Whether you wish to undertake a straightforward one-off transaction, seek our advice or invest a lump sum for the future via a managed portfolio, you can be assured of a personal service from one of our knowledgeable and experienced investment team.
We will take the time to listen carefully to your needs and objectives
Is this service suitable for me?
You are willing to put your capital at risk
You are able to invest for five years or longer
You would like your investments to be managed for you
You are looking to invest a minimum of £50,000 in the funds service or £350,000 in the equity service
Farley & Thompson’s Discretionary Portfolio Management is a personalised service that enables our investment specialists to manage your portfolio on your behalf. It is suitable for a wide range of investors, from individuals and trusts to charity and pension accounts.
Our philosophy is very simple: we aim to deliver a straightforward service, free from complex investment products, which is easy for you to understand and monitor.
How does it work?
The service starts with an initial meeting, where we will get to understand your goals and priorities. When you sit down with one of our investment managers, they will help you to establish your attitude to investment risk and capacity for loss. We will use this information to create an investment proposal and scheme of investment; we will then manage your portfolio in line with your financial aims, personal values and longer-term objectives.
The Discretionary Management service is designed to give you peace of mind over your investments, knowing that one of our experienced managers will be handling the day-to-day running of your portfolio for you. They will monitor your investments and make decisions about them on your behalf, freeing you from the administrative burden that comes with running a portfolio.
How will the funds be invested?
We will create a diversified portfolio that provides broad exposure to a range of investment opportunities, across different asset classes and global markets. We will tailor individual investments to meet your expectations and personal circumstances set within the asset allocation framework of the PIMFA Private Investor benchmark indices.
All securities managed under our Discretionary service will be held in our nominee. You can elect to receive a regular income from your investments, or ask us to reinvest the dividend and interest payments on your behalf.
Whether you are a first-time investor, an experienced market watcher, or simply looking for a new investment manager, we will be happy to review your options and find the best possible home for your funds.
Discretionary Management comes with a choice of two investment options:
Discretionary Equity service from £350,000 — comprised of individual UK shares, bonds and collective investment funds
Discretionary Funds service from £50,000 — comprised of active, passive and thematic collective investment funds
As part of the service, we will keep you in touch with the progress of your portfolio and the developments taking place on your account. You can also contact us at any time for updates.
What are the charges for this service?
We aim to be transparent about our charges so you will always know what the cost of the service will be. Discretionary Portfolio Management is a fee only service comprised of a tiered management fee and a custody charge. Although we do not charge any dealing commission, some transactions attract Stamp duty and PTM levy. For the full list of charges relating to this service, please contact us and ask for the Discretionary Portfolio Management Schedule of Charges. The below is a summary of the current fee structure.
Discretionary Equity Service
Investment Management Fee
0.75% on the first £500,000 0.6% on the next £500,000 0.4% on the next £1,000,000 0.25% on the balance
Custody Charge
0.25% on the value of the portfolio
Discretionary Funds Service
Investment Management Fee
0.75% on the first £350,000 0.6% on the next £350,000 0.4% on the balance
Custody Charge
0.25% on the value of the portfolio
The management fee and custody charge is calculated on the mid-market value of portfolios monthly in arrears and debited to your capital account with VAT added where applicable
Key Facts
For investors who want their portfolio to be managed by a specialist
Day-to-day administration and investment decisions made on your behalf
Six-monthly valuation and performance summary
Regular progress updates and analysis of the wider market
Income and capital withdrawals at any time
Simple fee-only structure
For definitions, please click on the word or see our Glossary.
A hands-on approach requiring someone to act in the role of investment or portfolio manager. The aim is to beat the average returns of a particular market or index. Successful active investment management requires being right more often than wrong.
Additional Permitted Subscription (APS)
An allowance that enables individuals to pass on tax benefits they have built up within their ISA during their lifetime to their surviving spouse or civil partner.
Blue-chip equities
Are stocks issued by large, well-established companies that have operated for many years, have dependable earnings, and usually pay dividends to investors. A blue-chip company typically has a market capitalisation in the billions.
Business Property Relief
A relief from Inheritance Tax (IHT) that can be applied to the transfer of relevant business assets or investments. If a business, an interest in a business, or shares in certain unlisted companies meet the necessary qualifying criteria, they may receive 100% relief.
Capital Gains Tax
A tax applied to the profits when you sell an asset that’s increased in value and your gains exceed the tax-free allowance.
Collective Investment
A way for investors to pool their funds and buy assets collectively rather than individually. Collective investment products are usually managed by a professional asset management company which is paid a fee for doing so.
Consolidated Tax Certificate (CTC)
A summary of the income returns received on an investment portfolio each year by way of dividends and/or interest and any tax that has been deducted at source. The information can be helpful when completing a Self-Assessment tax return.
Defined Contribution (DC) Pension
A type of pension that provides benefits in retirement based on the contributions made and the investment returns achieved within the pension fund. It can also be referred to as a Money purchase pension.
ESG and Impact Investing
A style of themed investing that enables investors to support companies that are environmentally conscious, socially responsible and have good governance practices (ESG) or which are generating positive, measurable environmental or social benefits (Impact) investing.
Defined Benefit (DB) Pension
A type of occupational pension scheme that provides guaranteed benefits in retirement, predetermined by a formula based on an individual's age, earnings history and length of service.
Exchange-Traded Funds
Are index-tracking funds that are designed to replicate the constituents and performance of a broad index or sector. They can grow or shrink in size according to demand from investors as the underlying constituent companies will be bought and sold. The ETF itself is listed and is traded continuously throughout the day like ordinary shares.
Fixed-Interest Securities
Are corporate or government debt instruments that pay a coupon (an interest payment), typically semi-annually until the bond matures and is repaid. Bonds are the most common form of fixed-income securities and are a form of borrowing. An investor in fixed-interest securities becomes a lender to the issuer.
Funds (OEICs and Unit Trusts)
Are open-ended collective investments managed according to a specific theme or objective. Units are dealt off market directly with the fund management group or via a fund platform. Open-ended means the number of units in issue grows and shrinks according to demand and the dealing price will reflect the underlying value of the portfolio.
Grant of Letters of Administration
A legal document issued by the probate office allowing the named individual to administer an estate when someone has died and did not leave a will.
Grant of probate
A legal document which confirms the executors of a will have the authority to deal with the assets in the estate of someone who has died.
Illiquid
Illiquid refers to an asset that cannot be sold easily or quickly without a substantial loss in value. Illiquid assets tend to have lower trading volume and greater price volatility.
In Specie Transfer
In specie transfer means to transfer an asset from one provider to another in its current form, without the need to convert the asset to cash.
Individual Savings Account (ISA)
A tax efficient account that enables investors to maximise potential returns by shielding investment gains, dividends and interest from tax.
Investment Trusts
Are closed-ended collective investments structured as companies which are listed and traded on the London Stock Exchange and that invest in other companies. Closed-ended means it has a fixed number of shares in issue so the price is subject to supply and demand in the stock market and does not always reflect the underlying value of the portfolio (this is referred to as the premium (or discount) to net asset value).
Nil Rate Band
An amount which can be passed on to beneficiaries without incurring Inheritance Tax after death.
Nominee
A nominee is a body corporate entrusted as the registered legal owner on behalf of the beneficial (real) owner. A nominee company’s business is focused solely on holding or administering shares or other property.
Passive Investment
A style of low-cost, low-activity investment management that replicates or tracks a market or sector performance.
PIMFA Private Investor Benchmark Indices
A suite of indices that can be used as benchmarks to compare the performance of portfolios that have investment objectives similar to the strategy represented in the respective index. (PIMFA, which stands for the Personal Investment Management and Financial Advice Association, is the trade association for companies that provide wealth management, investment services and financial advice).
Probate
The legal right to deal with the assets in the estate of someone who has died.
Thematic Investment
Investing in companies that are focused on specific themes, trends, or sectors, e.g. technology.
UK Equities
UK equities, or shares, are units of ownership in a company bought and sold on a stock exchange. The shares of larger UK companies are traded on the London Stock Exchange and often referred to as “listed” shares.
Our mission is to build trust, provide clear and comprehensible advice, be accessible to our clients and strengthen relationships that last across the generations.
Authorised and regulated by the Financial Conduct Authority
Member of the London Stock Exchange
Farley & Thompson LLP is a Limited Liability Partnership registered in England and Wales under number OC324180
Registered address: Pine Grange Bath Road Bournemouth BH1 2NU
Photography by Phil Jackson, Harbour View Photography
Your capital is at risk. The value of investments and any income from them can fall as well as rise and you may get back less than you invested.
We use cookies to ensure you get the best experience on our website. By continuing, you agree to our Cookie Policy. Learn more about cookies and how to manage them here.OKCookie policy
