Non Discretionary Pms Agreement

A non-discretionary PMS agreement is a type of investment management agreement in which the investment manager is bound to follow specific investment guidelines and restrictions outlined by the client.

In simpler terms, the non-discretionary PMS agreement is an agreement between the client and the investment manager that clearly defines and outlines the investment strategies that the investment manager can pursue. Unlike discretionary PMS agreements, non-discretionary PMS agreements do not give the investment manager complete autonomy to make investment decisions on behalf of the client.

The non-discretionary PMS agreement is ideal for clients who want a more hands-on approach to managing their investments. They are designed to provide clients with more control over their investment portfolio while still benefiting from the expertise of an investment manager.

One of the key benefits of a non-discretionary PMS agreement is that it allows clients to set specific investment goals and objectives. These could include investment returns, asset allocation, and risk tolerance. By setting clear guidelines, the client and investment manager can work together towards achieving specific investment objectives.

Another advantage of a non-discretionary PMS agreement is that it allows clients to have a more active role in the investment process. Clients can review their investment portfolio regularly and make changes or adjustments as needed to ensure that their investments are aligned with their personal financial goals.

Non-discretionary PMS agreements are also useful for clients who want to limit the investment manager`s ability to invest in certain securities or asset classes. For example, if a client does not want to invest in certain industries or geographical regions, they can include these restrictions in the non-discretionary PMS agreement.

Overall, a non-discretionary PMS agreement can be a valuable tool for clients who want a more customized approach to managing their investments. By working closely with an investment manager, clients can create a personalized investment strategy that aligns with their financial goals and objectives while still benefiting from the expertise of a professional.