Discretionary Fund Managers

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What is a DFM?
A Discretionary Fund Manager (DFM) is a group of investment experts who are responsible for actively monitoring and managing the underlying portfolio. Their role involves reacting promptly to market opportunities or concerns. By granting them discretion, you authorise them to make investment decisions without seeking your explicit consent. This arrangement aims to optimise your investments by maximizing returns and minimizing losses.

Why use a DFM’s services?
One of the key advantages of working with a DFM is their ability to act swiftly in response to market fluctuations. They possess the expertise and resources necessary to identify and capitalize on investment opportunities. In a dynamic and ever-changing market, the ability to react quickly can make a significant difference in achieving favourable outcomes. This proactive approach is designed to enhance your investment performance.

By entrusting your investments to a DFM, you are essentially delegating the decision-making process to a team of professionals. The discretionary nature of a DFM’s role means that they have the authority to make investment decisions without seeking your prior consent. This delegation of authority enables them to execute trades promptly, taking advantage of favourable market conditions. It also eliminates the need for time-consuming consultations and approvals, streamlining the investment process and potentially increasing efficiency.

Meeting your risk requirements
However, it is important to note that your risk profile remains a critical factor in the management of your investments. Should your risk tolerance or investment goals change, it is essential to communicate these changes to Path, as your financial advisor. Only after discussing and agreeing upon these changes with you will the DFM be notified and adjust their management approach accordingly. This ensures that your investments align with your evolving financial objectives and risk tolerance.