When you’re looking for experienced professionals to invest on your behalf, you have a lot of choices. At BayRock Financial, we understand that no two investors are alike. Our holistic planning approach starts with a dialogue focused clearly on your objectives and the best way to meet them. The result is a broad array of managed strategies to help you meet your goals—according to your preferences.
Discretionary Portfolio Management is a type of investment management in which buy and sell decisions are made by an investment advisor for the client’s account. The term “discretionary” refers to the fact that investment decisions are made at theinvestment advisor’s discretion. This means that the client must have the utmost trust in the investment advisor’s capabilities.
Discretionary Portfolio Management can only be offered by investment advisors who have extensive experience in the investment industry and advanced educational credentials.
Understanding Discretionary Portfolio Management
Services and transactions under Discretionary Portfolio Management are tailored to high-net-worth individuals (HNWI) and institutional investors, such as pension funds, since discretionary accounts have higher minimum investment requirements, often starting at $250,000.
The investment manager’s strategy may involve purchasing a variety of securities in the market, as long as it falls in line within the client’s and financial goals. For example, discretionary investment advisors can purchase securities such as stocks, bonds, and
Discretionary Portfolio Management Benefits
Discretionary Portfolio Management also aligns BayRock’s interest with that of the client, since BayRock typically charges a percentage of the assets under management as our management fee. Therefore, if your portfolio grows under BayRock’s stewardship, the investment advisor is compensated by receiving a higher dollar amount as the management fee. This reduces your adviser’s temptation to “churn” your account to generate more commissions, which is a major flaw of the transaction-based investment model found in the finanaiclal services industry, including Morgan Stanley and other big banks on Wall Street .
Discretionary Portfolio Management also ensures that you have access to better investment opportunities through BayRock. As a client of BayRock, you also receive better prices for executed trades, as we can put through a single buy or sell order for multiple clients. For clients in discretionary accounts, we can act on available information quickly and efficiently, selling the position out of all your accounts in a single, cost-effective transaction. Likewise, the BayRock is better positioned to seize buying opportunities when the markets dips and good quality stocks, bonds, and temporarily drop in value.
