Flashcards in Discretionary Deck (8)
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1
Q
Fees chargeable if investing with a discretionary fund manager
A
- platform/wrapper fee
- discretionary managers initial charge
- discretionary managers AMC
- underlying fund manager charge
- dealing fees
- BO spread
- stamp duty reserve tax
- panel on takeover and merger levy
- ## VAT
2
Q
Four advantages of self selecting shares
A
- control
- lower costs
- concentrated portfolio can deliver greater returns
- not subject to managers short term performance pressures
3
Q
Four advantages of a managed portfolio
A
- diversification
- access to more possible investments
- managers expertise
- less admin
- more protection/ regulation
4
Q
Benefits to self select shares (5)
A
- control
- no advice charges
- lower ongoing costs
- share voting rights
- speed of transactions
5
Q
Five disadvantages to self select shares (5)
A
- no access to professional management
- less access to institutional funds
- time required to manage
- less regulation/ protection
6
Q
Explain why a DFM May purchase a collective investment (4)
A
- diversification
- access to assets otherwise not available / commercial property
- access geographical investments
- access to specialist knowledge
- cheaper
- using passives as a core and satellite approach
7
Q
Basis of advisory investment management and advantages (3)
A
- recommendation made to buy or sell and investment
- client then needs to give agreement first
- advantage is greater level of control
- and involvement
8
Q
Basis of description art fund management/advice and benefits (4)
A
- manager/adviser has right to buy or sell investments
- without seeking approval from client
- need to up date client on a pre agreed regular basis
Benefits:
- less responsibility regarding decisions for client
- investment timings can be made more easily
