There is a new trend in the financial services called Private Investment Management (PIM). In fact, this product is offered only to the most wealthy client as there is always a minimum amount to open an account (it could go from 100K to 1M$ depending the institution). I thought I would give you some info as it could be a very interesting product for some of my reader (most like the one who has 100K to 500K unless I have millionaires reading TFB, that would be cool :-D).
Leave your money into the hand of a professional
The main purpose of private investment management is to give mandates to one or a few fund managers to manage your money according to predetermine guidelines.
However, in order to do so, you must leave all decision powers (buy, sell, hold) in the hand of the managers. You always have the possibility to change the guidelines in order to reflect your investment profile.
You get access to the best of the best
Financial institutions offering this type of product will include some of the best portfolio managers of all time. Even better, they are selected based on their specialty (Canadian/American/International stocks, emerging markets, bonds, etc.).
So you end-up with a fully diversified portfolio managed by the best funds managers in their category. On top of that, management fees are cheaper than mutual funds and they are tax deductible for non-registered account!
More options than regular mutual funds
Another characteristic of the PIM is their accessibility to different asset class. Forget about the classic fixed income, Canadian equity and international equity. Now you have access to high paying yield bonds, privilege shares, emerging markets, real assets (bridges, structures and pipelines), tactical deviation and alternative management.
It may confuse you as an investor but your financial advisor should be in a good position to help you out determining what is best for you.
The main goals of Private Investment Management are usually wealth preservation, long term growth and tax efficiency. This is a really good product for wealthy people who don’t want to manage their money but still hope to get a good return.
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