Guided stock portfolios are the method of choice for most Canadians when investing for the future.  Gone are the days of finding a good stockbroker.  Today more than ever, we have a massive expertise gap in stock picking with most financial planners now pushing clients into MFs and managed accounts.  While SMAs and UMAs (separately managed accounts and unified managed accounts) are used with large investment accounts to provide a better investment return they still have embedded fee-based structures that are designed to protect the advisor and the brokerage firm, with the goal of limiting potential damages to their client’s portfolios.

Large firms will showcase their sophistication in wealth management, financial and estate planning, trusts, business planning, and business successions.  These firms offer guided stock portfolios with highly disciplined and proprietary investment strategies that automatically buy and sell individual securities to maintain the investment objectives and reduce risk.

Christine’s Tip:

Proprietary programs that follow specific methodologies for picking and choosing different stocks such as managed programs will have varying annual fees.  It’s a good idea to do your homework before agreeing to a SMA or UMA that you are unsure of.  Remember, this is your future they’re impacting if the portfolio strategy goes sideways in the market.