The major aim of the services offered is to outperform benchmarks listed in the mandate; this is called providing alpha.
The services provided are usually tailored for institutional business, pension funds and high-net worth individuals.
The most common investment products are stocks, bonds, ETFs and financial derivatives.
[citation needed] Due to the nature of the service, discretionary investment management firms provide a mandate in order to ensure that the services that are offered meet the aims of the client's financial goals.
[2] Investment management fees can include: In the UK, the regulatory authority for discretionary investment management companies is the Financial Conduct Authority.