Managing your investments can feel like watching your first Superbowl game—overwhelming, confusing, and frustrating when you don’t understand how it all works.
Should you buy more stocks? Sell before the market dips? How do you know when to act? Why are there so many whistles??? 🏈
It’s certainly not unusual to want to grow your wealth but to still feel stuck in decision paralysis or unsure about where to start.
That’s where discretionary management comes in—a proactive, hands-off solution where a Portfolio Manager manages your investments for you.
It’s like having a financial coach who knows the game of investing and helps you play it with confidence so you’re not always stuck on the bench.
What Is Discretionary Management?
In simple terms, discretionary management means handing over the day-to-day decisions about your investments to a trusted professional. Don’t worry—you’re still in control of the big picture, as defined by your Investment Policy Statement (IPS).
The IPS is a personalized document that spells out your financial goals, risk tolerance, and preferences. Think of it as your financial playbook: it ensures every decision aligns with your priorities and evolves as your life does.
With this approach, your investments work for you. Plus, discretionary managers are held to a fiduciary duty, which means their legal and ethical responsibility is to always act in your best interest.
Fiduciary Duty: Putting You First
A discretionary manager is legally and ethically required to act in your best interest. Every decision is made with your unique goals in mind, and we follow strict compliance standards to ensure transparency and accountability.
This means no unnecessary risks, no jargon—just careful, goal-oriented management.
The Benefits: Why Discretionary Management Works
Discretionary management offers several advantages:
Proactive Adjustments
Markets can change faster than Gen Z slang, and your manager has “main character energy.” They’ll be poised to respond in real-time—reducing risks during high markets or seizing opportunities during downturns. No waiting for approvals, no missed chances. Slay.
Disciplined, Long-Term Strategy
One of the hallmarks of discretionary management is its focus on high conviction and discipline. Rather than reacting to short-term market noise, your manager builds a strategy grounded in strong fundamentals and intentional allocations.
Here’s how:
- High-Conviction Investments: Your portfolio focuses on quality investments chosen for their potential to perform well over the long term.
- Disciplined Rebalancing: Allocations are reviewed regularly to ensure your portfolio remains aligned with your risk tolerance and objectives.
- Consistency Through Volatility: Even during market turbulence, discretionary management takes a measured, goal-oriented approach.
This disciplined framework is inspired by the best practices of pension funds, prioritizing stability and growth over time.
Streamlined Reporting
Managing multiple accounts can feel chaotic, but discretionary management simplifies it. With clear, unified updates across personal, family, or corporate accounts, you’ll always know where things stand.
Tax Efficiency
Discretionary management can also help optimize your tax situation…
- Deductible Fees: If you have a non-registered account, the management fees you pay may be tax-deductible, reducing your taxable income.
- Strategic Placement of Investments: Your manager takes a tax-aware approach, placing income-generating investments in tax-advantaged accounts like RRSPs or TFSAs, while reserving tax-efficient investments for non-registered accounts.
- Proactive Capital Gains Management: Your manager carefully plans asset sales to minimize taxable events, helping you keep more of your wealth.
(Tax benefits depend on your personal situation, so consulting with a tax professional is always recommended.)
The Bottom Line
Discretionary management isn’t just about investing money; it’s about gaining confidence in your financial future.
With a team of professionals handling the details, you’re free to focus more on what really matters—whether that’s growing a business, spending time with your family, or learning the rules of football before the next Superbowl.
Ready to take the next step? Book a call to learn more about how discretionary management can align with your financial goals.
This information has been prepared by Andrew Nguyen CFA, CFP® who is a Portfolio Manager and Certified Financial Planner for iA Private Wealth Inc. Opinions expressed in this article are those of Andrew Nguyen and do not necessarily reflect those of iA Private Wealth Inc. iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.
