Maybe you are a well-versed investor or you are a person who has accumulated savings, inherited or sold your business, and now have a sum of money to manage. You are ready for the next level of investment management but you are not quite sure what that means. One thing is clear, the concept we describe has certainly prevailed above all others. This process is used by corporations, pension plans, trusts, endowments and high net worth individuals and viewed as the only proven way to meet their long-term investment objectives.

When corporations and organizations hire money managers they seek both strategic investment advice and investment management. They demand a more disciplined approach that relies on an Investment Policy Statement. This formal document details the guidelines for the investment process. Among other things it discusses return objectives as well as risk considerations.

Fiduciary responsibilities are paramount. The money managers are expected to have the highest standards of ethical behavior and formal education. They possess an outstanding long-term performance record and show a keen ability to preserve capital in difficult markets. Typically these managers will outpace the benchmark index by a significant margin over the long run.

Additional benefits include lower fees. Over time this adds up to significant savings. But the reality is that higher minimum investment requirements lead to fewer clients to service, resulting in lower costs and savings that are passed on to clients.

Further still, organizations demand superior reporting. Quarterly statements clearly show rates of return and comparisons to the relevant benchmarks as well as a detailed listing of portfolio contents and include pertinent commentary from the portfolio manager.

So, is this type if investment management out of the reaches for the average investor? Not any more. Thanks to technological enhancements, creative entrepreneurship and demographics, this type of money management is fast becoming accessible to a greater number of Canadians.

Money managers that were once the exclusive domain of those with more than a million dollars to invest can now be accessed with as little as $25,000. These sought after money managers are forming strategic alliances with mutual fund companies and offering their services to a wider audience. The retail investor now has access to these high profile investment stars with many of the benefits described.

If you are feeling that your investment portfolio may be lacking something you should speak to your investment planner and find out more about how you too can access these and other services that were previously unavailable to the general public.

This is a monthly article on financial planning. Call or write to Rick Sutherland CLU, CFP, FDS, R.F.P., of Fundex Investments with your topics of interest at 798-2421 or E-mail at rick@invested-interest.ca.