How discretionary management works and its benefits

 

 

Discretionary management is entrusting the management of your investments to a professional, such as a bank or an asset management company.

More specifically, experts are responsible for making decisions: choosing investment vehicles, allocating assets and making adjustments over time. These decisions are taken based on your financial objectives, your investment horizon and your risk profile. You remain the owner of your assets, while specialists take care of managing your portfolio.

Do you need financial knowledge?

In self-directed management: yes.
In discretionary management: no – no knowledge or experience is required, but you must validate your general understanding of risks. 

How much time does it require?

Self-directed management requires regular monitoring of the markets.
In discretionary management, the portfolio manager handles decisions and monitoring on your behalf.

Do you keep control over your investments?

In self-directed management, you make all decisions yourself.
In discretionary management, you define the framework at the outset and can adjust your profile or terminate the mandate at any time.

• Professional expertise
  Portfolio managers dedicate their time to analyse markets, identify opportunities and diversify your investments while taking your risk profile into account. You benefit from expertise that would be difficult to acquire on your own.
• Time saving 
  No need to monitor stock market prices every day. Your manager handles it for you within the framework of the mandate you have defined.
• Optimised investments diversification 
  The manager allocates your investments among different asset classes, geographical areas and business sectors.
• Peace of mind
  During periods of high volatility, the manager adheres to the defined framework and avoids decisions taken in haste.