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Canadian investors have been following a variety of recent debates about the structure of the advisor/client relationship. I’m going to cut to the chase quickly.
If you seek core qualities and competencies from your investment professional, such as the following list, you need to conduct some research. Your mission is to find a way to hire a “discretionary” portfolio manager (DPM) for your ongoing wealth management needs.
Get started by asking yourself just what it is that you want. Make a simple list for your situation, then go shopping. You will have a better experience.
I highlight today’s top client requests for consideration:
- A professional who listens and acts as a fiduciary for the finances.
- Processes where the client’s best interests are always placed first.
- Advice on retirement, risks, investing, estates, income tax and family business.
- A second opinion on the current portfolio.
- The professional fee is fully disclosed and transparent.
- The investment management fee is deductible for taxable accounts.
- There are no hidden costs.
- The DPM is independent, not affiliated with institutions or products.
- Top priority for the DPM is risk management.
- The DPM designs, implements and monitors the long term investment plan.
- The “discretionary” designation is the highest attainable.
- The advice is objective, unbiased, without conflicts of interest.
- The DPM uses low-cost, tax-friendly investment selections.
- The DPM is “fee-only,” paid only by clients.
- Client portfolios managed by the DPM are held by separate custodian.
- Clients receive transaction confirmations and statements of accounts from custodian.
Minimum fee and/or account may apply. Portfolio managers typically consider family accounts as a group; thus, overcoming minimums.
This philosophy provides clients and their families peace of mind. Such a comprehensive service is fully available today.
I find that investors who write out their wealth management wish list make better decisions. It’s much easier to spot a good fit with a professional knowing the qualities you want.
Professional services from a DPM are thorough and customizable to client needs. They deliver unique values.
If you have the need, begin your search for a DPM who can provide you value. (Yes, I have described the service available from our team of three “discretionary” portfolio managers.)
Adrian Mastracci, Discretionary Portfolio Manager, B.E.E., MBA at Lycos Asset Management, started in the investment and financial advisory profession in 1972. He graduated with the Bachelor of Electrical Engineering from General Motors Institute in 1971, then attended the University of British Columbia, graduating with the MBA in 1972.
