Discretionary or advisory management?

A client’s decision to work with us on a discretionary or advisory investment management basis is very much a personal choice. It depends on how much input, control and time you want to put into your own portfolio management.

Discretionary investment managementMany of our clients prefer to work with Thomson Tyndall on a discretionary investment management basis. Where this is the case, an overall strategy is agreed and thereafter day-to-day decision making is delegated to your investment adviser, who will manage your portfolio and make changes when necessary. Clients who work with Thomson Tyndall on a discretionary management basis do so for a number of reasons:

  • Speed – As every investment decision does not require pre-approval by the client, discretionary management increases the speed of decision-making which is particularly useful in a volatile market.
  • Reduction in paperwork – The regulation of advisory management has led to increased paperwork and administration which can be both complex and time consuming. Many clients prefer a professional investment manager to take on this responsibility on their behalf.

As you would expect, this is a highly regulated activity which ensures safeguards are put in place for your protection.

Many of our clients begin on an advisory basis, with more involvement at first, then over time move onto management on a discretionary basis.

“We are not remunerated by fund managers to choose any specific funds. As a result, we are completely impartial and have no preference for any one management style or fund type. Our priority is to put our clients first and assess which management style will provide the best value for them and ultimately be in their best interests over time.”

Simon Akroyd, Consultant

Advisory portfolio management We also offer portfolio management on an advisory basis. This is where we can make recommendations based on your circumstances and attitude to risk; however, we require your agreement before any changes are made to the portfolio.

Some clients like to use a mix of both discretionary and advisory management. For example, they might mandate management of part of their portfolio on a discretionary basis but retain management on an advisory basis of their pension.

The value of investments may fall as well as rise and you may not get back what you put in.