Frequently Asked Questions

Learn more about our investment solutions, security measures and specific services offered to wealth managers and private individual investors
  • What are the Obsiido Portfolios?

    Obsiido Portfolios refers to Obsiido Alternative Income Portfolio and Obsiido Alternative Growth Portfolio. Each Obsiido Portfolio is an investment trust established under the laws of Ontario. Each Obsiido Portfolio issues “units”, and each investor subscribing for units is referred to as a unitholder. Each unit essentially represents an investment in, and an interest in the net assets, of the relevant Obsiido Portfolio.

    Obsiido Alternative Investments Inc. acts as the investment fund manager, trustee and portfolio manager of the Obsiido Portfolios. It is registered as an investment fund manager in Ontario and a portfolio manager and an exempt market dealer in Ontario, Alberta and British Columbia. The firm is a wholly owned subsidiary of Obsiido Capital Management Ltd.

    As a result, the Obsiido Portfolios would be referred to as “proprietary funds”. At this time, we exclusively offer proprietary funds.
  • How will the Obsiido Portfolios seek to meet their objectives?

    To meet its objective, each Obsiido Portfolio will invest its assets primarily in underlying funds or other investment vehicles managed by third-party alternative investment managers. The returns of the Obsiido Portfolios are subject to the risks of the Underlying Funds and the assets in which the Underlying Funds invest.
  • How is an underlying fund selected for investment in an Obsiido Portfolio?

    A number of factors are considered prior to allocating to an Underlying Fund including the following:
    • reputation and performance track record of the third-party manager; and
    • objective, investment philosophy and strategy, fees and expenses, risks and liquidity characteristics of the underlying fund.
  • Are the Obsiido Portfolios considered public funds?

    The Obsiido Portfolios are not public investment funds or reporting issuers under applicable Canadian securities laws. No public market is expected to develop with respect to the units in the future.
  • Who are the key personnel responsible for managing the Obsiido Portfolios?

    The Portfolio Management Team consists of our CEO, Nimar Bangash, and our CIO, Sean O’Hara
  • What are the tax implications of investing in Obsiido Portfolios?

    Investing in the Obsiido Portfolios may have tax implications, including capital gains and other tax obligations. We recommend consulting with a tax professional to understand the tax implications of your investments based on your individual financial situation and jurisdiction.
  • What are the management fees for the Obsiido Portfolios?

    The annual management fee is 1.00% for Series A Units and 0.50% for Series F Units. Management fees are exclusive of applicable taxes. Management fees are paid to Obsiido for providing investment fund management and portfolio management services.
  • What are the performance fees for the Obsiido Portfolios?

    There are no performance fees.
  • What are the administration fees and operating expenses of the Obsiido Portfolios?

    The annual administration fee is 0.30% (plus applicable taxes) for each Obsiido Portfolio. Administration fees are paid to Obsiido for bearing most of the operating expenses of the Obsiido Portfolios. There may be some operating expenses borne directly by the Obsiido Portfolios. The Obsiido Portfolios will also indirectly bear the fees and expenses of any underlying funds in which they invest.
  • How often can the Obsiido Portfolios be purchased?

    The Obsiido Portfolios can generally be purchased on the first day of each month. This is referred to as a “Subscription Date”. The Obsiido Portfolios are offered on a continuous basis.

    Subscription requests should be submitted at least 12 business days prior to a Subscription Date (otherwise they will be processed on the next Subscription Date). Additional information about the subscription process is set out in the Offering Memorandum for the Obsiido Portfolios and a schedule of applicable dates can be found here: Check out Link.
  • How often can the Obsiido Portfolios be redeemed?

    The Obsiido Portfolios can generally be redeemed on the last business day of each calendar quarter. This is referred to as a “Redemption Date”. You can request to redeem either some or all of your units. Redemption requests should be submitted at least 30 business days prior to a Redemption Date (otherwise they will be processed on the next Redemption Date). Additional information about the redemption process is set out in the Offering Memorandum for the Obsiido Portfolios and a schedule of applicable dates can be found here: Check out Link.
  • Are there any redemption fees?

    If you redeem your units within 12 months of your subscription, you may be subject to a 3% early redemption fee (plus applicable taxes). If you redeem your units within 13 to 24 months of your subscription, you may be subject to a 2% early redemption fee (plus applicable taxes).
  • How often are the Obsiido Portfolios valued?

    The net asset value (NAV) of the Obsiido Portfolios will be calculated by a third-party fund administrator and will generally be calculated each month. The NAV is expected to be available 30 business days after the month-end. Additional information about the valuation process is set out in the Offering Memorandum for the Obsiido Portfolios and a schedule of applicable dates can be found here:Check out Link.
  • When will the redemption proceeds be processed?

    Redemption proceeds are generally expected to be paid in cash and will generally be paid within 35 business days after the applicable redemption date. Additional information about the payment of the redemption proceeds is set out in the Offering Memorandum for the Obsiido Portfolios and a schedule of applicable dates can be found here: Check out Link.
  • What is liquidity? Are the Obsiido Portfolios liquid?

    Investors often describe the speed and ease with which an asset can be sold and converted into cash as its liquidity. Some assets are inherently less liquid than others due to the nature of the asset, the demand for the asset and the extent to which the market for the asset is developed. An investment in the Obsiido Portfolios provides limited liquidity unlike traditional publicly listed stocks and bonds. The units of the Obsiide Portfolios are subject to transfer restrictions; can only be redeemed on a quarterly basis; may be subject to a suspension of redemption; and are subject to advance notice requirements for redemptions. Further, the Obsiido Portfolios will primarily be investing in Underlying Funds, which are also generally considered to have limited liquidity for the same reasons as the Obsiido Portfolios.

    As such, the Obsiido Portfolios are suitable only for investors who do not require a liquid investment and are able to bear the financial risk of the investment for an extended period of time.
  • Is there a lockup period?

    No, there is no lockup period (i.e. you are not required to hold your units in the Obsiido Portfolios for a minimum period of time). However, as the Obsiido Portfolios are meant to be a long-term investment, you will be charged an early redemption fee if you redeem your units within two years of your subscription. The applicable fees are disclosed in the Offering Memorandum for the Obsiido Portfolios.
  • Is there a redemption limit or redemption gate?

    If a large volume of redemptions are received for any applicable redemption date, there may be a limit on the amount of cash redemptions that the Obsiido Portfolios can fulfill. As each Obsiido Portfolio invests substantially all of its assets in underlying funds, the Obsiido Portfolio’s ability to satisfy the payment of redemptions in cash may be limited to the extent such underlying funds limit the payment of redemptions in cash. Typically, these limits are known as redemption gates and are triggered to protect a fund and its remaining securityholders. A gate functions as a brake on the pace of redemptions. By slowing the redemptions, the gate should reduce the impact on the fund’s portfolio value, liquidity, and concentration of investment positions. Additional information about the redemption gate applicable to the Obsiido Portfolios is set out in the Offering Memorandum.
  • What is Obsiido?

    Obsiido is a technology enabled investment management firm that specializes in researching, structuring, and enabling investments in core alternative investment opportunities within private markets and hedge funds.

    Obsiido provides Wealth Managers such as wealth advisors, portfolio managers and investment counsellors with streamlined access to alternative investment strategies managed by leading global and Canadian investment managers by offering turn-key multi-manager, multi-asset-class investment solutions that invest within private equity, private debt, private real assets (infrastructure, real estate, farmland) as well as hedge funds.
  • Where is Obsiido registered?

    Obsiido Alternative Investments Inc. is registered as an investment fund manager (“IFM”) in Ontario, and a portfolio manager (“PM”) and exempt market dealer (“EMD”) in Ontario, British Columbia, and Alberta.
  • What Products & Services does Obsiido offer?

    Today, Obsiido offers two investment funds through Fundserv – Obsiido Alternative Growth Portfolio and Obsiido Alternative Income Portfolio. Additionally, Obsiido offers custom alternative strategy development services, which can be structured as investment funds or accessed via model portfolios.

    In the near future, Obsiido will be rolling out a wealth manager focused digital platform that will reduce administrative and compliance challenges associated with allocating to, and administrating, alternative investments. The platform will enable asynchronous consumption of education/information, digital subscription/redemption completion, the ability to setup push notifications for key date reminders and tools and calculators providing insights on investing into a variety of alternative investments.
  • Why should I work with Obsiido?

    We believe we offer a compelling and highly distinct suite of products and services in the Canadian market. Below we outline a few key reasons to consider partnering with Obsiido:

    1. Domain Expertise: Obsiido’s investment personnel have decades of combined experience researching, structuring, and managing alternative investment solutions that span private markets and hedge fund asset classes. Additionally, Obsiido has partnered with a leading investment consulting firm to support Obsiido’s in-house investment management team through the provision of independent due diligence and capital markets expertise.
    2. Independence: As an independent investment management firm, Obsiido focuses on identifying and allocating to the best available alternative investment strategies and managers, globally.
    3. World Class Managers: Obsiido portfolios will allocate to investment strategies offered by leading alternative asset managers, globally. These managers have historically only been accessible to large institutional and ultra-high-net-worth investors. Through Obsiido, private wealth will have unprecedented access to institutional quality investment strategies across private markets and hedge funds.
    4. Ease of Access: Allocating client capital to alternative investments is a highly complex, specialized, and time-consuming undertaking. Every aspect of the process from sourcing through to subscribing requires dedicated, expert resources. Obsiido undertakes these activities so wealth managers don’t have to. Wealth managers simply need to determine whether or not alternative investments are suitable for their clients and Obsiido handles everything else.
    5. Canada Focused:Obsiido is a Canadian company led by former Bay Street veterans. We are intimately familiar with the challenges Canadian wealth managers face when allocating to alternatives and have designed Obsiido’s products and services exclusively for Canadian private wealth. Our Canadian focus means we will be there for you when it matters most.
  • What is Obsiido Direct?

    Obsiido Direct is our online platform, which allows you to open an account for the purpose of investing in the Obsiido Portfolios. You’ll need to complete your onboarding process via Obsiido Direct. Among other things, Obsiido Direct will provide access to your documents and account statements, and allow you to place requests to add or withdraw funds into/from your account, review account activity and account performance, as well as provide updates to us about your personal information and financial circumstances. Obsiido Direct does not offer any non-proprietary funds or third-party securities for purchase at this time.
  • How do I open an account with Obsiido?

    If you are interested in opening an account with us, please request an invitation.
  • What documents and information will I need to complete the onboarding process?

    To complete the onboarding, you will need to answer questions regarding your personal and financial circumstances, as well as provide a form of ID for your identity verification, and your banking information. Acceptable forms of ID are a driver’s license from any Canadian province/territory; Canadian passport; Canadian permanent residence card; provincial or territorial photo ID card; and secure certificate of Indian status.

    All personal, confidential information we receive from you will be treated in accordance with our Privacy Policy.
  • Who is eligible to invest and open an account?

    At this time, only individual investors resident in Ontario, British Columbia or Alberta can request to open an account. We are working hard to make our solutions available to others.
  • What are the minimum eligibility criteria?

    Among other things, investors will need to have at least $250,000 in net financial assets and be willing to invest a minimum of $25,000. Our solutions are only suitable for investors with an investment time horizon of at least 5 years, investors who do not need immediate access to invested capital in the event of an emergency, and investors who are comfortable with the risks associated with alternative investments.
  • What are net financial assets?

    Net financial assets = your liquid assets minus any liabilities related to your liquid assets.

    Liquid assets are generally easy to convert into cash. These include cash, stocks, bonds, GICs, and mutual funds. This does not include your primary residence or other real estate.

    Liabilities related to your liquid assets would include any liabilities that (i) are secured by the liquid assets or (ii) were assumed to acquire the liquid assets. This would not include credit card debt or other long-term debt.
  • What is “suitability” and how is it assessed?

    As a portfolio manager, Obsiido has an obligation to take reasonable steps to ensure that, before it makes a purchase or sale of a security for your managed account, the purchase or sale is suitable for you. To meet this suitability obligation, we collect “know-your-client” information from you as part of the onboarding process. This includes information about your personal circumstances, financial situation, investment goals and objectives, investment horizon, investment knowledge and experience, and helps us make a determination regarding your risk profile. The last step in the onboarding includes a call with one of our advising representatives. This allows us to gather additional information before making a suitability assessment.

    All personal, confidential information we receive from you will be treated in accordance with our Privacy Policy.
  • What is the relationship between Obsiido and its clients?

    If you open an account and enter into an investment management agreement with us, we will manage your account in our sole discretion. Obsiido, as a fiduciary, will put your interest first when making an investment decision in your account.
  • What is Obsiido’s fiduciary duty?

    As a portfolio manager, we have a fiduciary duty to act in the best interests of our clients when making investment decisions in their accounts.
  • What fees are charged by Obsiido?

    You will not be charged fees for your account with Obsiido. None of the below fees are charged to you:

    • fees associated with custody of your account.
    • portfolio management fees to provide advisory services to you and your account.
    • transactional charges that may otherwise be associated with a trading account (such as trading commissions or brokerage fees).
    • embedded commissions for investing your assets into the Obsiido Portfolios.

    Instead, you will pay fees and expenses as an investor in the Obsiido Portfolios. Any fees and expenses that will be borne by you (directly or indirectly) as a result of investing in the Obsiido Portfolios will be included in the investment management agreement you enter into with us. At this time, the maximum annual management fee charged on the Obsiido Portfolios is 1.00% (plus applicable taxes).
  • What is Obsiido’s approach to data security & privacy?

    At Obsiido, we place substantial emphasis on ensuring our clients cash, investments and personal and financial data is always secure in accordance with industry best practices. We maintain comprehensive controls, policies & procedures covering a broad variety of security & privacy related matters.

    With respect to client cash and investments, Obsiido has partnered with National Bank Financial (“NBF”) acting through its National Bank Independent Network (“NBIN”) division, a leading provider of trade execution, custody and brokerage solutions. NBF is an indirect, wholly owned subsidiary of National Bank of Canada, which is a federally regulated Schedule A bank.

    NBIN is responsible for the custody of Obsiido Direct client accounts as well as the custody of Obsiido Portfolios, including all cash and traded securities. All assets are safeguarded. NBIN is regulated by the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (“CIPF”), which means your assets may be insured, subject to certain limits, in the event of an insolvency.

    With respect to the security and privacy of client data, Obsiido has been extremely thoughtful during (i) the development of its systems by adopting best practices with respect to system and data security (as further described below); and (ii) third-party service provider vendor selection and integration. Among many other security measures that we have taken, Obsiido Direct requires multi-factor authentication for login, all data is encrypted both in transit and at rest, and all data is stored locally with a leading cloud provider.

    Additional information about our privacy practices and your privacy rights are set out in our Privacy Policy.