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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