Accordion – Portfolio Management

If portfolio managers can provide a broader range of services, why are there not more of them in Canada?

The Portfolio Manager designation is among the most demanding in the financial industry, with rigorous education, professional experience, and regulatory requirements. By working with a portfolio manager, you can have confidence that your investments are being managed by a highly qualified and experienced professional.

Sources:

1. https://www.iiroc.ca/investors/dealers-we-regulate
2. https://www.iiroc.ca/sites/default/files/2021-06/f8f7c899-2f61-4f0f-b0d8-e2ca7a8865ff_en.pdf
3. https://www.cfainstitute.org/en/membership/apply/work-experience-self-assessment
4. https://mfda.ca/wp-content/uploads/2022/12/ClientResearchReport22.pdf
5. https://www.csi.ca/en/learning/courses/ifc/exam-credits/
6. https://www.cfainstitute.org/en/programs/cfa/candidate-success-center

How does it simplify my financial life?

Based on clearly defined parameters established with you in writing, you entrust us with day-to-day investment decisions, guided by your objectives and the level of risk you are comfortable with. Think of yourself as the CEO and of us as a member of your leadership team: you set the direction, and we implement the strategy and report back on the results.

It is simpler for you, because you no longer need to provide verbal authorization before every transaction. It is more efficient for your portfolio, because we can act quickly and consistently across all client accounts. And those are only some of the 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.