Investors who are interested in managed accounts often seek the advice of an investment advisor to select a suitable third party manager. The investor gives an external investment company the authority to manage their account. Our responsibilities as your financial advisors includes:
Understanding your investment objectives and risk tolerance
We have a responsibility to know you as the investor and determine if a managed account is appropriate.
Manager selection
External managers generally provide advisors information on their process and features of the managed account. As investment advisors it is our responsibility to keep current on the available options.
Assisting the investor with the "customized" component
Typical types of customization include Region, Asset Allocation and Capitalization.
Region
- Canada
- United States
- International (includes companies outside of North America)
- Global (all countries)
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Asset Allocation
- Cash
- Fixed Income
- Equities
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Capitalization
- Large Capitalization
- Medium Capitalization
- Small Capitalization
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For example, an investor may choose the following:
- Region: 70% Canada 10% United States 10% International and 10% Global
- Asset Mix: 10% Cash, 25% Fixed Income, and 65% Equities
- Asset Type: 70% Large Cap 15% Medium Cap and 15% Small Cap
There are a variety of possible portfolios.
Ongoing monitoring
As your financial advisor we monitor the performance of the manager (next to appropriate benchmarks and other managers with similar mandates) and report the results to you as the investor. We may recommend changes to the customized component or to the manager itself when appropriate and as agreed upon by you.
Who should consider a managed account?
- Investors who do not want to make ongoing decisions regarding individual equity and fixed income trades
- Investors who would like to reduce the frequency of contact with their financial advisor
- Investors who travel frequently or live in remote areas for extended periods making it difficult to provide timely investment recommendations
- Investors who want access to institutional style money managers
