Investment Management Services

Question 1

Describe discretionary management

Answer 1

• Client gives discretion to manage their investments
• Manager makes changes / manages portfolio without referring to client
• They operate within constraints of client objectives and agreed strategy

Question 2

Describe advisory management

Answer 2

• For clients who still want to be involved with investment decisions
• Manager discusses any changes with client who makes the decision
• Usually more expensive
• Asset allocation may drift depending on whether client agrees to recommended changes
• Timing of trades and therefore prices can be different for each advisory client

Question 3

What is an investment mandate?

Answer 3

The instruction that guides an investment manager in the management of a client’s portfolio