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The glossary
Discretionary mandate

An investment management mandate where the client delegates the management of his portfolio to an investment professional. The purchase and sales are then executed by the investment professional at their discretion. The minimum amount to put in a discretionary mandate is generally over several hundred thousand CHF, making it a service usually reserved for High Net Worth Individuals. Usually, investments are not customized for specific clients. But in a discretionary mandate, the portfolio manager builds and follows a strategy tailored to their client’s risk profile and financial objectives.

Investor Corner

Discretionary management is a convenient way to have money professionally managed. While it frees the investor from the hassle of everyday investment decisions, discretionary management requires a high level of trust in the investment professional in charge.

Anecdote

Discretionary management does not make any reference to the type of investment product that will be used. What matters is the risk level of the security, which must always remain in the risk profile of the client and suitable for his/her strategy. Although, a small allocation tolerance is the norm.

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