Why More Millionaires Choose Professional Investment Management

When a software entrepreneur who sold his business for $30 million first approached us to manage his money, he told us, “I am hiring you because I don’t want this money to manage me.”  

He’s not alone. 

40% of Canadian millionaires use an investment counselor as their primary financial advisor – compared with 70% of deca-millionaires who do.

The greater your wealth, the more likely you are to hire a professional to invest it. 

Investment counselors (sometimes colloquially called ‘money managers’ or ‘asset managers’) are given discretion by the client to manage his/her assets according to a stated set of investment objectives and risk parameters.  Investment counselors charge a fee for their services, generally a percentage of the assets under management.  Because of the magnitude of the responsibility, only certain professionals and qualifying firms are licensed to perform this role.   Newport Partners is a licensed investment counselor and as such is governed by the Ontario Securities Commission.

What you can expect from professional asset managers:

  • Strategy: Your investments will be managed based on the expectations and objectives you establish with the investment counselor
  • Expertise: Your investments are managed by professionals who hold the industry’s highest designation of Chartered Financial Analyst designation, which also requires they abide by a strict code of ethics
  • Personal attention, as the client-to-advisor ratio is typically low
  • Potential cost savings, as typically lower cost than mutual funds
  • Freedom from having full-time, day-to-day responsibility of managing your portfolio; it’s in the hands of professional investment experts

Professional investment management is not for people who:

  • Like to ‘play the market’ or enjoy the day-to-day business of managing their money, or
  • Like to make big bets on a concentrated number of investments

If you’re wondering if you have the right investment advisor, download our white paper on 'Hiring an Investment Advisor: 10 Compelling Criteria'.