There are 2 broad models of portfolio management that can be used to define the relationship between a Private Bank and its client:
Discretionary Portfolio Management
In this model, the client delegates the management of his or her investments to a professional asset manager. The bank then defines and implements the investment strategy based on the profile and investment objectives of the client.
Advisory Portfolio Management
With this model, the client receives frequent advisories from the private banker or other specialists from the Private Bank. The role of the bank in this model is to design the client’s investment strategy, keep the client informed through proactive recommendations, and perform portfolio reviews. The implementation of the investment strategy is left to the client.