PAM Guide to Wealth Management


A core part of your wealth management will be investment management. Typically, the wealthier you are, the more likely you will be to appoint a number of private asset managers to manage your investible assets. This is because no one private asset manager is usually the best performer across one asset class let alone all asset classes. Diversification is key across both asset classes and asset managers. For smaller accounts, this diversification may be achieved via the use of pooled funds, or collective investments. It is likely that you will choose private asset managers to manage your portfolio in conjunction with your wealth manager, or investment consultant.

A stockbroker buys and sells stocks and other securities on the stock exchange, or over the counter, in exchange for a fee from clients. Generally, stockbroking is a highly regulated profession with brokers in the UK needing a recognised qualification from the Financial Conduct Authority's Appropriate Qualifications list.

Stockbrokers are usually associated with a brokerage firm or broker-dealer and are known by numerous professional designations, depending on the license they hold, the type of securities they sell and the services they provide. It is worth checking this is the case before appointing a specific stockbroker.

Stockbrokers also provide discretionary investment management services, though historically individual private client brokers have tended to be given much more freedom to invest as they see fit for each individual client in a bespoke portfolio, rather than following a centralised house investment style. Ultimately, you have to decide if you think your stockbroker has the ability to produce better results than an investment team within a discretionary investment management business.

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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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