Few investment professionals are permitted to provide discretionary investment management. To be able to do so investment advisors must meet strict educational and experience requirements to be a registered Portfolio Manager (PM) with the securities commissions. This elevated level of licensing provides MP Wealth Advisory with the unique ability to pass on several benefits to our clients, while adhering to a very strict code of conduct.

With discretionary accounts, institutional investors delegate day-to-day investment decisions to their portfolio manager. This differs from non-discretionary accounts where clients must make final trading decisions. In particular most decisions made at an institutional level are rarely performed by a sole individual, typically the decisions are made by a board of directors or a sub-committee. In today’s fast-paced financial world delegation provides a fundamental advantage to institutional investors, such as:

  • The ability of the Portfolio Manager to make the day to day investment decisions in accordance to the institution's adopted Investment Policy Statement, nullifies the need for continual meetings and concerns around reaching consensus or quorum. Allowing decisions to be made in the best interest of the institution in a timely fashion.
  • Discretionary accounts will also mitigate the personal biases of individual board or committee members and will focus on managing the funds in accordance of the collective boards mandate/vision as all decisions are made in accordance with the previously adopted IPS. 
  • The IPS is meant to serve as a living document and should be reviewed and amended (if necessary) on an annual basis.

Our portfolio managers are bound by the parameters outlined in your investment policy statement. Institutions may even establish constraints based on such things as guiding principles and specify stocks to avoid from industries they feel are socially undesirable. As a fiduciary you can have greater peace of mind knowing that discretionary accounts are subject to greater governance and oversight by the investment industry, while allowing the advisor the maximum level of responsiveness to changing markets.