Discretionary Services

Entrusting us with the duty of actively managing your tailor-made portfolio

Getting Started

Before engaging us to manage your portfolio, there are three critical decisions that you must make:

  • What is your attitude towards risk?
  • Are you risk seeker, risk neutral or risk averse? What are your investment objectives, both in the short and long run?
  • Do you prefer a discretionary or advisory investment management approach?

The answer to the last question depends on how much you wish to get involved in the overall management of your portfolio. Or, put differently, how much control over your portfolio management you are prepared to convey to your portfolio manager.

What is Discretionary Asset Management?

Discretionary Asset Management (DAM) is a mode of portfolio management in which all the investment decisions are made at the portfolio manager’s discretion for your account. This form of portfolio management enables the portfolio manager to make buy-sell decisions without referring back to you for each and every transaction. Put differently, in the context of DAM you will not be asked to provide approval for every decision that the portfolio manager makes in the course of running your portfolio. Nevertheless, the portfolio manager actions are guided by your investment objectives and attitude towards risk. As such, they are always within the boundaries commonly decided upon between the manager and yourself.

Is Discretionary Asset Management Suitable for You?

If you opt for a DAM service, then you basically hand over all your investment decisions and actions to a professional portfolio manager. This type of service is particularly apt for investors who are not experienced enough or simply don’t have the time to actively manage their portfolio and wish to relegate this responsibility to an experienced and qualified manager.

This however does not imply that if you decide to subscribe to a DAM-type service, you are completely cut-off from the evolution of your portfolio. You will be informed of your transactions within the day of their execution and will receive information about the returns and the risk level of your portfolio on a regular basis In addition, Assetwise’s team will always be available to provide you (even in person) with an explanation of its recent investment actions in the context of current and anticipated market conditions.

Discretionary Asset Management is a fully transparent procedure in the context of which all the investment decisions are implemented immediately. Indeed, the timely implementation of investment decisions is a key element for success within a rapidly evolving economic environment. Quite often, market conditions change at such a fast pace that any delay in the implementation of investment decisions is likely to incur substantial opportunity costs, thus affecting negatively portfolio performance (irrespective of its investment horizon).