There are more investment management programs available for Canadians today than ever before. There are now several different opportunities for investors to diversify their portfolios through managed programs, which used to be designed only for the wealthy investor in North America. Larry Herscu wrote a book entitled The Canadian Guide to Managed Accounts (WRAP Publications, January,2004), which gives Canadians true insight into some of the leading-edge diversification programs available to investors.
Understanding the benefits of these programs comes down to a few simple tenets.
First, if almost 90% of your return comes from diversification of your assets–for example, by asset class, geography, market capitalization, and investment style, portfolio-managed programs may be for you.
Second, rebalancing your portfolio to market conditions to in the best possible way takes a team of expert managers. The rebalancing is what most investors are missing.
Third, teams of professionals and pension style managers–who manage millions for pension plans and private institutions–can be accessed today. They can manage your money in the same manner that successful pension plans are managed.
Finally, you get three sets of eyes-looking over your portfolio–the investment manager(s), the portfolio rebalancing and review team, and your advisor. They will all be working to make sure you have ongoing, appropriate diversification. With several portfolio options from which to choose in Canada, managed programs are helping more Canadians invest in programs that are tailored for them. Find out or ask about managed programs. Remember to read and review the simplified prospectus, appropriate merits, and disclaimers, of each program.
The shortest way to do many things is to do only one thing at a time. – Richard Cech
Published with permission from Grant Hicks