To work effectively with you, we need to establish a relationship based on mutual trust and understanding. To help you learn more about what we do and how we can be of service to you, here are some answers to questions that we are often asked.
What is an investment counsellor?
Investment counsellors are a select group of professionals who provide an exclusive money management service. They must qualify through examination and/or practical experience in order to use this designation. An Investment counsellor will design an investment portfolio for you that is consistent with your financial goals. Your goals may include: preservation of your capital, maximum income, capital growth, minimum risk or lower income tax liability, or some combination of these.
How do you differ from financial planners, mutual fund dealers and stockbrokers?
We are trained to manage your portfolio, not sell you investments. As your agent, we act solely in your best interests, not just when making transactions on your behalf, but every day of the year. Our fees are tax-deductible for taxable accounts, while commissions paid to sales people are not.
What does The RaeLipskie Partnership do?
We manage investment portfolios on a discretionary basis. First, we analyze your goals, objectives and risk tolerance. Then we design a portfolio of stocks, bonds, and short-term investments to meet your specific needs. We implement the portfolio and monitor it constantly to ensure your investments are meeting your expectations.
What do you not do?
We do not take possession of any of your cash or assets. These are handled by your custodian. Many custodians offer efficient and inexpensive accounting, and also handle cash. We receive no brokerage commissions, no sales incentives, or other benefits from acting as your investment counsel. Our sole revenue is the fee you pay us for managing your assets. This removes the greatest source for conflicts of interest.
What are your credentials?
Investment managers must have prior investment experience and possess the CFA® or CIM® designations. They must be registered as an Investment Counsel or Portfolio Manager with the appropriate government authorities.
What is a CFA®*?
The Chartered Financial Analyst (CFA®) designation is awarded to those individuals who have passed three annual examinations conducted by the CFA Institute, and who have also demonstrated proficiency and have practical experience in economic analysis, investment analysis and portfolio management.
*CFA® is a trademark owned by the CFA Institute
What is a CIM®*?
The Chartered Investment Manager (CIM®*) designation is awarded to individuals who have passed the examinations conducted by the Canadian Securities Institute and have achieved at least two years of relevant work experience. These are people who have demonstrated proficiency in economic analysis, portfolio management techniques and investment management techniques.
Who are your clients?
Our clients include individual investors, endowment funds, charitable foundations, corporations, estates and trusts, and retirement funds. Most of our clients have assets in excess of $500,000.
What authority do you have over my assets?
As a client of The RaeLipskie Partnership, you give us the authority to transact purchases or sales of your investments. This authority does not allow us to withdraw money or assets from your account; it simply permits us to invest your monies, or make changes in the individual securities within the account.
What kind of investors are you?
We are conservative investors, interested in preserving your capital after inflation and increasing the value of your assets to provide income now or in the future. Simply put, we prefer to emphasize corporations that have demonstrated an ability to increase their earnings and distribute dividends, rather than in speculative situations. We believe that high quality, diversified portfolios will best serve our clients.
Who will manage my portfolio?
We assign two investment managers to each client’s accounts. Your accounts will be managed by one of the firm’s registered investment counsellors, backed up by another investment professional.
What is your stock selection style? Growth? Value? Or another esoteric style?
We prefer the words “common sense” to serve our clients better.
What access do you have to my assets?
We have no access. We have only the authority to make transactions on your behalf and collect management fees.
How can I be sure my assets are safe?
A bank, trust company, or investment dealer holds your assets segregated in safe custody. Our firm does not take possession of your securities or handle any cash.
How do you earn the fee you charge?
We earn our fees by structuring investments to suit your needs, by taking advantage of investment opportunities, and by improving the rate of return on your portfolio. Successful asset management can also reduce your income taxes and lower your brokerage commissions. This combination normally results in better returns together with an improved level of service at a lower cost to you.
Do you have any conflict of interest that might affect the manner in which you manage my portfolio?
No. Since our compensation does not depend on whether a particular investment is bought or sold, or how often trades occur, we can offer advice that is free from the conflict of interest that a commissioned salesperson, for example, might have. Furthermore, since we are not associated with any other financial institution, our advice is completely objective.
Is this service personal and confidential?
Yes, your personal financial situation remains confidential with us.
How will I be informed about my portfolio?
We prepare a report for you every quarter. As well, you will receive notices of all transactions as they occur. In addition, a statement is sent to you from the financial institution or custodian at the end of each month showing your portfolio holdings and account activity.