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For Immediate Release
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| Adrian Mastracci, president
of KCM Wealth Management says "The investment
counsel professional has emerged as a primary
source of investment advice." |
Vancouver, BC (October 15, 2001): Several
changes have taken place in the investment world
in the last two decades.
Adrian Mastracci, president
of Vancouver based KCM Wealth Management
comments, "In particular, a new category
of investment professional has emerged as a primary
source of investment advice. That professional
is known as the investment counsel and investors
have responded well to their services."
"My definition of investment counsel is
a professional who designs, invests and manages
portfolios according to clear and well-defined
investment criteria for each client," says
Mastracci, "An investment counsel has no
affiliation with products or financial institutions.
Thus, no products are sold."
Mastracci offers these comments on selecting
an investment counsel:
- The services of an investment counsel are
available to private individuals, small businesses,
family trusts, charitable foundations, institutional
portfolios, and pension funds.
- An investment counsel does not receive any
compensation or commissions for the buying or
selling of securities.
- An investment counsel does not have a bias
in selecting the appropriate portfolio securities.
- This objectivity is often the most attractive
feature for investors in choosing an investment
counsel as their investment professional.
- Investment counsel fees are generally calculated
as a percentage of the market value of the portfolio.
- Most investment counsel fee schedules reduce
as the size of the portfolio grows.
- These fees are deductible for tax purposes,
provided they meet certain criteria.
- An investment counsel is registered with
the provincial securities commissions.
- The registration is based upon distinct qualifications
for both education and experience that the applicant
must meet to become registered.
- Becoming investment counsel requires at least
five years experience in portfolio management.
- The investment counsel handles all facets
of asset allocation decisions and the selection
of the appropriate securities - be it for the
equities, bonds and cash components of the portfolio.
This applies both to the registered (i.e. RRSP,
RRIF, DPSP, RESP) and the non-registered (i.e.
personal, corporate) client portfolios.
- The primary role of the investment counsel
is to meet the unique investment needs of each
client. Hence, the first step is to determine
the nature of the objectives, which leads to
developing the portfolio strategy and policy
that captures the client requirements.
- This process results in the creation of the
investment policy statement specific to each
client, also known as the investment blueprint.
Building your home and your investment portfolio
have one common thread; things go far better
when you start with a blueprint for each.
- The investment counsel may liaison with the
client's accountant, lawyer, banker and other
professionals to design the investment plan
that addresses all aspects of the client's unique
situation. This is especially important where
the client wishes to undertake estate planning
and estate freezing techniques.
- After the portfolio is implemented, the investment
counsel monitors the portfolio and reports to
the client on a quarterly basis. The main purpose
is to ensure that the client portfolio remains
within the established parameters and to rebalance,
as deemed appropriate.
"So where do you find them? They are listed
in the yellow pages under categories such as investment
advisory or investment management," notes
Mastracci, "Of course, you can also obtain
a referral from a colleague."
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