Avenues to Success

The investment approach is classified into two categories: Discretionary agreements and Non-Discretionary (also known as Advisory) agreements. These two approaches determine who has the final authority on the investment decisions made in the account on an ongoing basis. Regardless of the chosen approach, KDT continues to monitor the investments under management and always maintains its fiduciary responsibility to the client. When choosing between the two, it is important to understand the key differences:

advisory services

The Investor retains KDT with access and management role, however there is an emphasis on guidance, with every and each investment decision and change only being implemented upon Investor’s authority.

discretionary services

The Investor retains KDT with access and management role, and delegates the transaction, decision making and implementation to the Advisor in accordance with the agreed mandate.

Discretionary Asset Management

  • Control: KDT is delegated at the start with the investment decisions without needing the client’s approval for each trade.

  • Responsibility: The manager handles buying, selling, and managing the investment portfolio based on the client’s investment goals and risk profile (to include suitability and appropriateness questionnaires)

  • Best For: Clients who require that their investment assets are delegated to a third party, or simply prefer to leave KDT with the sole responsibility around the investment decisions that is aligned with the investment goals and risk profile agreed upon.

Non-Discretionary Asset Management

  • Control: The Agreement between the client and KDT confirms that the client will hold the final decision on all investments, with KDT’s role as providing advice and recommendations.

  • Responsibility: The client must approve each transaction (buying and selling of investments) before it is actioned.

  • Best For: Clients who prefer the advisory-nature of the service ultimately seeking to keep final decision-making responsibility of the trade decisions.