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The Glossary
Advisory mandate

An investment mandate in which the client makes the ultimate buy and sell decisions while their financial advisor gives them advice and recommendations based on their risk profile and financial objectives. This is a tailored service generally provided by a person or a team at a private bank, an advisory boutique or an investment management firm.

 

Investor Corner

Investors in advisory mandates keep full control over their portfolios. They generally get to talk to financial or investment advisors who provide guidance, while portfolio managers execute the trades. Investment bankers are the ones finding sources of capital for business deals.

 

Today

Advisory mandates are flexible mandates that allow clients to follow their own opinion. They tend to gain popularity as access to financial education increases and people grow more curious about managing their own money.

 

Anecdote

An advisory mandate can look quite attractive as it is sometimes cheaper than discretionary. However, it requires a lot of time and effort from clients, as their approval is required for any transaction.