Governance
Discretionary Mandate
An arrangement where an investment manager makes decisions to buy or sell assets without client approval for each transaction.
What is a Discretionary Mandate in Family Offices?
A discretionary mandate in the context of family offices is an arrangement where an investment manager is authorized to make investment decisions on behalf of the family office without needing prior approval for each transaction. This allows for more agile and timely management of the family’s investment portfolio, aligning with their financial goals and risk tolerance.
Benefits of a Discretionary Mandate
Discretionary mandates offer several benefits, including professional management, quick decision-making, and the ability to capitalize on market opportunities without delay. This can be particularly advantageous for family offices seeking to optimize their investment strategies while maintaining focus on long-term wealth preservation and growth.
Related Terms
Asset Management
The direction of a client’s cash and securities by a financial services company, usually an investment bank.
ViewDiscretionary Mandate
An arrangement where an investment manager makes decisions to buy or sell assets without client approval for each transa...
ViewInvestment Strategy
A plan that outlines how the family office will invest its assets.
ViewPortfolio Management
The art and science of making decisions about investment mix and policy to match financial objectives.
ViewRisk Management
The process of identifying, assessing, and mitigating risks that could affect the family office.
View