Discretionary Portfolio Management for Alberta Investors

What Discretionary Portfolio Management Actually Is

Discretionary portfolio management is professional investment management where a licensed portfolio manager makes investment decisions on your behalf, within the boundaries of an Investment Policy Statement you both agree to. It's different from a traditional brokerage relationship where you approve every trade, and different from a mutual fund where one fund manager runs a single pooled product for thousands of investors.

The key features:

• A licensed portfolio manager with a fiduciary duty to act in your best interest

• An Investment Policy Statement that defines your goals, risk tolerance, time horizon, asset allocation ranges, and any specific constraints

• Direct ownership of the underlying securities — stocks, bonds, ETFs, sometimes alternatives — held in your name at a custodian

• Discretion to act on opportunities and risks without needing approval for every individual trade, within the IPS framework

• Transparent, fee-based pricing rather than commissions on trades

Historically, this kind of service was reserved for wealthy investors and institutions. Lower account minimums and better technology have made it accessible to a broader range of Alberta clients in recent years — typically once investable assets reach around $250,000-$500,000, though the threshold varies by platform.

How We Fit In

A note on how this works, because the structure matters.

We don't manage portfolios directly. We're not registered as portfolio managers, and we don't claim to be. What we do is connect clients with established Canadian discretionary portfolio management platforms when DPM is the right answer for their situation — and we integrate that decision with the rest of the financial plan.

The practical workflow:

1. We assess fit. Whether DPM makes sense for your situation, and at what size of mandate.

2. We make the introduction. We connect you with a portfolio management firm that fits your needs — by asset level, by investment philosophy, by the kind of reporting and communication you want.

3. You engage directly with the portfolio manager. They open the accounts, draft the Investment Policy Statement, and execute the strategy. Your relationship for investment decisions is with them.

4. We stay in the picture. Investment decisions don't happen in isolation. We coordinate the DPM mandate with your broader plan — tax position, retirement projections, corporate structures, estate considerations — and review at least annually.

We earn referral compensation when clients engage one of the portfolio management platforms we work with. The arrangement is disclosed in writing at engagement. Going through us doesn't increase your costs — the same fees apply whether you find the platform yourself or through an advisor — but the integration with broader planning is real value.

Why Discretionary Portfolio Management Often Beats the Alternatives

For investable assets above certain thresholds, DPM frequently outperforms the alternatives most Albertans encounter. A few reasons:

Lower total cost. Traditional mutual funds in Canada have historically carried management expense ratios of 2.0-2.75%, often with embedded trailer commissions paid to advisors. A discretionary portfolio manager typically charges a transparent fee in the 1.25-2.0% range depending on portfolio size and complexity, with the actual underlying securities (stocks, bonds, low-cost ETFs) carrying their own minimal costs. Over decades, the fee difference compounds substantially.

Fee transparency. With a mutual fund, the embedded fees come out of the fund's net asset value — you see returns net of fees, but you may never see a clear dollar figure for what you paid in any given year. With DPM, fees are deducted explicitly from your account monthly or quarterly. You see the actual dollar amount. You know what you're paying.

Tax efficiency. A skilled portfolio manager can place tax-efficient holdings (Canadian dividend-paying stocks, certain ETFs) in non-registered accounts and place tax-inefficient holdings (bonds, foreign equities) in registered accounts. They can harvest tax losses, manage capital gains realization, and coordinate with your accountant on year-end tax position.

Fiduciary duty. Portfolio managers in Canada have a fiduciary obligation to act in your best interest — a stricter standard than the "suitability" obligation that applies to many investment salespeople. Combined with provincial securities commission oversight, the regulatory framework is genuinely investor-protective.

Reporting and access. Most modern DPM platforms provide detailed online reporting, transparent fee disclosure, mobile access, and direct ability to speak with the portfolio manager when needed. Compared to a mutual fund where you receive an annual statement, the visibility is significantly better.

When DPM Doesn't Fit

Honest about the situations where DPM is not the right answer:

• Below the minimum asset threshold. Most platforms require minimums to open an account. Below that, mutual funds or low-cost ETF portfolios through an advisor or self-directed broker are usually more appropriate.

• Short-term funds. Money you'll need within 1-2 years shouldn't be in equity-heavy portfolios regardless of manager quality. DPM works for medium-to-long-horizon investing.

• Strong desire for trade-by-trade control. If you want to approve every transaction, a traditional advisory or self-directed brokerage relationship fits better than discretionary management.

• Highly specialized investment needs. Concentrated private equity, real estate syndications, complex tax-driven structures — these often require specialty advisors beyond a general DPM platform.

• You're a sophisticated self-directed investor who genuinely outperforms. If you have the time, discipline, and skill to consistently manage your own portfolio at low cost, the case for DPM weakens. (This applies to fewer people than think it does, but it's a legitimate path for some.)

Integration With Broader Planning

The reason DPM matters more inside a comprehensive planning relationship than as a standalone product purchase is the integration. A portfolio managed in isolation can be technically excellent and still produce suboptimal after-tax, after-estate outcomes if it's not coordinated with the rest of the picture.

What we coordinate:

For individuals and families:

• Asset location across registered (RRSP, TFSA, RRIF) and non-registered accounts for tax efficiency

• Cash flow planning so portfolios aren't drawn down at inopportune market times

• Beneficiary coordination on the underlying accounts

• Spousal income splitting opportunities

• Retirement income projections that include the portfolio's role

• Estate planning execution at death

For incorporated professionals and business owners:

• Coordination of corporate retained earnings investments with personal investments

• Tax-efficient placement of holdings between corp and personal accounts

• Integration with IPP investments where applicable

• Coordination with corporate-owned life insurance strategies

• Passive income management for small business deduction implications

• Eventual wind-down and corporate-personal asset transfer at retirement

Learn more about Personal Financial Planning → Learn more about Financial Planning for Business Owners → Learn more about Tax-Integrated Strategy → Learn more about Retirement Planning →

What the Portfolio Managers We Work With Look Like

We work with established Canadian portfolio managers — firms registered with provincial securities commissions, with strong compliance and reporting infrastructure, and with investment philosophies we understand and can stand behind.

What they generally have in common:

• Fiduciary duty as legally registered portfolio managers

• Transparent fee structures with no hidden costs or trailer commissions

• Professional infrastructure including dedicated compliance, custodial relationships with major Canadian banks, and proper segregation of client assets

• Investment philosophies grounded in evidence — diversification, asset allocation, cost discipline, behavioural awareness — rather than market timing or product-of-the-moment strategies

• Access for both personal and corporate accounts with appropriate handling of each

What varies between platforms:

• Minimum account size

• Investment style (passive/index, active, factor-based, ESG-integrated, etc.)

• Specific service model (high-touch private wealth vs. more streamlined platforms)

• Reporting tools, mobile access, and communication frequency

• Pricing structure (flat fee, tiered AUM-based, hybrid)

The right match depends on your situation. We'd rather connect you with a smaller, focused firm that fits than with a household name that's a poor fit. The selection is part of the work.

Fees and Transparency

The transparency point deserves its own section because it's where most clients have been burned in the past.

In a traditional mutual fund relationship, your management expense ratio (MER) is built into the fund's returns. A 2.2% MER on a $500,000 portfolio means $11,000 per year coming out of your returns — the full breakdown is pretty much invisible.

In a discretionary portfolio management relationship, fees are typically:

• Stated explicitly in your Investment Policy Statement

• Calculated on assets under management (commonly 1.25%-2.0% per year, lower for larger portfolios)

• Deducted directly from your account on a regular schedule (monthly or quarterly)

• Shown as a dollar figure on your account statement so you see exactly what you paid

Where the trade-offs sit:

• For some non-registered accounts, the portfolio management fee may be tax-deductible against investment income. (Confirm with your accountant for your specific situation.)

• The underlying securities held in your portfolio (stocks, bonds, ETFs) carry their own internal costs, but these are generally much lower than mutual fund MERs.

• Custody, trading, and reporting are usually included in the overall fee; ask before assuming.

The fee transparency isn't an accident — it's a structural feature of how DPM is regulated and how the platforms have chosen to compete. It's one of the strongest arguments for the model.

A Note for Incorporated Clients

Some of the most valuable applications of DPM are for incorporated professionals and business owners with meaningful corporate retained earnings.

Common scenarios:

• Corporate investment accounts — DPM portfolios held inside the operating or holding company, with attention to passive income management for small business deduction purposes

• IPP-related portfolios — investment management for the assets backing an Individual Pension Plan, aligned with the actuarial assumptions and funding strategy

• Coordinated personal and corporate portfolios — designing the asset allocation across both sides so the household-wide picture is tax-efficient, not just optimal at the corporate or personal level individually

• Pre-retirement wind-down — managing the gradual extraction of corporate-held investments as you transition out of active work

For incorporated clients, DPM is rarely the standalone decision. It's part of a layered corporate planning structure that may include HSAs, IPPs, corporate-owned insurance, and a tax-integrated approach across the whole picture. We design it as one plan.

Learn more about Individual Pension Plans → Learn about Corporate-Owned Life Insurance →

Frequently Asked Questions

Do you manage my portfolio directly?

No. We're not registered as portfolio managers. We connect clients with established Canadian portfolio management firms when DPM is the right answer for their situation, and we coordinate that mandate with the rest of the financial plan. The portfolio manager makes the investment decisions; we make sure those decisions are integrated with your tax, retirement, and estate planning.

What's the minimum I need to start with DPM?

It varies depending on platforms. Some we work with start at $250,000-$500,000 of investable assets, though some accept lower minimums for specific situations or growth trajectories. Below those thresholds, lower-cost ETF portfolios through an advisor or self-directed broker are usually more appropriate, and we can help structure those too. The transition from a smaller portfolio approach to DPM typically happens when assets reach the platform's minimum and the planning complexity warrants the integration.

How are you compensated?

When clients engage a portfolio management platform we've introduced them to, we receive referral compensation from that platform. The arrangement is disclosed in writing at engagement and is the same whether you find the platform yourself or through us — going through an advisor doesn't increase your fees. We work with platforms that we'd recommend regardless of compensation, and we're transparent about how the arrangement works.

Can I have both registered and non-registered accounts under DPM?

Yes. Most platforms manage RRSPs, TFSAs, RRIFs, LIRAs, non-registered accounts, corporate accounts, and (where applicable) IPP-related accounts under one coordinated mandate. This is a significant advantage of DPM over fragmented account-by-account management — the portfolio manager can allocate tax-efficient holdings across account types in ways that maximize after-tax outcomes.

What if I want to keep some accounts self-directed?

That works. Many of our clients have a DPM-managed core portfolio for the bulk of their long-term wealth, while keeping a smaller account self-directed for personal interest or specific holdings. The portfolio manager coordinates the overall asset allocation taking your self-directed holdings into account. The right split depends on your interest level and confidence in managing the self-directed portion.

What happens if I want to leave the portfolio management platform?

You can transfer your assets out at any time. You own the underlying securities directly; they're held in your name at the custodian. Transfers to another platform, to a self-directed brokerage, or to another portfolio manager are routine processes. There's no lock-up period or contractual obligation to stay. If a DPM mandate stops being the right fit, we help you transition out cleanly.

How often do I hear from the portfolio manager?

Most platforms provide quarterly reporting and an annual review meeting at minimum, with more frequent communication when something material happens (significant market events, life changes, tax-year planning, etc.). Beyond that, you generally have direct access to the portfolio manager if you have questions or want to discuss your situation. We also include the DPM mandate as a topic in our own planning reviews.

Is DPM right for someone in their 30s building wealth?

Depends on the account size. If you're in your 30s with $500K+ already invested and a high savings rate, DPM probably makes sense and the integration with retirement planning starts paying off early. If you're still building toward that threshold, a lower-cost ETF portfolio through a planning relationship is usually the right starting point — graduate to DPM when the assets and the planning complexity warrant it.

Can I get DPM access without a comprehensive planning relationship?

Most platforms accept direct clients without going through an advisor. The trade-off is you'd be responsible for the integration with tax, retirement, estate, and corporate planning yourself, or coordinating that across multiple disconnected advisors. The reason most of our clients work through us isn't access — it's the integration. If you're confident in handling the planning side yourself, going direct to a platform is a reasonable choice.

Let's Talk About Whether DPM Fits

If you have meaningful investable assets, an interest in lower-cost professional management, and want investment decisions coordinated with the rest of your financial plan — let's talk. We'll assess fit honestly, walk through which platforms might suit your situation, and explain exactly how the arrangement would work. No obligation, no pitch.