Anyone use CIBC Personal Portfolio Services

[callicles]

Does anyone use CIBC Personal Portfolio Services? It's supposed to be a managed account that provides more flexibility to the managers to manage the funds than mutual funds. Therefore, the fees are a little higher than mutual funds' fees but then the management fees are tax deductible. CIBC is trying to convince me to invest in them and I'm a bit wary as I'm not able to find much research on it. Thanks.

[wesboag]

Hey,

CIBC managed portfolios are a misconception. I have had several clients who were with CIBC that were convinced they had something unique going for them using this service. When I have looked over their statements, all it really is, is a passively managed portfolio. It’s the same service any of the other banks push. There really is no active management on their part besides doing some rebalancing here and there. I’m curious to know where you got the information that management fees there were tax deductable? How is their service any different from other institutions? They say they actively manage your money. Have you even had a financial review done for you? Have they asked you in-depth questions to really get to know you? It perplexes me why so many people continue to believe the top banks really have your interests at heart. Their goal is to gather assets.

[callicles]

The CIBC person told me that the fees are tax deductible which really should more than compensate for the increase of the management fee over those in mutual funds. I haven't had a financial review done per se, but the CIBC person knows me fairly well from dealing with them for years. Recently they changed advisors, however, and the new advisor has suggested using this service rather than mutual funds.

[wesboag]

CIBC managed portfolio services DO use mutual fund investments. No idea what they are talking about here. They have I believe 6 seperate portfolios you can invest in - all made up of mutual funds and their underlying stocks. I have a clients old managed portfolio from CIBC in front of me right now. I'd call and make sure that rep you spoke with actually knows what they are talking about because I have never seen management expenses that were eligible for deduction....I'd like to know how this is possible as I am a financial planner.
Regardless of how much you think they know you....make sure you have a full review done for you: i.e your revised goals/concerns/time frame/as well as a break down of all your finances....savings at CIBC and apart from CIBC, RRSP's, TFSA's, mortgages, lines of credit, etc. And im not talking about a few questions here. This is the only way one can actually gain real insights into formulating a specific plan tailored to you. I say this, but I am yet to see an actual written plan from anyone at any of the major banks. Dont think of it as asking for it as a favour from them as they should be doing this as part of your continued business with them. Remember, you are doing them the favour by working with them, not the reverse.

[albatman]

CIBC managed portfolio services DO use mutual fund investments. No idea what they are talking about here. They have I believe 6 seperate portfolios you can invest in - all made up of mutual funds and their underlying stocks. I have a clients old managed portfolio from CIBC in front of me right now. I'd call and make sure that rep you spoke with actually knows what they are talking about because I have never seen management expenses that were eligible for deduction....I'd like to know how this is possible as I am a financial planner.

This is a perfect example why I don't put my money with a financial planners :)

You should at least know that the money you charge your clients can be deductible!!! it is called "investment counsel" and it depends on what the fees are charged for and what kind of account they are charged.

[Icedawn]

Aren't mutual fund MERs implicitly deductible in that they are deducted from your distributions, therefore reducing your income, and therefore reducing your tax payable?

[albatman]

Aren't mutual fund MERs implicitly deductible in that they are deducted from your distributions, therefore reducing your income, and therefore reducing your tax payable?

He is not talking about MERs here, but rather fees charged by a planner to manage your investments.

[callicles]

Yes, apparently, each quarterly statement I would receive would include an amount for management fees which would be tax deductible when doing my tax return for that year. The fees, however, are not paid separately by me but are in fact already deducted from the units of each of the investment pools I would invest in (similar to mutual funds where the fees are already deducted).

[MyLifeInBrampton]

Hi,

I think people here are talking about two different products:

1 - CIBC Managed Portfolio Services

http://www.cibc.com/ca/mutual-funds/managed-prtflio-serv.html

2 - CIBC Personal Portfolio Services

http://www.cibc.com/ca/portfolio-solutions/trust-pers-prtflio-serv.html

They are different products.

[callicles]

Perhaps, I was referring to the latter, the CIBC Personal Portfolio Services where apparently the management fees are tax deductible.

[SpillOnAisle9]

apparently the management fees are tax deductible

Yup...as long as they're buying stocks/bonds. I have a couple of Wood Gundy
ICS sub-accounts (Investment Consulting Services). Wood Gundy sets up
the account and sends the paperwork but the management is spread out
to different companies. You see the buys and sells but there are no
comission fees....except for whatever the actual mgt company takes on a
quarterly basis...currently mine are both at 1.5% The 2 companies mine
go through are

Foyston Gordon & Payne
Causeway Capital

I'm sure that CIBC would be able to go through the same and more
companies depending on risk tolerance.

[Germack]

This is a perfect example why I don't put my money with a financial planners :)

You should at least know that the money you charge your clients can be deductible!!! it is called "investment counsel" and it depends on what the fees are charged for and what kind of account they are charged.

What do you expect? Anyone can call themselves financial planner in Canada. Therefore, not everyone who refers to themselves as a planner is indeed qualified.

[wesboag]

What do you expect? Anyone can call themselves financial planner in Canada. Therefore, not everyone who refers to themselves as a planner is indeed qualified.

you are an idiot. I thought he was speaking of the managment fees attached to the actual funds. Not the fees charged by the planner/advisory.

[albatman]

you are an idiot. I thought he was speaking of the managment fees attached to the actual funds. Not the fees charged by the planner/advisory.

No actually, he is not.
If you knew what "investment counsel" means you could have at least suggested it could be that, but instead... you said


I have never seen management expenses that were eligible for deduction

You are clueless just like most financial planners.

[Germack]

you are an idiot. I thought he was speaking of the managment fees attached to the actual funds. Not the fees charged by the planner/advisory.

Every second post your are insulting someone, post a lot of incorrect information or make up things out of thin air.

I just fell sorry for your clients.