Discretionary Portfolio Management
**For illustration purposes only**
The Smith’s were referred to Clear Sky Private Wealth from an existing client. They are both 40 years old, and have twin 10yr olds. Alice is employed, and Adam runs his own business.
The Smiths had accumulated $300,000 in retirement savings up to the end of 2019, and up until now they have managed the investments on their own. Unfortunately, when the COVID pandemic started and the markets dropped, their investments suffered and they made some investments decisions during the past year that resulted in a $50,000 drop in value. Although the markets have now improved, the Smith’s investments remain at $250,000 and with retirement on the horizon they decided that professional portfolio management may help them meet their retirement goals and manage their risks more successfully.
The Smith’s first meeting at Clear Sky involved Mike Brintnell, our Portfolio Manager in the Edmonton office, and Steve Ambeault, our financial planner. At this meeting the Smith’s discussed their desire to manage their investment risk and to get their investments on track to retire at age 55. Although they incorporated a lot of risk into their investments in the past, now that they have seen the potential consequences of taking these risks, they would like to take a more cautious approach to investing in the future.
To help put the Smiths on a plan to reach their financial goals, it was agreed that Steve Ambeault and Mitchel MacDonald would have a follow-up meeting with the Smith’s to gather the information needed to prepare a financial plan.
Mike also reviewed the information that the Smiths supplied regarding their current investments and recommended that the Smith’s open RRSP’s, TFSA’s, and a joint non-registered account at Clear Sky Private wealth.
Mike explained that these accounts would be managed by our team, including Ren Liao, CFA who works full-time analyzing the markets and make recommendations to our portfolio managers on which trades to make in our client portfolios. With our discretionary accounts, we do not call our client every time a trade is executed. Instead, we decide which positions to buy, hold, and sell, and we meet with clients regularly to update them on their investment performance.
The trades that are made in our client’s accounts reflect the individual risk tolerances of our clients, with an aim to limiting account losses during market downturns.
As part of the account set-up process, the Smiths were able to sign a few forms that allowed their investments to transfer over to Clear Sky smoothly, and also to set up regular monthly contributions that would come directly from their personal bank accounts.