What is advisory portfolio management?
This service is very similar to the Discretionary Portfolio Management arrangement but with some key differences. We still adhere to our proven methodology in that we assess your objectives, your tolerance for risk of loss and your investment return expectations and we still provide you with an investment policy statement that you will have to agree with before we can proceed.
The main difference, however, is that, unlike the Discretionary Portfolio Management service, your dedicated portfolio manager will not have the authority to conduct the routine buy or sell operations on your account before first obtaining your consent. This gives you the final word on all executable actions conducted within your portfolio.
Does it suit everyone?
For a start, it is typically aimed at seasoned, experienced investors who are accustomed to and comfortable with “pulling the trigger” with regard to investment decisions and who wish to continue doing so.
Many of these investors may have complex arrangements on existing portfolios that make granting a discretionary mandate a very difficult proposition so they elect to work with us on a more collaborative basis whereby we evaluate their circumstances and compile a strategy as usual but where they have the final word on which aspects of the strategy to implement.
It should be noted, however, that each recommendation made by the portfolio manager will ultimately have to be sanctioned by the client. In the absence of the client’s authorization, RJC Mitchell Consultants is unable to conduct any executable activity on the account and this may have consequences for the portfolio in terms of operational efficiency.
As with the discretionary portfolio management solution, this service includes the ongoing monitoring and review features that are so valuable when it comes to keeping the portfolio on track over the long term.