Discretionary Fund Management Services
What Is Discretionary Fund Management?
Discretionary fund management (DFM) is a bespoke service which delegates the management of the investment portfolio to a team of experienced fund managers. This service is usually better suited to financially sophisticated investors or, individuals with generally higher net worths.
This service allows the fund manager to buy, sell and manage the assets within the agreed-upon strategy. The strategy is predetermined and reviewed regularly to ensure that it is suited to your personal financial goals, risk tolerance, time horizon, and objectives.
This type of strategy can be direct to the investment manager, which allows access to some of the most highly regulated, and secure jurisdictions globally or, can be used within a tax-efficient “wrapper” if required, for tax purposes.
Why a DFM Service?
For expats, managing investments across multiple jurisdictions can be complex and time-consuming. Discretionary Fund Management can consolidate your investments and pensions into one managed portfolio, providing:
Cross-Border Expertise
Investment managers can tailor a strategy to suit your unique challenges, such as currency fluctuations, tax implications, and regulatory differences.
Global Investment Opportunities
With access to institutional-level investment options that are typically unavailable to individual investors. This can enhance portfolio diversification and potential returns.
Tailored Solutions
Expats often have unique financial needs, such as planning for repatriation or managing assets and taxes in multiple countries. DFM services are designed to address these complexities.
While DFM’s offer many advantages, they can have higher fees than your typical investment strategy which may be utilising mutual funds, index funds and ETF’s. If you have a complex situation or investment preferences, the DFM service may justify the extra cost for potentially higher returns.