PAM Guide to Wealth Management

Chapter Five - What are discretionary, advisory or execution only relationships?

There are three types of relationship that an individual can have with the private asset manager who is employed to manage their liquid investible assets. In essence, the difference between discretionary, advisory and execution only is the degree of involvement that the client has in the management of their assets. Which one is right will depend on an individual's circumstances, financial knowledge and personal preference.

You need to check the charges you will face from discretionary, advisory and execution-only services. You need to consider other costs, such as stamp duty and the bid offer spread. 'The cost of investing' covers these in more detail.

Whether you manage your investments yourself, or outsource them to a private asset manager, you need to decide if you want to hold direct stocks in your portfolio or collective investments.

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The PAM Directory is a comprehensive guide on comparative data focusing on asset managers, investment managers, private banks, stockbrokers, wealth managers and multi-family offices, who provide discretionary and/or advisory portfolio management services for private clients.

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