Glossary
Discretionary Asset Management Mandate
A Discretionary Asset Management Mandate is an authority under which the wealth manager makes investment decisions independently within agreed Investment Guidelines and the client's Risk Profile, without seeking prior approval for each transaction. The client delegates full operational management.
At a glance
- The wealth manager acts independently within pre-agreed Investment Guidelines, without consulting the client on each transaction.
- Responsibility for individual investment decisions rests with the FINMA-regulated manager, provided the guidelines are observed.
- Past portfolio performance from discretionary mandates is not an indicator of future results.
Frequently asked questions
Under a Discretionary Asset Management Mandate the wealth manager decides independently within agreed limits. Under an Advisory Mandate the client receives recommendations but retains the final investment decision. Which model is more suitable depends on the client's available time and preference for active involvement.
Part of the topic
Discretionary Mandates
This entry is for general information purposes only and does not constitute investment, legal or tax advice. It is a simplified summary of the legal position and tax treatment.