Your Portfolio Manager

Portfolio Managers are quite different from investment advisors although they perform similar jobs.  Portfolio managers build and maintain an investment account, while financial advisors sell a specific product.

A portfolio manager differs from an investment advisor in three critical areas:

1.Fiduciary duty

2.Education and experience

3.Discretionary management and personalized services

Fiduciary Duty

Fiduciary duty is a legal responsibility to act solely in another party’s interests.

Portfolio Managers have a fiduciary duty to act with care, honesty and good faith, and must always put their clients’ interests first.

Investment decisions therefore must be independent and free of biases. As a result, clients are able to place a higher level of trust in Portfolio Managers.

This fiduciary standard, which also exists for lawyers and accountants, does not apply to financial advisors.

Professional Qualifications & Registration
Portfolio Managers are required by the provincial securities commissions to have the highest level of education and experience in the investment industry.

The individual managing your investments are monitored by the provincial securities commissions with which they are registered.

Financial advisors and planners are not registered with the provincial securities commissions, but with financial industry organizations such as MFDA or IIROC. As well, the qualifications needed to become registered with one those organizations are much easier to achieve.

Personalized Services and Discretionary Management
What sets the portfolio manager apart from the financial advisor and other financial professionals is the rigorous process they’ve taken to understand the client’s financial goals. Portfolio managers offer clients a personalized business relationship, and act in accordance with the client’s financial goals and risk tolerance

Finally, there are few Portfolio Managers within the Investment Advisor community.
“The Portfolio Manager designation, held by less than 5% of all investment advisors in Canada , offers an enhanced measure of wealth management and requires the highest level of education and experience in the investment industry” –    What is a Fiduciary Financial Advisor, Danny Mackay (SeekAdvisor, 2019)

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