Investment Business Services Flashcards
What does it involve offshore
Management, admin & custody of open & closed end investment funds
Discretionary & non discretionary asset management
Outline fund management
Professional management of assets & funds
Provide specialised management services/ experts
Unit Trust start with pool of £ from many investors / fund manager invests with intention to provide better return / units issued to investors in proportion to amount invested/ owns companies capital
Diversification / spread risks
Outline the portfolio management services provided
Private portfolios managed for benefit of one/ usually specific sum of money
Execution only
- client instructs firm on investment decisions
- firm must implement decision at best cost
- manager signs docs
Advisory management
- firm provides advice on investment management services
- client makes final decision
Discretionary management
- customer empowers investment manager to exercise discretion / as they see fit
- regards to buy, sell or retain investments in order to meet client objectives
- set parameters
Consultants are sometimes used to review portfolio performance upon receipt of valuations to ensure correct management
Questions asked to successfully structure a portfolio
Accessibility of investment/ funds
Clients attitude to risk
Ethical investment requirements
Family circumstances
Tax efficient of investment portfolio
Residency/ domicile
How much investment/ time frame
Sufficient protection against inflation
Income/ capital growth requirements/ objectives
Background / criminal records
Source of wealth
