Selecting a Private Account Manager

For our clients, there are many factors to consider when choosing money managers. Before making selections, clients should consider:

  • Preferences from a financial standpoint: time horizon, tolerance for risk, expected returns, socially responsible considerations and any other exclusions.
  • Tax implications: Kinds of accounts, a taxable as opposed to a tax-deferred portfolio, tax rates.
  • Money managers’ abilities and resources.

Simply reviewing managers’ historical performance (absolute, risk-adjusted, relative risk-adjusted) is not sufficient. You will need to explore and consider:

  • Tax implications.
  • Holdings/turnover of the portfolio.
  • Composite portfolio quality.
  • Investment philosophy and process/style.
  • Personnel/management.
  • Client service.
  • Performance consistency.

Links of interest: