Discretionary Fund Management Questions Answered


If you are looking to step up investing and are looking for expert advice, then discretionary fund management may be the tool you are looking for.

A discretionary fund manager is an independent financial expert who manages a fund according to a set of parameters.

These can either be tailored to a personal risk profile of a wealthy investor or model portfolios offered to a broader range of clients.

What does a discretionary fund manager do?

Their job is to make investors more money while safeguarding the fund if markets start to drop

How wealthy does an investor have to be for discretionary fund management?

This depends on particular wealth managers offering the service. The rule of thumb for bespoke portfolios is they start with at least a £250,000 investment.

If the fund is a model portfolio that is risk-rated but not bespoke, the entry threshold is often much lower.

How do I find a fund manager?

Be ready for a lot of online research, networking and personal recommendations to draw up a shortlist. You can even speak to an IFA specializing in the sector or look at a list of discretionary fund managers on the Aviva web site

How do I know if a fund manager is right for me?

Picking a manager is a personal choice as well as an investment choice. You need to look at a number of factors and how they sit with you, including:

  • The manager’s reputation
  • Investment strategy – does this match your attitude to risk and offer the returns you are looking for?
  • Fees and charges – do the returns outweigh the costs?
  • Performance – Is the manager able to deliver on investment promises consistently?
  • Customer service – can you access your account or deal with someone who can when you need to?
  • Ask how they are currently dealing with successful and unsuccessful investments

Can my IFA do manage investment funds for me?

Most wealth management companies will have access to discretionary fund managers. IFAs tend to outsource the work to bigger firms, so it makes sense to go direct if you can to pay a lower charge for advice as you will only deal with the one firm.

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Chris Ferguson

About Chris Ferguson

Chris formed Credence to bring credible financial advice to the offshore marketplace. Chris has been in financial services throughout his whole career, with experience in the GCC, United States, United Kingdom and Australia. Chris entered the financial services sector to enable as many people as possible benefit from freedom and choice in life by making good decisions rather than experiencing stress and anxiety over money.

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