A Better Way to Invest

The problem with the Buy & Hold Model is that it only works in one scenario - a long term bull market.

Yet most advisors in Canada have to use the Buy & Hold approach. They aren’t discretionary managers and they can’t change investments on a timely or proactive basis. Even if they wanted to make a change, it would take months to call each client, one by one, to get approval for the transaction. It is easier for the average advisor to say to clients that “this investment is a long term hold, but sometimes it won’t do as well as its peers” or “you need to stay invested through the downturns and keep your eye on the long run”. 

We believe there is a better way to invest. 

We are discretionary Portfolio Managers. We believe that different investments work at different times. We spend a significant amount of time researching a variety of investment strategies and trying to discern which ones make the most sense in the current environment. 

For a discretionary advisor, making changes to every client’s account is easy. We can sell an investment that is doing poorly, and buy one that we believe has better potential, across all client accounts in one morning. 

And we believe that sometimes it might make sense to be out of the markets. If our research suggested that we were potentially on the cusp of a larger drop in the markets, we may decide to preserve capital by moving some or all of our clients’ equity investments to cash or bonds. If there is a chance to avoid a major drop in markets, why watch the portfolios drop 25% and then spend the next few years trying to get back to where we were? 

In the long run, we believe that investing in the equity markets provides the greatest return. However, we believe our main job is to help clients grow their assets while managing risk. To do so, we need to be able to move quickly if a problem arises or if a better opportunity comes along.

For clients, there are many benefits to a discretionary investment platform. Here are a few:

  1. Every client is treated equally. We don’t start by calling our top clients first. All trades are done at the same price on the same day for everyone.
  2. We have a wider range of investments to choose from. We can incorporate mutual funds, Exchange Traded Funds (ETFs), stocks and other investments to provide portfolios with better potential returns and greater downside protection.
  3. Our fees are unbundled from the investments we recommend. You pay a flat fee, regardless of the type of investments. This eliminates any perceived or potential bias for recommending one investment over another. 
  4. No commissions are charged for buying or selling stocks, ETFs or mutual funds.
  5. Our income is tied directly to the performance of your investments. The more you succeed, the more we succeed.
  6. The amount you pay to us is visible on every statement. It isn’t buried in a mutual fund management fee.
  7. The management fee is tax deductible for any non-registered accounts.