Discretionary clients realize significant benefits as our portfolio managers can act on available information quickly and efficiently. This includes selling securities across all accounts within a mandate in one timely and efficient transaction. Likewise, our portfolio managers are better positioned to seize buying opportunities. When the markets dip and a good quality stock inexplicably drops in value, they can again act immediately.
Our investment approach aims to mitigate investor emotion and discretionary accounts allow us to efficiently position securities across our entire client base. The associated ‘bulk’ trading allows “fairness" amongst all clients, allowing everyone to enter or exit a position at the same time and at the same price.
All investors need to ask themselves these three questions: When the markets experience a significant correction (as they have with increased frequency over the last quarter century), can your advisor react quickly enough to protect your hard earned retirement savings? How far down your advisor’s contact list are you? Has your advisor adequately reduced your market risk as you approach, transition into, or enjoy retirement?