Discretionary Portfolio Management

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Separately Managed Accounts

“Buy when everyone else is selling and hold until everyone else is buying. That’s not just a catchy slogan. It’s the very essence of successful investing.” –J. Paul Getty

Private Client Structure

I want to introduce a new concept. In the past, we have been using Mutual Funds… and that’s great. Mutual funds are a  great solution for many investors. However at your current asset level you qualify for the PRIVATE CLIENT account  supervision called Discretionary Portfolio Management. There are a number benefits associated with this structure.

Some of them include….

  • Full portfolio and fee transparency
  • A dedicated investment account that belongs to you (and only you). This means that it is not co-mingled with any one else like in a mutual fund.
  • Regular Portfolio Manager Interaction

As you can see there are a number of other benefits, however I believe that one of the biggest benefits is that mutual funds  are made for everyone and with this structure a portfolio is made for you.

This is a Private Client approach… in the past you needed a lot of money to participate; however with recent developments  this structure has become available to more clients

What is Discretionary Portfolio Management?

Discretionary portfolio management is a service that was traditionally reserved for wealthy investors or institutional investors  like pensions and large corporations. What it means is that a portfolio manager takes responsibility for making all the  investment decisions at their discretion based on your goals, objectives and requirements.

This is beneficial for many reasons, however the key benefit is that they monitor the portfolios on a daily basis and can react  very quickly if there are developments in the market place. Furthermore, they never actually have access to your money, the  money resides with the custodian, essentially a bank, no different then your local branch

A firm that offers discretionary portfolio management is registered with the provincial regulators, they have to abide the  prudent expert rule where they have a fiduciary duty to do what is right for you the client.

Discretionary Management is The Highest Form of Account Supervision Available to Investors

The professional investment manager will take  responsibility for making all the decisions about the  investments in your portfolio at their discretion, based  on your goals, objectives and requirements.

Portfolio managers have a fiduciary duty to act with  care, honesty and good faith and always in the best  interest of their clients. Investment decisions, therefore,  must be independent and free of bias.

Both the firm and the portfolio manager are registered  and monitored by provincial securities commissions.  Firms registered as portfolio managers must meet strict  financial reporting, capital and insurance requirements  to further protect your investments.

Created For You

  • Dedicated Investment Account
  • Online and mobile client access
  • Paperless account set up
  • Individual Cost Base
  • Tax Harvesting
  • Low Management fee
  • Management fee deductibility
  • Full portfolio and fee transparency
  • Regular Portfolio Manager interaction
  • Customized risk/reward
  • Individual reporting
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No Conflict of Interest

Trades in the investor’s portfolio happen only for the benefit of the client; in this case, the portfolio manger does not make revenue from trading fees. So there is no financial interest for the Portfolio Manager to make trades, trades are completed by the custodian (the custodian charges a fee).

Usually the portfolio manager gets paid based on assets under management; therefore it is in their best interest to make  money for their clients. The more money under management… more revenue for the firm.

The Portfolio Manager is working for us, so if we are not happy with them we can replace them anytime.

As your Financial Advisor, I also get paid based on assets under management. There are no other commissions, no deferred or front load fees. In addition, all fees, trades and transactions are fully transparent and on your statement.

An Ongoing Collaboration With Your Investment Team

You will have more control over your investments by making you an equal partner with a team that  includes me, your advisor and the portfolio manger. The three of us interact on a regular basis,  in defined roles, to ensure that your investment reality matches your investment objective.

Portfolio Managers are experts in a specific discipline, with a fiduciary responsibility to invest with  specific standards and objectives. They have accountability to your specific goals and  instructions. As such, they update you frequently, providing rationales for their investment  decisions, quarterly details of performance and holdings and personalized analysis of your  portfolio.

As your advisor, I am accountable for translating your investment goals and style into an action  plan. I help you pick the manager and evaluate your accounts on an ongoing basis and  interface directly with the Manager on your behalf.

Your role is simple… let us manage your investments and you concentrate on living your life.  We will meet on a regular basis to monitor your portfolio and your financial plan.