With discretionary management, investors delegate the daily investment decisions to their Portfolio Manager (PM) based upon a pre-defined set of criteria and parameters outlined within an Investment Policy Statement (IPS). This authority allows the PM flexibility in trading decisions so that buying opportunities or protective selling during volatile markets can be capitalized on. It is the perfect service for the time pressed affluent business owners and executives.
Non-discretionary management can be very inefficient, costly, and results in unequal treatment to clients. 95% of advisors must contact and get either verbal or written consent prior to EVERY trade. There are inherent inefficiencies and potential bias in contacting 100-300 clients to rebalance or change their portfolios.
Some of the other benefits to Discretionary Management include:
- Investment discipline: PM's have strict regulatory standards and adhere to a customized IPS (Investment Policy Statement) catered to your specific needs.
- Bulk trading: Trading can be executed in bulk creating massive efficiencies, fairness, and equal treatment among all clients. Hundreds of clients' portfolios can be rebalanced within hours. There is also the ability for bulk discounted products.
- Accountability: PM's have a legal fiduciary responsibility to act in the client's best interest with honesty and good faith.
- Investment flexibility: There are more investment options available to PM's that typical retail investors cannot access. (ie. Accredited investor products)
- Transparent pricing: Discretionary account fees are transparent, flexible, and based on the value of your assets. Our compensation is tied directly to the value of your portfolio. We only make more if you do. We do not charge transaction commissions and non-registered account fees may be tax deductible.
Discretionary wealth management is the pinnacle of financial advisory services. Caledon Hills Private Wealth is proud to have accomplished and offer what very few have. We have completed the demanding educational, industry experience, and organizational requirements that only 5% of all investment advisors in Canada have attained.
Click on the link below to discover the benefits of working with a Portfolio Manager:
Shane W. Nixon CIM, CFP®, CLU®, BBA (Hons).,
Director, Private Client & Portfolio Manager
21 Parr Blvd, Unit #5, Bolton, ON L7E 4G3
Tel: 905-951-8736 1-866-909-0799 Fax: 905-951-8738