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 cumulated 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 your-self,
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.
How?
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 clients 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 - This takes into account the clients financial & lifestyle plan and is the basis for determining
the basic investment orientation. This could be either growth, income, or balanced, along with the suitable investment
time horizon.
Risk Assessment - Risk has various meanings to different people. We ask each client to assess a number of factors
and situations, with appropriate weightings and scores to establish a risk assessment that clients consider appropriate.
The assessment determines ranges and weightings in portfolio asset allocation.
Investment Manager Criteria - Investment Managers, like all of us, are unique and are often strong on particular
dimensions sometimes at the expense of other areas. We have formally interviewed most of Canada's leading money
managers and have established a knowledge & database that scores each money manager on a number of critical
dimensions crucial to providing investment management.
Report Issuance - Once the investment orientation, risk assessment & 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.
Investment Manager Interviewing - 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.
We will set up meetings with the investment managers and accompany the client to these meetings if they wish.
Furthermore we can probe the investment managers, or supply clients with what we believe to be appropriate
questions.
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
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. For these services, Investors Choice Financial Management Ltd. is compensated by an asset allocation fee. This fee is based on actual time spent. Account size does directly correlate to the time we spend performing our services. As your investment portfolio grows, so does its complexity. A large portfolio should take advantage of both geographic and investment management style diversification. Additionally, as your portfolio grows in size, the universe of investment manager options increases since managers and funds can be held that meet minimum asset size restrictions.
- Entry level accounts - up to $60,000, generally consisting of
one RRSP account
- 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.
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 maximizing their foreign content, utilizing excess cash and coordinating withdrawals. For these services Investors Choice Financial Management Ltd. is compensated by way of a monitoring fee. This fee is based on
actual time spent. Account size does directly correlate to the time we spend performing our services. As your investment portfolio grows, so does its complexity. A large portfolio should take advantage of both geographic and investment management style diversification. Additionally, as your portfolio grows in size, the universe of investment manager options increases since managers and funds can be held that meet minimum asset size restrictions.
- Entry level accounts - up to $60,000, generally consisting of
one RRSP account
- 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.
Why Choose Us?
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