Important information for discretionary investment managers

Reporting

Discretionary managed portfolio fees

These fees will accrue daily and are deducted monthly on the 1^st of the month. If there are trades in progress on a client’s account, the fee will be deducted at the next available point.

Accrued fees will also be paid if a customer sells their investments or switches from one discretionary model portfolio to another.

The fee will be deducted from cash within your clients account, where this is insufficient it will be funded by selling units to cash for payment of the fee.

All fees are paid by BACS on the 25th of the month, unless this date falls on a weekend, when the payment will be made on the last working day before the weekend. 

You can add or vary the fee that you charge. When doing so, fees can be implemented at adviser firm level as well as at portfolio level. We would expect advisers to communicate any change in your discretionary managed portfolio fee to their clients, in particular any fee increase. We will be monitoring this behaviour on an ongoing basis to ensure that any changes are being appropriately disclosed.

There is a report for fees that is accessible on X-Hub, which will show you the fees that have been charged, however this does not confirm that the fees have been paid. Where a fee is present in the report but has not been received it will be included in the subsequent fee payment run.

Cash management

All cashflows into the model portfolio are always invested according to the model’s cashflow preferences. This is reinvestment into the portfolio on an align to target or proportional basis.

Cash may appear in the model portfolio if the funds in the model generate rebates – these payments are typically 3-8bps per annum.

Corporate actions

We will email details of corporate actions to the contacts you provide us with. We will not update portfolios or create trades prior to the completion of the corporate action.

This means that for any mergers or conversions you, as the discretionary manager, need to update your portfolio template with the new fund as soon as it becomes available. All existing holdings will be merged/converted although it may take up to 10 days for the new holdings to show. In this period we recommend that you do not attempt to rebalance your portfolios. If you need to take urgent action with any of the other funds, the asset switch functionality can be used.

Trades monitoring

All trades will be monitored after submission. In some instances, where important transactions are taking place on a client’s account, such as withdrawals, corrections or account maintenance, your instruction may not be able to be processed at the next valuation point. If this happens your instruction will be queued and will be completed as soon as possible. You can view queued transactions in the deferred transactions report.

If trades fail, they will be identified and processed in the back office where best pricing will be applied if appropriate.

Corrections

In the event of a trading error that is not the fault of Quilter, the discretionary manager will need to work with the advisory firm to work out how best to recompense the underlying client. We will not be able to apply unit adjustments to policies other than as top-ups which will need to be administered by the advisory firm.