PMS: Understand the Limits of a Power of Attorney

A power of attorney can authorise another person to act within defined boundaries, but broad or unclear powers create risk. Review the scope, duration, revocation process and permitted transactions with legal counsel. Never sign an incomplete authority or assume it replaces nomination and succession planning.

Institutional strategy insight

Contrarian investing. Contrarian PMS strategies examine opportunities where market expectations are depressed. The edge lies in independent evidence and downside control, not in opposing consensus for its own sake. Timing risk can be substantial.

Where this approach may be most useful

This strategy may be relevant when the investor accepts periods of visible disagreement with prevailing market sentiment. That describes a possible portfolio use, not a recommendation or an assurance of outcome. The final decision must follow the official documents, current facts, risk capacity, liquidity needs and an appropriate suitability assessment.

A question informed investors should ask

Which facts would prove the contrarian thesis wrong, and how quickly would the portfolio respond?

Truvest Insight: Delegated power should be specific, understood and reviewable.