How discretionary portfolio management works: a guide to hands-off investing
20 July 2026
Managing investments successfully takes time, knowledge and ongoing attention. While many people are comfortable contributing to a pension, ISA or a general investment account (GIA), keeping track of markets and making informed decisions can become increasingly challenging as wealth grows. The stakes also become higher.
Whether it is an inheritance, a business sale, a bonus or the sale of a property, larger sums of money often bring greater responsibility and more complex investment decisions. This is particularly true following major financial events.
Many people recognise this, and 43% of UK adults say it would be very appealing to find a service where a professional investment manager makes day-to-day investment decisions on your behalf, within an agreed strategy. For investors who want professional support without needing to make day-to-day investment decisions, discretionary investment management can offer an alternative approach.
If you’d like to find out more about what discretionary investment management is, please click here.
What happens during the consultation stage?
Every discretionary portfolio management relationship begins with a conversation.
Before discussing specific investments, your Adviser will spend time understanding your circumstances and what you want your money to achieve. This often includes discussing your financial goals, existing assets, future plans and investment experience.
These conversations are important because effective portfolio management should start with the investor, not the investments themselves.
The consultation stage helps build a clear picture of your objectives and creates the foundation upon which every future investment decision is based.
Capital at risk
Capital at risk
Please do remember that as with all investments, your capital is at risk. Past Performance is not an indication of future performance.
What happens when a proposal is created?
Once your adviser understands your objectives, the next step is developing a proposal.
This brings together everything discussed during the consultation stage and outlines how your portfolio could be structured to support your goals.
The proposal considers factors such as your investment time horizon, appetite for risk and preferred investment approach. It also provides an opportunity to discuss how different asset classes may contribute to your long-term objectives.
At this stage, investors often gain a clearer understanding of how professional management differs from managing investments independently. Rather than focusing on individual investment ideas, the emphasis is placed on creating a coherent long-term strategy.
The aim is to ensure every part of the portfolio works towards a clearly defined objective.
How is a managed portfolio built?
Once a strategy has been agreed, the portfolio can be constructed.
A key part of the management of investment portfolios is asset allocation. This refers to how investments are spread across different asset classes, such as equities, funds, bonds and alternative investments.
Different types of investments behave differently under changing market conditions. As a result, diversification remains one of the most important principles in investment portfolio management.
Rather than relying on a single investment, sector or region, a diversified portfolio spreads risk across a range of opportunities. This helps create a more balanced approach and can reduce the impact of volatility in any one area of the market.
At Killik & Co, portfolios are typically built using a range of investment strategies and asset classes, with investment decisions informed by both specialist investing teams and independent research.
The result is a portfolio designed around the client's objectives rather than a short-term market view.
Capital at risk
Capital at risk
Past performance is not a reliable indicator of future results. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Is discretionary portfolio management really bespoke?
Within discretionary portfolio management you can have both bespoke portfolios and model portfolios, they are not mutually exclusive and both play an important role in a discretionary solution depending on the scenario, risk profile and goals of the client.
No two investors have exactly the same goals, and discretionary investment management allows those differences to be reflected within the investment strategy. This is particularly important given over one in ten (13%) UK adults say they would be hesitant to use a discretionary investment management service because they feel it would not be personalised to their circumstances.
How do discretionary managers respond to market events?
One of the biggest advantages of discretionary investment management is the ability to respond to changing market conditions in real time.
Markets are constantly influenced by economic data, company results, interest rates and geopolitical developments. These events can create both opportunities and risks for investors.
With an advisory service, recommendations often need to be discussed and approved before action can be taken. While this approach suits some investors, it can also slow the decision-making process.
With discretionary management, investment managers can act more efficiently because they do not need approval to make changes within your agreed investment approach. This allows them to adjust portfolios when appropriate while remaining within the agreed strategy. For some investors, this can raise concerns around control, with 25% of UK adults saying they would be hesitant to use a discretionary investment management service because they worry about losing control over investment decisions. In reality, all investment decisions are made within a framework that has already been agreed with the client.
That does not mean portfolios are constantly traded. Successful investing often requires patience and discipline. However, when conditions change significantly, discretionary managers have the flexibility to respond quickly on behalf of their clients. And in many cases, the frequency of changes doesn’t have implications for trading charges, helping to align the interests of managers and clients.
Capital at risk
Capital at risk
Please do remember that as with all investments, your capital is at risk. Past Performance is not an indication of future performance.
What happens after the portfolio has been built?
Markets evolve, personal circumstances change and financial goals can shift over time. Regular reviews help ensure a portfolio continues to reflect these developments.
At Killik & Co, clients receive biannual reviews to discuss investment performance, portfolio positioning and any changes to their objectives.
These reviews provide an opportunity to step back and assess whether the strategy remains appropriate while ensuring investment decisions continue to support long-term goals.
How do Killik & Co's clients stay informed without making daily decisions?
28% of UK adults say they would be hesitant to use a discretionary investment management service because they do not fully understand how the service works. A common misconception is that discretionary portfolio management means handing over responsibility and hearing very little afterwards.
In practice, communication remains an important part of the relationship.
Through Killik & Co’s Managed Investment Service, clients continue to receive reporting and updates, allowing them to understand how their investments are performing and how their portfolio is being managed. They also have access to their investments through myKillik, providing visibility whenever they want it.
This means clients can remain informed about their investments without needing to monitor markets every day or make every portfolio decision themselves. Rather than stepping away from the process, discretionary investment management allows investors to focus on their long-term goals while experienced professionals take responsibility for the day-to-day management of their portfolio.
The research was conducted by Censuswide, among a sample of 2,000 UK Nat Rep. The data was collected between 17.06.2026 - 19.06.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles
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