Affluent institutional investors have been reaping the benefits of institutionally managed money for years. Traditional management, advisors choosing a combination of mutual funds, stocks, and bonds, often react to what institutional money is doing. As a result, traditionally managed money under performs and assumes risk when compared to institutionally managed money over time. With best access to information, large teams doing continual research, and the ability to make portfolio adjustments in which the rest of the market reacts to, the ability to invest institutionally in a customized portfolio has been out of reach for most of us as one would need in excess of $50 million dollars to access a single manager where a portfolio should contain several in order to ensure diversified expertise. While this type of money management has been inaccessible aside from the uber wealthy and pensions, RBC Dominion Securities, as Canada’s largest wealth management firm, now has the privilege for their clients to exclusively access this institutional expertise and to do so in a diversified way for clients with $250 thousand dollars or more in investable assets.
Here’s a story: Having been a traditional investing client with his current advisor at a different firm, a soon to be client of RBC sold his business in excess of $100 million. Now this is the touching point when I refer to the uber wealthy above. At this level of net worth, the best institutional money mangers from all over the world fly in on their private jets to wine and dine to the utmost extravagance their potential clients. This is exactly what happened to this particular soon to be client of RBC. Blown away by the depth, the expertise, and experience of all the managers that flew into see this individual, he ultimately settled on four different managers to manage his investable assets. Upon making his first call to a well known international manager and indicating he wanted to allocate $30 million to them, they responded very kindly but ultimately responded, “thanks, but no thanks”. You see while $100 million sounds like a lot to you and me, it’s not in the institutional world where they traditionally manage part of billion dollar portfolios, not million dollar ones. Completely disappointed with the news, this individual was expressing the situation to a close friend whom is an advisor at RBC Dominion Securities. This advisor quickly looked at this individual and said, “collectively at RBC Dominion Securities we manage over $325 billion dollars in assets. Having an understanding that we provide our clients with the best financial planning and estate planning resources in the industry, we wanted to make sure our clients had the same on the investment side. So as a result, RBC has gone out and negotiated with these top institutional managers to allow our clients to access their expertise. Expertise that has been traditionally only available to billion dollar pensions and individuals with hundreds of millions in net worth, but is now available for clients with hundreds of thousands”. What was even more impactful to this client, was each of the four managers he wanted to use that said no to him, are on RBC’s institutional platform for $50 thousand dollar minimums, not $100 million. You might not have $100 million but... you can invest like you do with RBC.
Contact the Opheim Wealth Management Group today for more information and to get you started on the right track.