Portfolio Management

What is it?

A Discretionary Portfolio Service is a bespoke investment management service.  An investment manager actively manages a portfolio, making changes to the investments without having to contact you first.  This means that changes are implemented timely and effectively.  All investment changes are designed to enhance performance, whilst controlling risk, and ensure that the structure of the portfolio remains in line with your objectives.

Who is it for?

Discretionary Portfolio Services are aimed at investors who may have large amounts of capital who wish to invest for the medium to long term and are prepared to take some investment risk.

How does it work?

Each client is assigned an investment manager who is responsible for agreeing a strategy with you, implementing it and ensuring that it continues to meet your needs.  The management company takes care of all the administrative aspects of a portfolio, from dividend collection to the provision of a year-end summary. Each portfolio is designed to take account of the investor’s tax position.  It also depends whether income is to be generated or just rolled up.

What is the tax position?

The tax provisions relating to discretionary portfolio services are consistent with those that apply to unit trusts, open ended investment companies (OEIC's) and  investment trusts, with income distributed to investors with the normal associated tax credit.  Capital gains made by the managers within the portfolio suffer no tax, but the investor may (dependent on his or her own circumstances) have a personal CGT liability on disposal.