Discretionary Investment Managers
As more people turn away from traditional high cost ways of investing and consider doing it themselves (DIY investing), they often discover it is more challenging than anticipated. Engaging a professional third party, such as SCM, is an attractive alternative for many savers, but finding a safe pair of hands that you trust and have confidence in can be daunting.
At SCM Direct we offer a simple, understandable, fair fee way of investing money that avoids layers of intermediaries and conflicts of interest. By giving us permission/discretion to look after your investments, you are allowing us to do all the legwork of creating and maintaining portfolios that will help you achieve your long term investment goals, as well as keeping a diligent eye on them on a daily basis.
Of course, this all means you have to put your faith in us to make the investment decisions that we believe will enhance your returns. To reassure clients of our proof of promise, the Founders invest significant sums of their own money along clients on exactly the same fees, terms and conditions.
Portfolios Not Funds
Most investors invest via mutual funds which are professionally managed collective investment schemes that pool money from many investors to purchase whatever the fund is investing in. The first mutual funds were established in Europe around 1774 but little has changed since then.
One of the main differences is that in a discretionary portfolio the holdings are all held in your name, rather than through holding units as happens in a mutual fund. Investors can go on-line at any time and see the full breakdown of holdings within their account, as well as the actual values of the various holdings as at last night’s closing values.
Discretionary portfolios have in the past been the preserve of wealthy individuals and large institutional investors but today’s modern technology allows SCM Direct to offer portfolios to investors with much smaller amounts to invest.
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