The changing landscape of independent wealth management

view original post

Historically, investors have looked to independent wealth managers to provide access to the entire spectrum of financial products on the market. This approach has been seen as the panacea of financial management, giving the client the flexibility and choice needed to create a perfectly bespoke portfolio.

However, with the huge increase in asset management companies (AMCs), independent wealth managers have a challenge to overcome. Creating strong lasting relationships with so many different AMCs is impossible. Financial wealth managers must look to create mutually beneficial relationships with those asset management companies who understand the importance of team working. When you are important to an asset management company, rather than just another wealth manager, that’s when you can create the best results.

Back in 2013, Blacktower Financial Management created one such professional relationship with Quilter Cheviot Investment Management, whose heritage can be traced back to 1771, is one of the UK’s largest independently owned discretionary investment management firms, focusing on providing and managing bespoke investment portfolios for private clients. Together Blacktower and Quilter Cheviot created the Nexus family of funds, focusing on diversification, quality and liquidity. The twin aim of growth with security was there at the beginning and has remained ever since.

Over the past eight years, the Nexus funds have become firmly established and hold assets of over £150m. During that time, the world has been a far from predictable place – we certainly did not anticipate Brexit, Trump or the Covid-19 pandemic. Despite the global volatility, Nexus funds have weathered the storms and indeed generated positive returns in the past 2 years. The Nexus Global Solutions Portfolio is an actively managed, globally diversified, multi-asset class portfolio with a dual focus on capital protection and growth. Nexus Global Dynamic Portfolio focuses on capital growth.

The key to generating consistently good returns on investment lies in attention to detail. Truly understanding and monitoring the individual securities within the fund enables Cheviot Quilter to outperform the market. They seek out winning companies with strong management teams and those who can maintain margins, making profits despite rising input costs. Good companies tend to stay good, and winners come from all sectors and not just the high-profile technology giants. Our investors’ hard earned savings deserve to be rewarded by earnings and dividend growth. In the long term that’s what matters.

There will always be many issues with the potential to disturb investors. For example, at the moment inflation is rising for the first time in a generation, but whether this upward pressure on prices will last is another matter. Central banks have indicated that interest rates are likely to rise for the first time in a decade or more and that the emergency measures put in place in 2008 are no longer needed. Covid appears to be moving from pandemic to endemic. How, collectively, we respond will have investment consequences lasting for years. We mustn’t forget the competition between the US and China and the challenges driven by climate change. The list goes on but there will always be investment solutions and finding these will drive returns.

The bottom line is that those able to invest taking a longer-term view have always been well rewarded. History confirms this. In addition, careful management, striking the right balance between risk and return, with an emphasis on selecting the right companies is required to navigate through these troubled times. Short-term volatility, however uncomfortable it may feel at the time, is an opportunity not a threat.

Advice from Blacktower Financial Management

Our wealth management service provides a dedicated advisor to help you plan your financial strategy to achieve your present and future goals and to navigate the uncertain financial outlook. We’ll work in partnership with you to identify the best mix of investments, the most appropriate management approach and we’ll regularly review your position to help you achieve maximum return on investment according to your risk profile. Contact one of the representatives at our Lisbon office today for your free no-obligation discussion.

Blacktower in Portugal

Blacktower’s offices in Portugal can help you manage your wealth to your best advantage. For more information contact your local office.

Antonio Rosa is the Associate Director of Blacktower in Lisbon, Portugal.

Blacktower Financial Management has been providing expert, localised, wealth management advice in Portugal for the last 20 years. We can help with specialist, independent advice on securing your financial future. Get in touch with us on (+351) 214 648 220 or email us at info@blacktowerfm.com.

This communication is for information purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, Blacktower is not responsible for any errors or omissions.

Related Posts