Michael Prittie, Portfolio manager, senior financial advisor, Mandeville Private Client

Firm: Mandeville Private Client
Position: Portfolio manager, senior financial advisor
Years in wealth management: 31
Years as a portfolio manager: 5
Certifications: CFP, CIM, CPCA, FSCI, CIWM

With more than three decades in wealth management to his name, Michael Prittie’s views on the markets carry some weight. One of the first advisors to earn the Certified International Wealth Manager [CIWM] designation in Canada, the Mandeville PM also holds CFP, CIM, CPCA and FSCI designations. Clearly, enhancing his abilities as a portfolio manager is a priority for Prittie, but he feels there are certain aspects of the job that are holding him and his peers back.

“Government and regulators seem to want to be involved in everything we do these days,” he says. “The problem with some rules is the law of unintended consequences. Take accredited investor rules: While they do not affect me and my clients, given my registration, they effectively shut out 97% of residents from participating in strategies that create and preserve wealth.”

This goes against the principle of making financial advice available to everyone. Both Prittie and his firm, Mandeville Private Client, are adamant that those barriers to entry need to be removed.

“If pension plans and the rich can utilize proven strategies and quality sources, is the goal of the private investor really that different?” he says. “Surely there should be some leeway for the average investor to play in the same sandbox.” 

That sandbox, in this case, is private and alternative investments, which Mandeville specializes in. As market volatility increases, investors need to make sure they are protected from downturns. A solid fixed income exposure would have provided such balance in the past, but investing is much more complex today, which is where PMs like Prittie stand out.

“If pension plans and the rich can utilize proven strategies and quality sources, is the goal of the private investor really that different? Surely there should be some leeway for the average investor to play in the same sandbox”

“The vast majority of clients desire exposure to non-correlated asset classes to offset equity declines when they occur,” he says. “My [investment policy statement] reflects the client’s risk tolerance, time horizon and tax situation, and drives the asset mix and selection process. To augment traditional fixed income, I select quality private/alternative income strategies that provide stable, predicable 6% to 10% annual income yields. I tend to favour these income strategies in registered accounts where annual taxation is not an issue.”

Of course, equities still make up the majority of any portfolio, and Prittie prefers not to limit himself when choosing stocks, instead investing wherever the best value is. 

“In my opinion, there has always been a home bias for Canadians,” he says. “However, our market is so small in the global context that I really try to encourage participation in the US, Europe and other mature markets. Dominated by resources and financials, we don’t have the opportunities that exist elsewhere – manufacturing and industrials are examples.”

Prittie encourages 50% in foreign markets, either developed or emerging.

“Certainly, within the long term, silo emerging market exposure can provide higher potential returns through capital growth that offset inflation and defer taxation in a cash account,” he says. “Discussions revolving around geopolitical events, foreign currency, access to information and variability are all on the table when considering this higher-risk strategy. However, for many, the risk-return ratio is acceptable and the additional diversification desirable. ”