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Discretionary Fund Management

discretionary fund management

A Discretionary Fund Manager is an investment specialist, traditionally a stock broker or wealth manager, who is employed by a client in conjunction with their Independent Financial Adviser to run the investment portfolio on a day to day basis on their behalf.

Discretionary investment management offers a number of benefits to clients. It frees them from the burden of making day-to-day investment decisions, which can arguably be better made by a qualified portfolio manager who is attuned to the variances of the market. Delegating the investing process to a competent manager leaves the client free to focus on other things that matter to him or her.

How can this assist yourself?

Harrison Brook work with leading discretionary investment management that are tailored to each individual and institutional investors. Pension funds and lump sum saving can be invested into a range of module portfolios that each have their own discretionary investment manager. The investment manager’s strategy may involve purchasing a variety of securities in the market, as long as it falls in line with his or her client’s risk profile and financial goals. For example, discretionary investment managers can purchase securities such as stocks, bonds, ETFs, and financial derivatives.

By working with Harrison Brook and discretionary fund managers, your risk is gratefully reduced as an individual risk assessment is completed on an individual basis. Each client is different the risk assessment can prove vital to ensure that your funds work to your behaviour and understanding. Module portfolios can then be discussed on your profile basis and, each discretionary fund manager works alongside this when selecting the funds within the module portfolio.

Cost

As you would expect, using a discretionary fund manager and a module portfolio, it can carry a fund entry fee and an on-going management charge. There are many variations in the charges but we can assume that as an on-going management charge it will range from 0% to 1.5% per annum.

The entry fee of a discretionary fund manager and a module portfolio can vary from pensions, bonds and direct investments. Typically, 0% to 1% on pension and direct investments. Bonds have a further vary as many funds have an entry fee up to 5% and the annual management charge is reduced over a 5-year period.

Next steps

Do you hold a pension, bond, savings or looking for an investment structure that can have your hard earned capital working harder? Contact Harrison Brook and discuss how discretionary fund management can benefit yourself.

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