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Who knows about Discretionary Management and Advisory Management services from Stockbrokers ?

(5 Posts)
LadyBlaBlah Sun 09-Jan-11 18:15:56

I am hoping there are some wise people out there who could help.

My dad died and left a share portfolio which really hasn't been touched by my mum since he died, she has just been receiving dividends etc.

It is all proving a bit much to manage and wants it to be easier to manage.

Does anyone know what the pitfalls are of using a Discretionary Management service where the stockbroker basically manages the entire service with agreed risks (I think?) or the next level service where the changes are agreed etc?

I don't know much about the pitfalls, or anything really. A firm my dad used are offering these services to her - if anyone could advise whether these services will help her, or are too risky etc etc. it would be much appreciated information.

herhonesty Sun 09-Jan-11 19:06:22

alot of it depends on the value of the portfolio that your father passed on tbh - active management of a share portfolio is only really worth it if you have a very large sum of money invested. Active management does usually pay off if you have a good investment manager and are looking for significantly more growth from the portfolio than just say, normal ftse growth.

They will also administer your mothers dividend issues.

If the value is not massive then an alternative would be for the shares to be liquidated and invested in unit or investment trusts?

MarionCole Sun 09-Jan-11 19:14:22

Discretionary service will cost more but, in theory, should get you a better return as the investment manager should be able to make better investment decisions than you can (it being his/her job). Risk shouldn't be a problem as long as they properly understand your risk profile - they will match the investments to the level of risk you are prepared to take. Really, it comes down to cost and how much they want to charge you. A discretionary service will be easier to manage.

MarionCole Sun 09-Jan-11 19:16:03

What are they intending to charge? There are a lot of brokers out there so it might be worth looking around for someone you like at a price you like.

LadyBlaBlah Sun 09-Jan-11 19:49:13

Thanks - will find out the answers to your questions

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