Both main stream and boutique stock brokerages peddle opaque and esoteric securities, complex hedge funds strategies and limited partnerships were investors are not fully informed about the risks or the sources of potential return. They also attempt to conjure the illusion of personalized portfolios that are ‘fully tailored to the individual investor’. All the while the stocks are picked from a stock sheet mass-distributed by the brokerage to all stock brokers, or worse, the broker views himself as the next Warren Buffett picking stocks for his clients.
At arpadWEALTH, we are convinced that a fully informed client is the best type of client. We don’t believe in hype and we don’t believe in smoke screens. Stock brokers cannot compete with the returns provided by a diversified index or an exceptional money manager working with a broad mandate. They just don’t have the time and resources to perform the necessary diligence, and instead they resort to trading activity as a proxy for results. All the while, and more often than not, doing nothing and just sticking to the plan is the best and hardest thing our clients can do. We are here to help you suppress the typical ‘fight or flight’ emotional response that is a common feeling during market turmoil.
Along with our initial and ongoing investment counsel, we offer the following features of a fully transparent and secure relationship:
A written investment plan that we develop together serves as a guide to meeting your personal objectives. The plan will change only when your personal circumstances warrant a change – not in reaction to short-term market movements.
Your assets are held in your name and not in ours. We do not have discretionary trading authorization in place with any of our clients, nor do we intend to have one in the future. All trades must be authorized by you, the client, and are executed without any cost to you as part of our service offering.
We engage the asset management services of AIM Trimark, CI Investments, Franklin Templeton and Mackenzie Financial for our clients. Narrowing down the ever-expanding universe of investment companies to four of the largest asset management organizations makes sense to us. They have a broad array of portfolios and amongst them we are able to identify a few money managers with demonstrated track record for outperformance. Closet indexers are carefully avoided.
Our dealership is Equity Associates Inc., whose role is limited to providing us with regulatory oversight and a trading platform amongst other administrative services.
Our compensation only comes from your success. As fee-based advisors, we charge a flat 1% annual fee of your assets under management with us for the services we provide to you, redeemed automatically from your investment account on a monthly or quarterly basis. There are no other fees, commissions or account charges.
- When we undertake the management of your assets, we reimburse you for any and all charges directly related to your assets being transferred over to us.