Trustee for Portfolio Managers
Portfolio-management firms manage discretionary client assets, and an independent trustee is what protects market trust and prevents misconduct. The portfolio-manager trustee plays a role similar to a fund trustee — but at the individual / institutional client level.
Trustee Duties
1. Discretionary-Trade Monitoring
- Verifying compliance with each client's IPS
- Ensuring proper segregation of client assets
- Watching intra-group trades and conflicts of interest
2. Client-Report Verification
Reviewing the accuracy and completeness of monthly and periodic reports issued to clients.
3. Fee Audit
Ensuring correct calculation of management and performance fees per contract.
4. Reporting to the SEO
Periodic trustee reports and breach notifications.
Kahkeshan's Approach
- A dedicated monitoring team with secure access to manager systems
- Automated alert thresholds for IPS deviations
- Trade-sample reviews monthly and ad-hoc
- Full independence from group investment activities
Stakeholder Benefits
For clients: assurance that asset management matches the contract.
For the portfolio manager: stronger credibility, more inflows, lower regulatory risk.
For the market: higher governance standards and trust in discretionary services.
The portfolio-manager trustee is an independent intermediary that defines the trust framework of discretionary asset management.