What is discretionary portfolio management?

Discretionary portfolio management, sometimes referred to as private portfolio management, can only be provided by a portfolio manager. It allows you to delegate day-to-day investment decisions while retaining control over the overall framework governing your portfolio. Together, you and your portfolio manager establish clear parameters in writing based on your objectives and the level of risk you are comfortable with. Within those parameters, your portfolio manager can make investment decisions on your behalf without requiring your approval before each transaction.

• It is simpler for you, because you do not need to provide verbal authorization for every transaction.
• It is more efficient for your portfolio, because your portfolio manager can act quickly and consistently across client accounts.

Additional benefits

1. Saves you time: You do not need to approve every transaction, which means no stepping out of meetings or returning calls while you are on vacation.
2. Faster execution: Your portfolio manager can act promptly when opportunities arise, even when you are unavailable. Transactions can therefore be completed when the timing is appropriate, rather than when you can finally be reached.
3. Consistent treatment across clients: Your portfolio manager can act for all affected clients at the same time, rather than contacting each client individually and deciding who to call first.
4. Transparent fees: Portfolio management fees are clearly disclosed and are generally based on a percentage of the assets under management rather than transaction-based commissions. In certain circumstances, fees related to non-registered accounts may also be tax deductible.
5. More meaningful conversations: Less time spent discussing individual transactions means more time to focus on what matters most, including your personal objectives, tax planning, and short-term financial needs.
6. Disciplined, strategic management: It can be difficult for investors to sell an investment at a loss or invest when market sentiment is highly negative. Portfolio managers are accustomed to making these decisions objectively. The result is a more disciplined approach guided by a well-defined investment strategy rather than short-term emotions or intuition.