Provisus Wealth Management

Provisus Wealth Management

September 19, 2007 08:00 ET

Provisus Wealth Management: Going Beyond the Ordinary Investment Solutions

TORONTO, ONTARIO--(Marketwire - Sept. 19, 2007) - With record numbers of Canadians selling businesses, inheriting wealth or simply looking to adequately prepare for their retirement - the need for customized portfolio management is definitely on the rise. The question on most investor's minds is where do they turn in these situations? Their goals are quite different than most other Canadians in that they have already made their money. What is important to them is not to lose that money while still growing their nest egg to provide for a comfortable retirement and perhaps leave an estate. Many of these investors are turning to professional money managers to help them achieve their goals.

Historically this requirement has led straight to the wealth management and private client divisions of the big banks. Now there is an alternative which allows independent mutual fund, IDA and insurance advisors to compete for this business - Provisus Wealth Management. The portfolio management team at Provisus has over 60 years of portfolio management experience and uses proprietary portfolio optimization to provide overlay management. Provisus through its Transcend Managed Accounts Program combines their expertise as overlay managers with some of the best independent institutional money managers in the world.

Overlay management is a key feature missing from most traditional separately managed accounts programs. It involves using quantitative and qualitative analysis to combine managers that have the lowest possible correlation of returns. Overlay also involves tax management at the client and account level, which can also improve returns considerably. A recent study done in the US estimated that overlay management can add 33-100 basis points annually to portfolio returns.

Since clients in separately managed accounts own the underlying securities, not a pool of securities, this leads to greater customization and tax control. Customization is often desired or even required by clients for a variety of reasons. For example, if a large amount of a client's assets is invested in one particular industry that industry can be limited or eliminated from the managed portfolio. Clients who wish to invest in Socially Responsible mandates can also be accommodated without sacrificing returns. Increased tax control comes from individual security ownership and the ability to harvest gains and losses as needed to keep accounts tax neutral.

"We designed our SMA platform with the expressed purpose of delivering this unique and customized service to the independent advisor community. Clients are becoming more sophisticated and demanding; and financial advisors need to respond to keep pace," says Provisus' President & Chief Investment Officer Christopher Ambridge. "By using our unique services advisors can now offer tailor-made investment solutions intended to meet their clients' specific requirement without having to give up any control."

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