Discretionary Fund Management
By their very nature, stock markets can be volatile and having the ability to react quickly to market movements is becoming a necessity. The traditional fund management routes, where client portfolios are reviewed and adjusted on a regular basis, may not offer the best opportunities.
We have recently introduced a brand new service – Discretionary Fund Management – that will enable rapid reaction to any market changes. It may not be suitable for all clients, but we feel that it is an option that will suit some.
What is involved?
We work with professional fund managers to construct and maintain a range of investment funds tailored to your objectives and your attitude to risk. Once it has been set up, your portfolio manager will make day-to-day investment decisions within parameters that are agreed with you at the outset.
Who’s in control?
Although the portfolio manager will not consult you every time they make changes in reaction to changing markets, you still have control of your investments and retain the ability to alter your arrangements at any time if your circumstances or goals change.
What are the benefits?
The service brings a range of benefits:
1. Diversification: the fund manager will maintain a balanced spread of investments to reduce your exposure to risk
2. Continuous management: watching the markets requires specialist knowledge and close attention to a wide range of market indicators. Portfolio managers have these specialist skills, and their whole focus is concentrated on watching for and reacting to signs of change
3. Accessibility of information: a six-monthly valuation report will be produced by the fund manager, and ad hoc valuations can be obtained from the fund manager’s website
4. Mitigation of tax liabilities: you will receive an annual tax year report from the fund manager in which details will be provided of all investment income received and tax paid during the tax year. In addition, the fund manager will make sure that any CAPITAL GAINS TAXCAPITAL GAINS TAX
The tax payable on profits made on the sale of assets or property other than your home. and ISAs (INDIVIDUAL SAVINGS ACCOUNTS)ISAs (INDIVIDUAL SAVINGS ACCOUNTS)
Tax efficient savings plans which can hold cash, shares or life assurance, or a combination of all three. ISA’s were introduced in 1999 to replace TESSAs and PEPs. allowances are used to minimise your exposure to CGT and tax
What about my existing investments?
It should be possible to incorporate most existing investments including direct shareholdings into a discretionary fund management arrangement.
If you would like to consider the possibility of transferring some, or all of, your investment portfolio into a Discretionary Managed Fund, please contact us to arrange a free initial consultation to discuss further.