FAQs

Q1. What is your investment management style?

We do not have a specific style. Some portfolios are run against comparators such as the FTSE All Share or The Association of Private Client Investment Managers and Stockbrokers (APCIMS) (Private Client) benchmarks whilst for a number of clients we see our prime objective as providing real returns after tax that are better than cash on deposit.

Q2. What investments do you use for clients?

We use a wide variety of investments ranging from direct equities through to different types of collective instruments including Investment Trusts, Unit Trusts, Hedge Funds and OEICS (Open Ended Investment Companies).

Q3. How do you decide which instruments to invest in?

We carry out regular reviews of what is happening on the international economic and political front and the conclusions have a strong influence on how we invest.

Q4. What are your current views on the overall investment environment?

In the past, our views have run counter to much of the conventional thinking and we try to avoid being “one of the herd” unless our views actually reflect the consensus of the majority. Our website will often carry commentary on our latest thinking.

Q5. How important is tax in the investment decision making process?

For most of our clients, the discussion starts with tax and finishes with investments. In other words, the prime consideration when carrying out a review of a client’s affairs is to determine what his or her or the family’s tax position is prior to giving consideration to the investment aspect.

Q6. Are you able to provide regular income for those clients who need to derive an income from their portfolio?

Our preferred approach is to agree with the client a level of drawing from the portfolio and then make regular payments directly into their bank accounts. This means that clients know when and what value of funds will be arriving in their bank account. Also, such arrangements can easily be modified if required.

Q7. Do you run model portfolios for clients?

Generally speaking, our clients have existing investments, which can make it more difficult to run standardised portfolios. In many cases the tax implications of existing investments compromises the ability to bring portfolios into a standardised form.

Where possible we do however attempt to bring the overall disposition of a new portfolio into line with our target asset allocation (i.e. broad sector exposure). As a result of this background, portfolios tend to remain somewhat personalised to each client or, if required, family grouping.

Q8. How do you measure the performance of your client portfolios?

For many UK Clients we use the APCIMs (Association of Private Client Investment Managers) benchmarks, which have been developed with Private Clients specifically in mind. We use the “total return” series that include the effect of income rather than the indices that just include capital values. In reality this is a demanding benchmark to use since the costs of dealing are not reflected and there is no allowance for investment management fees. The specific benchmarks are Growth, Balanced and Income.

For other clients we use cash as the benchmark and our objective is to provide real returns after tax. Our approach therefore, reflects the fact that many clients are more defensive in their attitudes towards investments than during the long years of the global equity bull market.

Q9. Do you have facilities for clients who need to keep their assets outside of the United Kingdom?

A number of our clients live outside the UK and in other cases they may be UK Resident but not Domiciled for UK tax purposes. We have facilities for holding client assets, both securities and cash in the Isle of Man where the Royal Bank of Scotland International acts as our Custodian and Banker.