Guillaume Jalenques de Labeau is considered an expert on wealth management after three decades as Chairman and CEO of Mansartis, a financial services and investment solutions firm that works with a wide range of clientele. One thing that makes Mansartis unique is the company’s asset management expertise in the arena of custom-made discretionary mandates. Discretionary mandates allow for a unique intersection of diverse and professionally managed investments in a comprehensive, global portfolio. The following article discusses the importance of discretionary mandates in relation to successful wealth management.
What Is A Discretionary Mandate?
With a discretionary mandate, a client can dictate how their assets and investment decisions are managed on a daily basis. The client trusts their portfolio manager to invest on their behalf based on a model portfolio and their own personalized investment profile. A leading wealth management firm like Mansartis will use the discretionary mandate as a tool to generate superior returns and investments, and ultimately to assist clients in their journey to prosperity. Each client has different constraints and objectives, though, which is why a discretionary mandate must be carefully customized to achieve superior returns.
How Is A Discretionary Mandate Customized?
Experienced portfolio managers know that a discretionary mandate must be carefully customized to ensure a personalized approach to investing that takes all the client’s needs and goals into account. In order to design a personalized investment profile and customize a successful discretionary mandate, portfolio managers must assess the personal situation of each client, whether the client is an individual or international organization. Along with assessment and analyses of the clients’ needs and goals, the portfolio manager must also consider relevant social and corporate governance issues to ensure an ethical approach to investing. Ideally, a dedicated and professional portfolio manager will make this process as transparent as possible, so clients feel confident in the security of their investments at all times.
What about the Fine Print and Other Details?
While different wealth management firms take different approaches to the discretionary mandate, the team at Mansartis finalizes each custom-made discretionary mandate by writing up a formal management agreement defining where assets will be allocated, any particular constraints on how the assets are allocated, how the progress of said investments will be reported, and the schedule of associated fees. At this point the firm’s team of asset management specialists joins in to help define how the client’s assets will be allocated and build the portfolio into its finalized version.
The portfolio manager cannot act alone here – he or she must work closely with other members of the team to create a personalized investment portfolio that works for the specific needs, goals, constraints, and tax/regulatory constraints of the client in question. In addition to fellow members of the wealth management team, the portfolio manager also relies on technology tools to develop investment reports and keep the client updated on the performance of their personalized discretionary mandate on a daily basis.
Here is a fan of Guillaume Jalenques de Labeau. Thanks for detailing “Discretionary Mandate.” I have learned a lot.
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