What is a "PIM or Private Investment Management" Account?
The Private Investment Management program at RBC Dominion Securities is one that is fully discretionary, meaning that it is run without the need for ongoing trade approvals from the client. This allows the advisor to efficiently manage the investment capital within the predefined objectives set out in a formal Investment Policy Statement (IPS). It also allows the busy families and institutions that often utilize this program to focus on what is important to them instead of the ongoing minutia of asset management.
The PIM program is only available from a select group of tenured, properly designated (CFA or CIM) advisory teams within the firm. It also involves a much higher legal standard of care than a conventional investment relationship (suitability vs. fiduciary standard), and a number of additional internal compliance screens (e.g. a dedicated Portfolio Risk Advisor) not available in other programs.
Our fully discretionary PIM portfolios are managed for an annual fee (charged monthly or quarterly) based on the assets under administration and the complexity of the strategies being utilized. Because of the larger nature of these mandates, the fees are fully customized to the client. They usually range between .75 and 1.5% of assets under management.
The Benefits of Fully Discretionary Asset Management:
- A fiduciary standard of care
- Direct access to an experienced, properly designated, and specifically selected advisory team within the firm
- The confidence of knowing you will not miss out on key buy/sell or reallocation decisions due to being unavailable to your advisor
- The peace of mind involved with a personalized Investment Policy Statement and a dedicated arm's length risk management team
- A competitive and potentially tax deductible (non registered accounts) investment management fee
- Full transparency and segregated custody of assets within the portfolio (you know exactly what you own)
- The ability to focus on what is important in your life instead of worrying about the administration of your portfolio
