Discretionary Fund Management
Our client brings the highest standards of professional, institutional investment management to individual investors, charities and trusts. The manager also partners with IFA’s and professional services.
Through its proprietary investment processes, the manager actively manages portfolios that are globally diversified across all major asset classes, including alternative investments. Investments may be held in a variety of tax advantaged wrappers, such as ISA's, pension schemes and offshore bonds. They have developed a discretionary wealth management service that is distinctive in five important respects:
• Risk and return is quantified, so that clients are clear what they should expect over both the short and longer term from their portfolio.
• Costs are kept to a minimum. Investment in the UK is via individual bonds and equities, providing transparency and low cost.
• Performance is central to the proposition. Investment decision-making is based on modern, quantitative disciplines that emphasise objectivity over emotion.
• Accountability is assured by aligning a composite benchmark to each client’s risk profile. This means that clients can see how the portfolio is performing against market indices of comparable risk.
• Personal service is an integral part of the offering. Each client has their own account manager and receives quarterly investment reports.
The manager has over £100m of assets under management.
The minimum investments is £100,000.
IFA’s and other professional advisers, including accountants and solicitors are increasingly looking at discretionary fund management solutions. Our client is the discretionary fund manager of choice to a number of IFA firms.
There are a number of reasons for advisers to look to outsourced discretionary fund management, including:
Reduced regulatory risk
The selection of investments and individual funds for clients by intermediaries is now a significant business risk.
The FSA are looking ever more closely into the research and selection criteria adopted by intermediaries when selecting investment recommendations for clients. These risks are removed when you outsource the investment management service.
Quality offering for your clients
The investment service is of a similar standard to that provided to the largest institutional investors. You and your clients deal only with experienced investment professionals at all times.
Client expectations management
Our risk profiling process ensures clients select the right asset mix for their needs and have realistic return expectations.
High calibre systems
All back office services for the manager are provided by one of the worlds leading investment services firms with a particular expertise in the delivery of simple but sophisticated solutions to the complex needs of private clients.
Process, performance and risk control
Modern, quantitative disciplines are applied to bring objectivity to investment decisions. Supported by research from some of the leading global financial institutions, the managers processes are designed to avoid the pitfalls associated with emotional responses to market movements.
The goal is to out-perform the client’s benchmark while at the same time limiting the risk of underperformance.
Improve your business
Build a valuable recurring income stream or enhance existing revenues from this area without increased business risk.
Reduce your PI cover costs by outsourcing investment management.
Increase the exit value of your business.
Through its proprietary investment processes, the manager actively manages portfolios that are globally diversified across all major asset classes. These include, but are not limited to:
Bonds
• UK fixed interest gilts
• UK index-linked gilts
• UK corporate bonds
• International bonds
Equities
• UK quoted stocks
• International funds
• Emerging market funds
• Smaller companies funds
Cash Alternatives
• Money market funds
• Short dated corporate bonds
• Bond hedge funds
• Life settlement funds
• Securitised loan funds
Equity Alternatives
• Commercial property funds
• Commodity funds
• Hedge funds
The manager has developed a deposit alternative portfolio for investors seeking a return on cash with little risk of loss, whilst providing high levels of liquidity.
Private investors typically turn to fixed term deposits with banks when they seek a return on cash without risk of loss. In the present environment however not only are returns on deposits unattractive, but the security of even the largest banks can no longer be taken for granted.
The portfolio is designed to provide the following investment characteristics:
• Target return (after fees) of 4-6% per annum
• Low volatility
• Broad diversification across a wide range of low risk investments
• Minimal risk of loss through default
• The ability to realise cash from UK bonds, global fixed income and alternative investments
• Tax efficiency
• A benchmark for performance comparison of 3 month bank deposit rates (LIBID)
The portfolio has, since inception in June 2006, returned approximately 45% (as of 31 Aug 2011), whilst the benchmark total return over the same period is just 17.5%.
