Feature: Delegation Vs Abdication – Who’s Managing your Money
Financial planners have always viewed managing clients’ money as an important part of their role and here at Heritage we pride ourselves on getting the most from your investments by reviewing them regularly. We actively manage our clients’ investment portfolios by using independent asset allocation models and comprehensive fund research.
And to provide the best service possible to our clients we often work alongside experts in the field of fund management to help ensure clients’ investments are worked to their full potential.
In recent years, an increasing number of wealth management companies have set up discretionary management divisions which invest heavily in research and whose sole remit is to actively manage clients’ investment portfolios introduced to them by independent financial planners.
Managing money on a ‘discretionary’ basis means that an investor is appointed a personal investment manager who constantly monitors their portfolio and can react immediately to market changes and make fast-action investment decisions on their behalf, in line with the remit set out by their client.
This more bespoke investment service is generally available for portfolios above £100,000 although in today’s market, some companies are pitching in at lower levels. It can also take care of all your investments, such as pensions, ISAs, unit trusts, bonds and shares in one go.
For portfolios up to £500,000, investments would usually be held into ‘collectives’, which are pooled funds such as unit trusts, investment trusts, and OEICs. Larger portfolios are more likely to be invested directly into a personal basket of UK shares and bonds, with overseas assets normally still held in collectives.
The fund managers with whom Heritage works alongside are always pleased to speak directly and often meet up with our clients, which helps them gain a better understanding of their investment philosophy and what makes them tick.
We believe that the three-way partnership between the investor, the financial planner and the fund manager offers a service that fits perfectly the needs of today’s clients, as well as to market movements.
Is a discretionary management service right for me?
To make it easier for you to decide if a discretionary management service sounds like the right move for you it may be helpful to consider the following questions:
- Is your portfolio of ISAs, pensions, shares, bonds worth more than £100,000?
- Are your investments still held in the original funds?
- Would you like your investments to be professionally managed and monitored on a daily basis?
- Are you happy to ‘let go’ of the responsibility for managing your investments?
- Would you like a cohesive approach to your investment management?
- Would you like direct access to the person who makes the investment decisions on your behalf?
- Would you prefer your financial planner to spend more time looking at the ‘bigger picture’ in managing your planning, such as creative tax planning and researching the most appropriate products?
If you can answer ‘yes’ to one or more of these questions then contact Heritage today and talk through what you require from your investments to ensure you make an informed decision.
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