The glossary
Discretionary mandate
A discretionary mandate is a bespoke investment management service, typically chosen by High Net Worth Individuals. It involves entrusting a portfolio to an expert investment manager who makes autonomous buying and selling decisions.
Key features of a discretionary mandate:
- Personalised investment strategy: Tailored to each client’s specific risk profile and financial goals.
- Autonomous decision making: Investment professionals operate with discretion, making decisions without needing client approval for each transaction.
- Entry threshold: Generally requires a minimum investment of several hundred thousand CHF. However, Alpian makes discretionary mandates accessible for everyone with its revolutionary “Managed by Alpian” solution.
- Client-manager partnership: Focuses on aligning investments with the client’s long-term financial objectives.
Benefits of a discretionary mandate:
- Customised portfolio management: Unlike standard investments, portfolios are uniquely tailored.
- Expert management: Clients benefit from the expertise of seasoned investment professionals.
- Strategic asset allocation: Investment decisions are well-informed, strategic, and aimed at achieving specific financial outcomes.
Opting for a discretionary mandate means choosing a highly personalised approach to investment management, ideal for individuals seeking tailored strategies aligned with their unique financial aspirations.
Investor corner
A discretionary mandate is a convenient way to have money professionally managed. While it frees the investor from the hassle of everyday investment decisions, discretionary management requires a high level of trust in the investment professional in charge.
While the discretionary mandate provides a convenient and hands-off approach to investment management, it’s important to note that it’s not the only option available for investors seeking professional guidance. Another equally viable and popular choice is the advisory mandate.
Anecdote
Discretionary management does not make any reference to the type of investment product that will be used. What matters is the risk level of the security, which must always remain in the risk profile of the client and suitable for his/her strategy. Although, a small allocation tolerance is the norm.
There’s more!
Discover the key differences between a discretionary and advisory mandate, and find out which aligns best with your financial goals and decision-making style.