Direct Clients - Bespoke
Whether the client is an individual, a trust or a pension, the process always begins with determining the objectives of the client and then looks at their tolerance for risk, their capacity for loss and their time horizon. These factors combined help the client to understand if their objectives are realistic. Then the investment manager will look at the broad requirements of a portfolio to achieve those objectives, within the constraints of the risk profile. The next stage is to narrow down any specific requirements which give the portfolio that bespoke element, whether this be a specific income requirement, CGT planning, or simply that the client values the discussion with the investment manager who is managing their investments.
We believe that the relationship between the investment manager and the client is an important one, and the building up of trust between the two parties is vital. All clients are different and are treated as such. A key role of the investment manager is to help the client understand what they can and cannot achieve. It is also important that the investment manager is able to convey to the client the current portfolio they are managing on their behalf in a language the client understands. The fact that the investment manager you meet is the person making the decisions, we see as another key differential between what we offer and many of our larger competitors.
Services for IFAs
IFAs play a key role in aiding clients to meet their financial objectives. They often have a greater understanding of their clients than anyone else. Philip has worked with IFAs throughout his career and understands the importance of the part the IFA plays in making sure the client is getting the portfolio they need. The IFA becomes an extra client and can ask questions that perhaps the underlying client would not think to ask. Also, by outsourcing the investment management to a discretionary manager, this allows the IFA to spend their time on the bigger picture. The combination of IFA and investment manager working together in harmony creates an unrivalled service for the client.
Services for Corporate Clients
When dealing with corporate clients, such as companies or defined benefit pension schemes, the risk profiling process has to differ as we are no longer concerned with the interests of just one or two individuals. However, the process is still as in depth and will draw on the knowledge of the corporate adviser or actuary.
Due to the nature of the actuarial process it is likely that the mandate will have tighter controls. Each mandate is bespoke. Once the mandate has been agreed then the investment manager will look at the broad requirements of the portfolio to achieve the objectives, within the constraints of the mandate. The next stage is to narrow down any specific requirements which give the portfolio that bespoke element, whether this be a specific income requirement or simply that the client values the discussion with the investment manager who is managing their investments.
Any monies required to pay out benefits should be held separately so that the portfolio is not continually required to raise funds. The management of the cash flow requirements is a key part of the discussions and something that the Investment Manager, Corporate Advisers and Pension Administrators would discuss on a regular basis.