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Making a move – what to ask:
Part Two
In the August issue, we published the first set of
questions to help those investors considering a switch from their
current money manager or financial advisor. Indeed, it’s a big
move and asking the potential advisor(s) for the information you need
during the interview process is an integral part of making your move a
success.
So don’t rush the process. Gather material and prepare your list,
using the following to guide you. Remember to focus on those questions
that are most relevant to you.
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Adena Franz
Portfolio
Manager
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Registration
- With which
authorities are you registered?
- What is your
official title?
- Tell me
about your compliance department and how my accounts are protected with
your firm.
Your clientele
We all have preferences insofar as the people we prefer to work with.
What’s the most important thing you look for in a new client?
Describe the kind of client you find you work with best?
What’s the average asset level of your clients? How many client
households do you work with - and where would my portfolio fit in?
Tell me about the last couple of clients who left you and took their
account elsewhere. Have you had any client complaints to your firm in
the past couple of years?
General
approach
Some advisors focus on getting the investment process right while some
others also offer insurance and tax planning along with estate and
retirement planning issues. Where do you fall on this spectrum?
Investment
philosophy and your portfolio
I know that some financial advisors build portfolios of stocks and
bonds for clients themselves, some delegate this to money managers and
some do a combination of the two. What is your approach?
How do you go about building portfolios or choosing money managers? To
what extent do you rely on research from your firm or outside parties
in selecting stocks and money managers? How do you go about monitoring
portfolios or money managers?
The last 12
months
- How did you
position client portfolios like mine going into the beginning of last
year?
- What kinds
of changes have you recommended to clients since last fall? What kind
of advice are you providing to clients like me today? What are you
doing to manage risk?
- Without
getting into the actual dollar amounts, in general terms would you be
willing to share what you held in your own portfolio going into last
fall and what your own portfolio looks like today?
- In your
opinion, what are the most important lessons you’ve learned
as a result of the events of the past year?
Taking notes during the meeting will help you remember the answers,
particularly if you meet with several advisors. And remember that while
feeling comfortable with a new advisor is important, you want to
balance that with an assurance of competency and experience.
And finally, when you’re all done, what do you do with all the
answers? We’ll look at that question in our column next month.
Stay tuned!
We’d love to hear your story about the markets and about how
extraordinary you’ve been. Please send your e-mail to ptria@3macs.com, or write us at
MacDougall, MacDougall & MacTier Inc., 1010 de la Gauchetiere
Ouest, Montreal, H3B 4J1.
Adena Franz is a Vice President and Portfolio Manager at MacDougall
MacDougall & MacTier Inc. She can be reached at 514-394-3771. The
information contained in this article is for general information
purposes only. It does not account for specific investment objectives
or the financial situation of any person reading it. Opinions expressed
are those of the author and do not necessarily represent the opinions
of MacDougall, MacDougall & MacTier Inc. Investors should seek
professional advice regarding the appropriateness of investing in any
securities discussed or recommended here and should recognize that
statements regarding future prospects may not be realized.
 MacDougall, MacDougall & MacTier Inc.
The Franz
Group
1010
de la Gauchetiere Ouest, Suite 2000
Montreal,
Quebec H3B 4J1
www.3macs.com
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