Conscious Money has been providing individually managed accounts (IMA) to its clients since 1990 while
others are only just experiencing this phenomena.

While the name may be self-evident, it is the difference between such service and the service of institutional investment accounts that makes the difference.

Individually managed accounts and institutional funds represent two of the most popular investment vehicles to create wealth. In this respect, their aims are not dissimilar.

Both offer investors a professionally managed portfolio designed to provide diversification and create wealth and security. So why choose Conscious Money's individually managed accounts over institutional accounts?

An individually managed account is individually managed by you with the assistance of Conscious Money who decides when to buy and sell securities based on your stated investment strategy or goal.

Because it is individually managed, the decisions are made in consultation with you and in keeping with Conscious Money's philosophy of keeping clients fully informed. You will be aware of the market forces behind such recommendations, placing you in a position to make a confident final decision.

Unlike institutional fund investors, IMA investors do not pool their money but rely on their own investments which means they can set their own boundaries and customise their accounts as significant life changes occur.

Many investors prefer the hands-off approach of institutional investing but those who like control over their lives often opt for an IMA.

Factors they often look to include:
• Greater control and flexibility over tax planning,
• The ownership of assets in relation to the treatment of capital gains and losses,
• The effect that other investors may have on an investment manager's decisions,
• The methods used to report information,
• The way in which fees are handled and reported,
• The level of service provided.

With individually managed accounts, investors pay taxes only on the capital gains they actually realise and because they own the securities they can investigate tax planning options not available to institutional investors.

For example, if an institutional fund bought into a stock at $10 and it rose to $20 over the next few months this would be attractive. An investor may buy into the fund when the stock has peaked and finds that later in the year the share price has fallen and the fund has off-loaded its parcel of stock.

Another factor to take into consideration is that during market falls, institutional funds may be forced to sell securities at undesirable prices to raise sufficient cash to meet investors' dividend needs. This may go against the fund's better judgment but also negatively affects its performance.

IMAs are not affected by the decisions of other investors who use the same manager. Since accounts are managed individually, the investment manager's strategy cannot be undermined by the cash-raising pressures of a lemming mentality.

Also long-term investors will not be handicapped by the short-term demands of other investors.
An important aspect of individually managed accounts is that you, the investor, are kept informed.

At Conscious Money we provide a range of information facilities to keep you fully informed of your portfolio's performance and of developments in the market that may have an impact on your portfolio.

Institutional funds generally send out regular statements listing the number of units investors own in the fund's common pool of investments and the value of those shares, as of the end of the statement period.

On the other hand, an investor in a Conscious Money individually managed account, generally receives statements detailing each security in the investor's account, the security's cost base and its 'weighting' in
relation to other holdings in the portfolio.

In addition, managed account statements provide information about the account's performance, dividends and income, capital gains or losses and other pertinent items.

Investors have access to this information 24-hours-a-day, world wide, via Conscious Money's secure web site.

Choosing which way to invest is a personal decision, but we advise that you seek professional help.

With a vast array of institutional products on offer, it may be hard to find one that perfectly suits your particular needs.

If you have the time to do your own research, dissect prospectuses, analyse markets and keep up with market conditions, you may be able to make do without professional help.

However, looking to an individually managed account means yours is tailored to your needs and will adapt and change as your needs change. In the end, only you can decide which investment program is best for you.

Individually managed accounts may require a higher initial investment in time and in money.

However, the time is well spent as you will get more service, more individuality and more flexibility.
An added advantage is that individually managed account investors are not affected by the actions of others who use the same manager or by the actions of institutional funds.

Contact Conscious Money to see how an individually managed account can work for you.