) accounts. We handle the related paperwork — beneficiary forms, successor-holder designations, CESG and CLB grants on RESPs, RRIF and LIF minimum-withdrawal calculations — as part of the mandate.

Question 11

Do you work with non-resident Canadians?

Accepted Answer

Yes. We work with many Canadians who live abroad or expect to become non residents. Non resident clients face a unique set of tax, regulatory, and portfolio construction considerations, from departure tax planning and withholding tax rules to how different jurisdictions treat investment income, retirement accounts, and estate exposure. We structure portfolios with these cross border realities in mind, ensuring your investments remain appropriate, tax efficient, and aligned with your residency status.We also coordinate with your accountant and other advisors to help ensure your Canadian accounts, global assets, and long term plans work together smoothly. Whether you are temporarily abroad or permanently relocating, we can manage your Canadian investment accounts and provide the same disciplined, fiduciary oversight you would receive if you lived here.

Question 12

Do I need to worry about U.S. estate tax if I’m not an American?

Accepted Answer

Potentially, yes. You don’t need to be a U.S. citizen, hold a green card, or live in the United States to be exposed to U.S. estate tax. What matters is whether you own U.S.-situs assets, most commonly shares of U.S. companies. Holding Apple, Microsoft, or a U.S.-listed ETF directly counts even if those shares sit in a Canadian or other non U.S. brokerage account. The location of the account does not change the situs of the asset.For non U.S. persons, the estate tax exemption is only about US$60,000, and the tax rate on amounts above that can be up to 40%. Fortunately, Canada currently has a tax treaty with the United States. In 2025, the exemption was approximately US$13.99 million. What this means in practice is that if a Canadian’s worldwide estate is less than the full U.S. exemption, the treaty often eliminates U.S. estate tax entirely, but only if the estate files the return.*Most countries do not have a U.S. estate tax treaty to soften the impact, which means many globally mobile investors can unknowingly leave their heirs exposed to U.S. estate tax, along with the administrative friction of an IRS filing before assets can be released.*Frontwater Capital does not provide tax advice, and these rules change from year to year. Please confirm how they apply to your situation with a qualified professional accountant or cross-border tax advisor.

Question 13

How do you avoid conflicts of interest?

Accepted Answer

At Frontwater, avoiding conflicts of interest isn’t a slogan — it’s built into our structure. We operate as an independent, fee-only investment counsel, which means our sole obligation is to act in your best interest. We do not sell products, earn commissions, or participate in revenue-sharing arrangements that could influence our recommendations.Your assets are held with a reputable, third-party custodian; we never take custody of your money, and we cannot access it. Our compensation is transparent and straightforward, based on a fee-for-service model — not transactions, not product sales, and not incentives tied to specific investments.We also coordinate with your accountant, lawyer, and other professional advisors to ensure your broader financial picture is aligned and free of competing agendas. Every decision we make is driven by one standard: what is best for you.

Question 14

Do you work with my accountant, lawyer, or other advisors?

Accepted Answer

Yes. We believe your financial life works best when all of your advisors are aligned. We regularly coordinate with your accountant, lawyer, and any other professionals you rely on to ensure your investment strategy fits seamlessly with your tax planning, estate planning, and broader financial objectives. This collaboration helps avoid gaps, overlaps, and unintended consequences, and ensures every decision is made with a full understanding of your overall situation. Our role is to be the steady point of coordination so your entire advisory team is moving in the same direction.

Question 15

How often will I hear from you?

Accepted Answer

At minimum: a detailed quarterly portfolio report and a formal review meeting at least annually. In practice, more — for any meaningful change to your situation (sale of a business, retirement, inheritance, change in family circumstances), a same-week call. You will always have direct phone and email access to your portfolio manager — not a call centre, not a ticket queue.

Question 16

What kind of reporting do I get?

Accepted Answer

Quarterly portfolio reports show every holding, every transaction, year-to-date and since-inception performance, and a breakdown by account and asset class. The custodian sends statements monthly (or when there’s activity). At year-end you receive a consolidated package for your accountant including all tax slips, gain/loss summaries, and fee summaries. You can also log in to the custodian portal at any time to see live positions.

Question 17

I already have an advisor — what’s involved in switching?

Accepted Answer

For most clients, less than they expect. We coordinate the transfer in-kind so positions are not unnecessarily sold (avoiding triggered capital gains), prepare and submit the transfer-out forms with your prior institution, and reconcile the cost-base information once everything lands. We’ll handle the conversations with your current advisor if you prefer not to. Most transfers complete in 2–4 weeks.

Question 18

What should I bring to the introductory call?

Accepted Answer

Nothing formal is required for the first call — it’s a conversation, not an audit. If you’d like the call to be more productive, gather the most recent statement for each investment account (RRSP, TFSA, RESP, non-registered, etc.), a rough sense of your annual income and expenses, and the short list of financial goals or concerns that prompted you to reach out. If we move forward, we’ll work through a more detailed fact-find together during onboarding.

Question 19

Do you engage in open-ended mutual funds?

Accepted Answer

No. Our company prohibits the sale of open-ended mutual funds, which tend to carry expensive trailer fees and high management expense ratios. We charge our investment clients on a fee-only basis.

Question 20

Do you use ETFs?

Accepted Answer

Yes. We regularly incorporate low-fee ETFs into client portfolios, but always with intention, never by default. At times, ETFs play a supporting role inside an actively managed portfolio, giving efficient exposure to broad markets, sectors, or areas where single-name coverage isn’t practical. In other cases, the right solution is an ETF-only portfolio, built for simplicity, diversification, and cost efficiency.Because we’re independent and not tied to a bank product shelf, we can choose the best instrument for each part of your strategy: individual securities where active management adds value, and ETFs where they’re the superior tool. The mix is shaped by your goals, tax situation, and risk capacity, not by templates or model portfolios. Every ETF we use has a purpose. Nothing is accidental.

Question 21

Do you use option strategies?

Accepted Answer

Absolutely. Frontwater is fully licensed to trade options on behalf of our clients, and options are one of our core competencies — a capability you won’t find at many bank-owned dealers. Option strategies enable us to establish attractive entry points on a particular stock, dollar cost average down, and institute profit taking at opportunistic times. Other times, the right option strategy calls for insuring portfolios against a potential market disaster. Layering on a protective put is a tax-efficient strategy designed to mitigate volatility without making drastic changes to the overall portfolio.

Question 22

Do you offer GICs?

Accepted Answer

Yes. Through our long-standing partnership with the GICdirect platform (since 2010), we shop the entire brokered-GIC market — 30+ federally or provincially insured issuers — for the best available rate at every deposit and renewal. GICs are integrated into your overall portfolio, laddered across maturities, and structured to maximize deposit insurance across multiple issuers. There is no separate fee for the GIC service.

Question 23

Who regulates Frontwater?

Accepted Answer

Frontwater is registered with the Ontario Securities Commission as a Portfolio Manager. This is the same registration category held by independent wealth-management firms across Ontario, and a more fiduciary-oriented framework than the IIROC/CIRO regime that governs bank-owned brokerages.Please note that Frontwater is also registered with the Alberta Securities Commission and is licensed to invest on behalf of clients there.

Question 24

How long has Frontwater Capital been around?

Accepted Answer

Frontwater Capital was founded in 2007 and has been registered with the Ontario Securities Commission as an Investment Counsel & Portfolio Manager since 2009. We work primarily with Toronto-area families, entrepreneurs, and executives, and have been quietly building a small, intentional client roster for more than a decade and a half.

Question 25

Are you a fiduciary?

Accepted Answer

Yes. As a Portfolio Manager registered with the OSC, Frontwater is required by law to act in each client’s best interest. That obligation is higher than the “suitability” standard that historically applied to bank-employed advisors. In practice it means we cannot recommend an investment because it pays us better, we cannot place our own interests ahead of yours, and we are accountable to the OSC for both.

Question 26

What’s the difference between an Investment Counsel / Portfolio Manager and a bank investment advisor?

Accepted Answer

A Portfolio Manager has discretionary authority to invest your money according to a written Investment Policy Statement you agree to up front — no per-trade phone calls, no “we’d like to recommend this” pitches. A bank advisor typically operates on a transactional basis, often selling proprietary mutual funds, and is paid through embedded product commissions rather than a transparent advisory fee. The registration categories, fiduciary obligations, and compensation models are fundamentally different.

Question 27

Is Frontwater affiliated with any bank, mutual fund company, or insurance company?

Accepted Answer

No. We are an independent, owner-operated firm with no parent company and no product affiliations. We do not sell mutual funds, segregated funds, insurance products, or any third party’s house-brand securities. This independence is what lets us build portfolios from the entire universe of listed securities on merit, not on what we’re paid to recommend.

Question 28

Are your fees tax-deductible?

Accepted Answer

Advisory fees on non-registered (taxable) accounts are generally deductible as a carrying charge under Canadian tax rules. Fees on registered accounts (RRSP, TFSA, RRIF) are not. Your custodial reporting separates the two so your accountant has what they need at tax time. We’re not tax advisors — confirm specifics with your accountant.

The questions clients ask before they call.

The best FAQ is a conversation.