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The background
This UK family spanned three generations. 10 years ago, they sold a significant business asset. At point of sale, they appointed three managers, and a private bank with who they had an existing relationship, to manage:
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An open-ended investment company (OEIC)
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A family trust
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A charitable trust
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Personal accounts
A partner at a leading law firm asked us to provide a one-off review for the family, as a comprehensive review had not been carried out in seven years.
The mandate was to assess each manager’s performance against internal and peer benchmarks, and highlight any inconsistencies against investment policy statements.
Our process
Stage one
Our team presented their findings and a set of recommendations to the client and trustees, through a written report and follow-up call.
Key concerns were as follows:
- Two managers had used incorrect or misinterpreted risk levels.
- One manager changed benchmark mid-drawdown, while another’s was inappropriate.
- There were cost concerns relating to one of the managers, and changes and potential action points around underperformance, particularly where risk-adjusted outcomes were disappointing.
- For two of the managers, reporting was difficult to understand, particularly around performance.
- One manager had dramatically underperformed their benchmark, and a second was underperforming their internal and peer benchmark.
At this point, the client asked us to provide ongoing consultancy services to the family and trustees. Our remit was to help with analysis and risk profiling, manager selection, and ongoing performance monitoring.
Stage two
Our first points of action were to address the concerns raised in our initial report, working in conjunction with the family and their lawyer/trusted adviser.
After consulting the client, we:
- Drew up new investment policy statements
- Held two beauty parades involving family members and trustees, resulting in two new managers being appointed
- Reduced costs in both cases, providing better value
- Applied relevant benchmarks were applied to the other managers, and addressed risk concerns
- Put one manager under close review
The outcome
The family now has a single point of contact, along with simplified reporting, for each element of their complex estate.
The associated trustees are also comfortable that competent oversight is in place, supporting their fiduciary responsibilities.
What clients say
These video testimonials and our glowing reviews on VouchedFor, the UK’s leading independent review site for financial professionals, are evidence of the high standards we strive for.
Catherine and Paul
Pre/post-retirees wanting clear, trusted retirement planning
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Retirees seeking proactive support and security
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High-earning professionals building and protecting family wealth
Nico
High-net-worth individual wanting stress-free, professionally managed investments
960%
would recommend us to family, friends, or work associates.
950%
believe working with us has helped or will help them achieve their financial objectives.
950%
are very satisfied that we understand their needs and objectives.
