Video - Discretionary portfolio management


In this clip, Valérie Poulin, Director, Discretionary Management, tells you more about discretionary portfolio management. You’ll learn about the two discretionary management options and their respective advantages.

Note: The information in brackets "[...]" describes the visual and audio content of the video other than the dialogue or the narration.

[Elegant music begins. Different parts of Desjardins Securities' head office appear on screen including, primarily, the prestigious trading floor where many employees work. These images give way to a shot of the firm's logo and the website. This shot gives way to Mrs. Valérie Poulin, whom we see appearing on a balcony overlooking the trading floor where employees are busy working].


Valérie Poulin (Discretionary Portfolio Management, Desjardins securities):  

Valérie Poulin, Manager, Discretionary Portfolio Management, Desjardins securities

Many options are available on the market for investors seeking a complete investment solution under which roles and responsibilities are clear and costs are reasonable. Discretionary portfolio management is intended for investors who have significant assets and who wish to delegate everyday investment decisions based on a clearly outlined investment policy.

Discretionary management has the advantage of focusing discussions between you and your advisor on outlining your goals and establishing a strategy consistent with these goals. Once the strategy is established, the client’s participation is not required for the execution of day-to-day trades. Indeed, changes to the portfolio are applied directly, since the investment policy very specifically outlines the type of securities that are eligible and the degree of diversification required in the portfolio.

A number of options exist for investors wishing to delegate management of their portfolios. You may deal with an advisor who has a portfolio manager’s licence, or you may subscribe to a multi-management account, accessible through all of our investment advisors.

A number of investment advisors have discretionary portfolio management licences. This is a privilege granted to advisors who meet specific training requirements and whose applications have been approved by a selection committee. These advisors, who have become portfolio managers, can offer their clients models for which they select the securities themselves. This enables them to take an overall approach for all their clients and to focus on a more tightly defined investment universe. Of course, portfolio management is closely supervised: the selection of securities is reviewed periodically, as are the performances obtained in comparison to the appropriate benchmark indices.

A second discretionary management option is available to you: a multi-management account. With this type of account, you also delegate the selection of securities, though in this instance to one or even several third-party managers. This gives you access to the expertise of renowned managers while maintaining your special relationship with your investment advisor.

Most of the portfolio management firms we work with have proven records and deal mainly with institutions, such as retirement funds. These portfolio managers also make their expertise available to firms such as ours that specialize in retail service. They provide us with model portfolios, in other words lists of securities they buy for their institutional clients. We in turn replicate these lists in our clients’ accounts. Thus, with several hundred thousand dollars, investors may have access to their own selection of the top managers on the market.

When you choose discretionary management, you are buying the benefit of a supervised relationship with an investment professional in exchange for management fees that you know from the start. Your investment advisor will help you determine accurately:

  • your financial situation;
  • your risk tolerance;
  • your investment goals;
  • and your target asset allocation.

Your advisor can then suggest a portfolio that will fit your needs.

Whether you choose the services of an advisor who is a portfolio manager or opt for a multi-management account, great attention will go toward monitoring your portfolio, and changes in your financial situation will be assessed periodically to ensure that the strategy established for you remains optimal.

Discretionary management accounts are proving highly popular since they offer many advantages: they are flexible and structured, and they can provide you with great peace of mind. Talk about this with your investment advisor. He or she will help you decide if this solution is right for you.

[The music begins again. The website address appears in the middle of the screen and the following text appears at the bottom of the screen « Desjardins Wealth Management Securities is a trade name used by Desjardins Securities Inc. Desjardins Securities Inc. is a member of the Investment Industry Regulatory Organization of Canada ( IIROC ) and the Canadian Investor Protection Fund (CIPF). ». These images end with the Desjardins Securities logo. ]

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