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Question 1

discretionary account

Answer 1

usually short shelf life, and opened for clients who are unable to tend to their accounts for a defined window (eg. travel or illness)

Question 2

PM role in a single-manager account

Answer 2

Single-manager accounts are directed by a single PM who selects securities, investment sectors and optimal asset allocation. The PM often maintains a model portfolio and then executes bulk purchases and sales based on the investment decisions of the model portfolio. The manager then allocates the sales and purchases to their respective clients’ accounts.

Question 3

In a separately managed account arrangement, where are each client’s securities held?

Answer 3

Each client has their own separate dedicated account for the selected investment to be directly held in. As the sub-advisor makes the investment decisions, the actual securities are debited and credited to the client’s dedicated account within the firm.