Glossary · product
Discretionary Mandate
Also known as: discretionary management, discretionary portfolio
- Definition
- A discretionary mandate gives the bank or fund manager authority to make investment decisions on behalf of the client within the agreed investment policy, without seeking pre-trade approval.
Discretionary mandates are the standard private-banking product for clients above S$1M who do not want to make every investment decision themselves. The mandate document specifies the investment policy (asset allocation, benchmark, currency, risk band, restrictions), the fee schedule, and reporting frequency. Discretionary fees are typically 0.5–1.5% of mandate AUM per year, separate from underlying product costs.
Source: Industry standard product
Related
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