What can a DFM do for you?

Financial planning
Views & insights

Keeping up with events that could impact your portfolio can be difficult. This is how a discretionary fund manager can help.

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30 June 2021 | 3 minute read

Financial markets can be very fast-moving, with shares, exchange rates and commodity prices fluctuating on the smallest piece of news.

This makes it very difficult and time-consuming to keep up with events that could impact your investment portfolio.

Using the services of a discretionary fund manager can help, by taking away the headache of constantly monitoring your portfolio. The manager – rather than the investor – makes decisions on what to buy and sell without seeking instruction from the investor.

Here, we consider how a discretionary fund manager could help you grow your wealth.

You benefit from skill and expertise

However, you do not give up all control of your portfolio. Rather, if you enter a discretionary investment management relationship you will be delegating the execution of an agreed overall investment strategy to someone with the right investment skills and experience – along with the backing of a full research team.

However, you do not give up all control of your portfolio. Rather, if you enter a discretionary investment management relationship you will be delegating the execution of an agreed overall investment strategy to someone with the right investment skills and experience – along with the backing of a full research team.

You take a collaborative approach to your investment strategy

This will consider your long and mid-term objectives, your true attitude to risk and capacity for loss, how any existing investments might be optimised, and so on. Once your wealth manager has a full picture of your financial circumstances and goals, they will then create a portfolio for you

You benefit from a bespoke portfolio

If you put money into an investment fund, you have no knowledge of the fund’s activities beyond a simple annual statement of investment performance. Discretionary management is a service, rather than a product. A bespoke portfolio will be created, reflecting your needs, and with input from research analysts and other experts in the team.

You are part of an engaging and dynamic process

A discretionary fund manager looks after people’s investments over a long period, and across multiple generations, moving from the accumulation phase in people’s 40s and 50s to active retirement in their 60s and 70s and then to passive retirement in their 80s and 90s.

You will need different strategies along the way and a discretionary fund manager will be able to achieve that in an evolutionary and dynamic manner. A regular review process is an integral part of the service.

Your discretionary manager may make changes to your portfolio on a day-to-day basis

This will be in line with the agreed objectives and at what the manager considers the appropriate time. You will also receive an annual report detailing the events in the portfolio over the year, but this will be more than a simple valuation – it will contain the information you need to compile your accounts, fill in your tax return or calculate your capital gains tax liability with your accountant.

Our experts can help you establish an effective investment strategy to meet your personal ambitions, monitor events carefully, and react accordingly.


The value of investments, and any income from them, can fall and you may get back less than you invested.
Neither simulated nor actual past performance are reliable indicators of future performance. Investment values may increase or decrease as a result of currency fluctuations.
Neither simulated nor actual past performance are reliable indicators of future performance. Investment values may increase or decrease as a result of currency fluctuations.
Opinions expressed in this publication are not necessarily the views held throughout Brewin Dolphin Ltd.

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