Discretionary Management
Discretionary management lets a subscriber delegate all investment and rebalancing decisions on a compartment to a financial professional — the discretionary manager — within a framework agreed in advance according to the subscriber's risk profile and wealth objectives. It is also known as delegated management or managed portfolio.
How it works
- A discretionary manager is registered once and can then be assigned mandates.
- A mandate defines the discretionary framework for a given compartment, including its target allocation.
- A self-invested compartment can be delegated to a mandate — but only once that mandate has a target allocation defined.
- Once a compartment is under discretionary management, direct subscriber allocation is no longer allowed on it: rebalancing happens through the mandate instead.
Related
- Fund Switching & Rebalancing — the self-invested counterpart
- Glossary: Discretionary manager
- Error Handling → Discretionary Management errors