Prospective clients can obtain the names and addresses of investment
counselling firms from industry directories such as "Canada's Money
Managers" or the "Top 40 Money Managers" published in Benefits
Canada, the pension industry trade magazine. Some actuarial firms, such as
Towers Perrin and Watson Wyatt Worldwide, have pooled fund performance surveys
which cover most of the larger managers' pooled funds in Canada.
Smaller clients and individuals also have access to financial planners who
keep tabs on investment managers who specialize in smaller and private accounts.
Accountants and estate lawyers have contacts with investment managers, as many
of their clients use the services of discretionary investment managers.
At lower levels of assets, below $500,000 in a total portfolio, the
prospective client should really use mutual funds, as these are much more
efficient when transactions and custodial costs are taken into account. Investment dealers offer "wrap accounts" which either use pooled funds
or invest client monies in a "model portfolio" approach for a single
asset based fee. These are comparable to mutual funds and can be tailored more
for specific client groups.
Most investment dealers and mutual fund brokerages are familiar with the
investment managers of the various mutual funds available. Some firms, such as
Nesbitt Burns Inc., have investment analysts dedicated to following the mutual
fund industry and are very familiar with both the firms and particular fund
managers. The financial press publishes mutual fund performance on a monthly
basis and provides quarterly analyses of fund holdings. They also have reporters
who follow mutual funds and do special reports on investment counselling firms.
A performance measurement firm, Bell Charts, has a software package available
that your broker might have access to. This has performance statistics on most
public mutual funds.
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