Discretionary fund management

A discretionary fund manager is a professional investment manager who manages an external portfolio linked to your international bond, within agreed guidelines.

These guidelines set out how the portfolio should be managed, taking account of the level of risk you’re comfortable with, your financial needs and goals, and your tax position.

The discretionary fund manager then makes investment decisions for the portfolio in line with those guidelines.

Why use a discretionary fund manager?

A discretionary fund manager can:

•    Professionally manage your investments on an ongoing basis.

•    Monitor markets and review portfolios regularly.

•    Make investment decisions without requiring approval for every transaction.

•    Keep your portfolio aligned with its agreed investment objectives and risk approach.

Your financial adviser can help you decide whether using a discretionary fund manager is suitable for your needs, objectives and attitude to risk.

Fees

Through our range of open architecture bonds, you can choose to have your investments managed by one or more discretionary fund managers, without increasing the ongoing product charges of your international bond. The selected discretionary fund manager will apply their own fees directly to the external portfolio. These fees are separate from the charges for your international bond and will reduce the value of the portfolio.

Where your investments are held in a model portfolio, VAT is usually not applied to the discretionary fund manager’s fees. If your portfolio is managed on a bespoke basis, VAT may be added to their fees. This does not apply to the Premiere Europe Account or Wealth Preservation Europe Account, where VAT is not applied to discretionary fund manager fees.

Choice

You can use a discretionary fund manager with the following products:

• Premiere & Premiere Europe Accounts
• Wealth Preservation & Wealth Preservation Europe Accounts
• Prestige Accounts
• Controlled Access Accounts

You can select a provider from the list of DFM Partners that are available for your product type.

The availability of a discretionary fund manager may vary depending on the product and jurisdiction. Inclusion on this list does not constitute a recommendation by Canada Life. Your financial adviser can help determine whether a particular DFM is suitable for your needs.

How to add or change a discretionary fund manager?

If you are applying for a new account, confirm your chosen discretionary fund manager on the application form.

If you already have an account and want to add or change a discretionary fund manager, you will need to complete an Investment Administration Form. 

Once you choose a discretionary fund manager, we open an external portfolio with them in Canada Life’s name. The portfolio is held as an asset of the international bond and is managed by the discretionary fund manager in line with the agreed investment approach.