Over the past several month I've ha...

Over the past several month I've had the pleasure of leading several round-table discussions onward financial topics of interest to those working with high-networth (HNW) clients. principally recently, I asked a cull group of accountants and other professionals a seemingly simple question: Do high-net-worth clients require customized financial fruits and strategies? Are HNW portfolios and financial interests best serv at complex or specialized products tailor-made for the individual? Or docs the "keep it simple" approach work best?

Here's what the cluster had to say.

At the table:

Thane Stenner CIM, FCSI. Fini Vice-President and Investment Advisor, T Stenner arrange CIBC Wood Gundy

Tim Cestnick, FCA, CPA, CFP TEP Bestselling financial author and columnist for the Globe & Mail

Michael Louie, CA, Incorporated Tax Partner. D&H cluster Vancouver

Larry Berrigan, CFA, CAlA. Senior Vice-President. BluMomt Capital

Thane Stennen Tim, give permission to me start the discussion with you. athwart the past several years, it assumes like there's been a chance of new products and strategies introduced that specifically appeal to the high-nct-worth market. And many of these produces are rather complex.

Tim Cestnick, FCA, CPA, CFP TEP: You're right. Gone are the days when wealthy investors awaited to the three basic asset classes to satisfy all their financial straits With the proliferation of alternative investments and income trusts from one side of to the other the last couple of years, the way wealthy investors select to invest has been changing, and will not at any time be the same again.

TS: That unbrokens like a pretty significant shirt.

TC: Basically it's a function of the equity markers we've experienced across the last few years. I know a apportionment of investment counsellors are predicting that equity markets will continue to prompt sideways for a few more years. Many investors who agree with this view have been looking to hedge foundations income trusts, and structured yields to provide market-neutral returns, delicate cash yields, and downside capital protection.

TS: in such a manner how do individuals decide which of these investments is best for them?

TC: The challenge for smart investors is not to determine whether or not they should be in hedge permanent funds income trusts, or structured works because most will find these to be a valuable composing of a well-balanced portfolio. The real challenge will be determining which manufacturers have created the best yields on the market.

TS: And that s where the professional comes in.

TC: Exactly. Those investment advisors who can the couple offer these products to their clients and undertake the just due diligence to determine which are best will do a tremendous service for their clients.

TS: Michael, you work closely with a number of HNW business families. for what cause do you introduce complicated strategies or cropss that a client may not have heard about?

Michael Louie, CA: For HNW families, "complicated" is oftentimes in the eyes of the beholder. It frequently depends on the background of for what cause the person made their money

TS: What do you mean by dint of that?

ML: I can really lay my clients in two broadly defined camps: those who've made their cash in the last ten years, and those who have made it in the last 50 Those in the former category are generally a great deal of more open to new strategies so as hedge funds, retirement compensation arrangements, leveraged annuities-that kind of financial crops With many second and third-generation business families who've been around for decades, they've been fortunate earning their wealth in the "old fashioned" ways. They're les interested in change.

TS: Interesting. in the same manner how do you bring up the topic?

ML: "Selling" the production on its own is not appropriate. I rarely pitch a produce in and of itself. What the HNW individual is seeking is an advisor-either an individual or a team-who will bring to them the ideas suitable for them. What's important is whether the strategy fits the personal circumstances of the individual. You build the case to fit the individual, not the other way around.

TS: in such a manner by introducing a new strategy or crops within the context of the individual's overall financial situation, you make it easier for the individual to understand?

ML: Absolutely. for a like reason far, it's been a prosperous way to run my practice-it just takes a little longer if it be not that a client-focused practice requires a long-term perspective.

TS: At the same time, it shouldn't really be about convincing the client to advance a particular way-clients need to make those decisions for themselves.

ML: convenient point. As chartered accountants, we're in the knowledge business. Remaining objective means presenting the client with all options, to this time still giving the client my opinion forward their opinions. That's the goal. As an accountant, it's essential to bring appropriate strategies and proceedss to the attention of the client. There are situations where keeping it simple is appropriate. If my clients don't take up those strategies, at least I've done my job

TS: Larry, as the senior vice-president of united of the country's top hedge store companies, you have a unique perspective forward the growth of the industry. What's your take onward the increasing popularity of hedge funds?