Glossary
Investment Horizon
An Investment Horizon is the period over which a client can keep assets invested without needing access to the funds. It is a key parameter in defining the Investment Strategy: a longer horizon generally permits a higher allocation to asset classes with greater return potential but also higher volatility.
At a glance
- The Investment Horizon is established at mandate inception and directly influences the permissible risk appetite within the portfolio.
- Life events such as retirement or a planned property purchase can shorten the horizon and require a strategy adjustment.
- Shorter horizons generally call for a more defensive allocation to protect against short-term fluctuations in value.
Frequently asked questions
In this case the mandate should be reviewed promptly. A shorter horizon may require adjusting the Investment Strategy towards more liquid and less volatile positions. Such changes are discussed with the wealth manager in a strategy meeting.
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.