Investment Manager Search, Evaluation, & Monitoring

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Role of Investors Choice

Finding the best organizations to invest your assets is one of the most important financial decisions you will have to make. It is also one of the toughest. The right manager and portfolio for someone else may not be right for you. You will be bombarded with promotional pitches and inundated with figures, charts and statistics. All too often, you cannot even believe what is presented to you. For example, performance statistics are filled with potential traps and are often riddled with less than honest disclosure. Mistakes can be very costly. You can always fire a manager or pull out of a fund, but liquidating costs added to the sum of cumulative investment losses easily mount up. The emotional penalties of poor investment decisions are also considerable.

Why are we qualified to guide you safely though this investment jungle? For several years we have helped investors like you make their way through the daunting maze of personal investing. Just as there is skill in making money for yourself, there is skill in designing a portfolio and asset allocation that is right for you. Furthermore, there is skill involved in finding, retaining and nurturing superior investment management.


What differentiates us?

• Independence and objectivity
• We conduct primary research on the money managers across Canada. We interview, score and maintain a proprietary database on Canada’s Money Managers.
• Our managing director is a licensed public accountant whose CPA, CA practice specializes in investment performance verification.
• Assistance with identifying custodians or discount brokers to hold your investments and execute your trading instructions.

Investors Choice: Investment Manager Search, Evaluations and Monitoring Services - Key Benefits:

• Guidance in developing an investment policy statement and asset allocation
• Counsel on appropriate asset allocation
• Identification of suitable investment managers and funds

• Analysis of investment manager performance history, investment style, management fees
• Identification of cost effective custodians and / or discount brokers to hold your assets and execute your trading instructions.

Asset allocation impacts 91% of total investment return

• Selecting the most appropriate asset allocation given your risk tolerance and time horizon will have the most influence on your overall investment return.
• Asset allocation has far more impact than market timing and security selection efforts.
• Asset classes behave differently. Asset classes and mutual funds with low correlations and high returns are what we seek.

Asset Class Weightings Determine Investment Results

- Source: Brinson, Singer and Beebower – “Determinants of Portfolio Performance II: An Update”; Financial Analyst Journal, May – June 1991, data: 1977-1987

Professional, Independent and Objective Investment Management Assistance

• Our services in the investment management industry give us insight on the pulse of the investment management industry. We bring these talents to bear on each private client’s situation. In most cases we are the tax accountant for clients we work with.
• State-of-the-art analysis tools for asset allocation, risk profile and fund managers.
• We conduct primary research by interviewing (in-depth) over 80 of Canada’s money managers and maintaining their scores on a proprietary database.

How does it work?

Our approach combines eliciting critical financial and lifestyle information from our clients, and applying a rigorous process using our proprietary database, state of the art technology and professional judgment to each client’s particular situation. We are similar to the relationship that the client would have with their doctor or lawyer, as we work on behalf of our client only. We receive compensation only from our client.

What is the process?
Using information obtained from the client we establish the following:

• Investment Orientation
• Risk Assessment
• Time Horizon

• Tax Situation
• Investment Manager Criteria


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Report Issuance and Candidate Managers identified - Once the investment orientation, risk assessment and investment manager criteria is established, we meet with the client to review a report that summarizes the results of this process and our recommended approach. This allows the client to ask any questions, evaluate whether they agree with the findings and make any adjustments. In this report we will generally identify a suitable investment approach, along with suggested investment managers. We may suggest splitting the assets among more than one investment manager to achieve diversification of varying investment management styles. Using our knowledge of the investment management industry, we “short list” investment management candidates and provide information and analysis to assist our private clients in evaluating and ultimately selecting a suitable investment manager(s) to execute the investment policy statement.

Investment Manager Interviews - Subsequent to our report we identify a short list of investment managers for client consideration. Generally, three to five investment managers are identified. Clients may wish to interview all, or only specified managers. To assist in this selection we prepare an analysis that highlights salient information on each investment manager. This service is available only for mid-sized or larger accounts.

Post Meeting Process - Subsequent to the client interviews an investment manager(s) will be selected. If the client wishes to see additional investment managers we will continue our efforts and propose additional candidates until the client reaches a comfort level. Investment Policy Statement – We assist the client in establishing an investment policy statement that will define the guidelines on how the investment manager must manage the clients’ money. Our asset allocation service assists a private client in determining the appropriate asset mix for an investment portfolio by incorporating analysis of the private client’s investment orientation, risk profile and tolerance, time horizon, and tax situation. The goal of the asset allocation program is to produce an investment policy statement (IPS) that reflects an appropriate asset mix, concentration and allocation by asset class and investment management process and style.

Ongoing Monitoring and Evaluation - We offer a monitoring service to clients wishing an ongoing review and comparative analysis. This service is customized to suit each client. Clients receive quarterly Investors Choice reports reviewing performance in comparison with specific benchmarks, other fund managers and economic conditions.

Fees and Compensation Arrangements

Asset Allocation Fee, charged at inception

Entry level accounts - up to $60,000, generally consisting of one RRSP account- $400
• minimum on-going annual monitoring fee $400

Intermediate accounts - usually one or more accounts with assets ranging from $60,000 to $130,000- $750

Mid-sized accounts - usually one or more accounts and assets ranging from $130,000 to $1.0 million- $1,300

Large accounts - generally assets exceeding $1.0 million and use of outside discretionary manager through either a pooled fund or segregated asset accounts

Corporate or Pension accounts - generally assets exceeding $5.0 million and use of outside discretionary manager through either a pooled fund or segregated asset accounts- $10,000

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Ongoing Monitoring Fee, charged in arrears
We offer ongoing investment management monitoring that includes continuous and formal quarterly reporting on a client’s consolidated invested assets, whether the invested assets are within the asset class ranges outlined in the investment policy statement, the performance over short, medium, and long terms of the investment manager, or fund. Typically, we also report to clients on administrative matters concerning account issues, utilizing excess cash and coordinating withdrawals.

Entry level accounts - up to $60,000. Minimum on-going annual monitoring fee $400

Intermediate accounts - usually one or more accounts with assets ranging from $60,000 to $130,000. Minimum on-going annual monitoring fee $750

Mid-sized accounts - usually one or more accounts and assets ranging from $130,000 to $1.0 million. Minimum on-going annual monitoring fee $1,300

Large accounts - generally assets exceeding $1.0 million and use of outside discretionary manager through either a pooled fund or segregated asset accounts. Minimum on-going annual monitoring fee $2,500.

Corporate or Pension accounts - generally assets exceeding $5.0 million and use of outside discretionary manager through either a pooled fund or segregated asset accounts. Minimum ongoing annual monitoring fee $10,000.

Why Choose Us?

• Working with a professonal ensures an investor does not become their own worst enemy by buying high and selling low
• Expertise drawn from our CPA, CA practice conducting performance verifications for the investment management industry
• Unbiased Advice

• Experience
• Information & Technology
• Affordable
• Personal Financial Planning & Tax Knowledge