Unique investment solutions for wealth managers. Benefitting from change

Transcription

1 Unique investment solutions for wealth managers Benefitting from change

2 Responding to today s evolving investment landscape Foreword by Alexandra Haggard CEO, The European wealth management industry is undergoing irreversible regulatory change, from requirements for greater transparency to the abolition of retrocessions. We have already experienced a number of these changes in the UK and it is clear from what we have seen that businesses will need to change the way they operate to meet these challenges head on. The case for recommending third party funds is diminishing and a new vertical business model is emerging. Successful wealth managers are providing their own branded in-house funds for their clients. This increases the challenge of delivering investment excellence. As a leading investment consultant to wealth managers, advising on over 70bn 1 in the sector, can help you deliver investment excellence and evolve your business model. In the next few pages we explain how our skills and experience can help, and the value that can bring to your business. We look forward to working with you. Alexandra Haggard, CEO 1 As at 30th September Source: Associates Limited.

3 Five reasons to work with 1. We have proven experience to help you change the way you offer investment solutions to your clients. We have advised St. James s Place, the leading FTSE 100 wealth manager, for over 15 years, which included the recent implementation of the UK Retail Distribution Review. 2. Our manager research process helps you provide your clients with access to talented individuals from around the world. We offer manager selection on a truly global basis, going far beyond locally available or mainstream retail funds. 3. Our rigorous approach is built around the delivery of investment excellence. Painstaking portfolio analysis means only the finest managers are recommended. We are thoughtful and deliberate in their hiring and replacement. 4. We can support you in your own branded in-house fund range. You can reduce the visibility of other brands, and our extensive analysis reduces the risk of selection errors which can lead to disappointing results. 5. Working with enables you to focus on client acquisition and retention while controlling costs. Our team provides you with a clear and auditable investment process with detailed customised reporting.

4 Helping you change your business model At, we help wealth managers and banks develop their own fund range, rather than selling third party funds. This model has become even more advantageous given the impending changes with MiFID II. The advantages of developing your own funds managed by managers selected by are far reaching: Access outstanding manager talent anywhere in the world Create significant competitive advantage through product differentiation Enhance corporate value through creation of own-brand funds Increase revenues and profitability by combining manufacturing and distribution Improve regulatory control Enhance client reporting Reduce visibility of other brands Integrating our investment expertise Typical retail manager universe Global manager universe The Retail Distribution Review (RDR) in the UK led to an inevitable consolidation amongst wealth managers as businesses struggle to compete for a relatively static pool of assets. Successful businesses have moved towards a vertically integrated model, manufacturing and distributing their own fund solutions, increasing their competitive advantage and improving their business economics. In light of new regulation including MiFID II, we see the European wealth management market heading the same way. Through a partnership with, we provide our clients with the confidence that their investment solutions are distinctive, integrated and dedicated to delivering investment excellence. Research Wealth manager Recommend individuals to manage separate accounts, with subsequent ongoing monitoring Funds Wealth manager s advisers Guy Beech, Head of Business Development Investors

5 Client case study: St. James s Place Wealth Management Profile: A FTSE 100 UK company Assets of over 73bn 1 Leading UK wealth manager Strategy: Create a leading range of investment solutions Tenure: Working with since 1999; starting assets 2.7bn 1 Our role: Result: Advice on investment structure and strategy Manager research: discovery and selection Ongoing manager and portfolio monitoring Proactive idea generation Product development Manager change Transition management Reporting Successful fund range Asset growth supported by investment returns and differentiated products 30% of appointed managers in their investment propositions exclusive to SJP in the UK 1 We have worked with for more than 15 years and continue to be impressed by the quality of their manager research and monitoring capabilities. Our managers regularly tell us that no other consultancy subjects them to such scrutiny. Chris Ralph, CIO St. James s Place Wealth Management We work closely with management teams and investment committees, as an integral part of their investment offering. We are proactive partners in generating ideas, bringing differentiated views and embedding our exacting standards to address challenges and build the best investment solutions for our clients. Nathan Gelber, CIO 1 As at 30th September Source: Associates Limited.

6 as your investment cornerstone Our manager research process gives you access to outstanding investment talent globally, often not available to the wealth management community. Research: Discovery & Selection We leave no stone unturned in the search for market leading investment returns. We use our own evidence-based manager research process. This proprietary, forward looking analysis takes a holistic view of the manager, including how they make decisions. This rigorous process covers over 100 reports and 300 analytical checkpoints. Portfolio Management: Manager Monitoring & Changes Our ongoing assessment of the manager s portfolio and regular manager dialogue is a separate function, adding an additional layer of scrutiny on an ongoing basis. The approach remains consistent, with in depth analysis of holdings and portfolio trading activity using proprietary analytics. When required, we recommend manager changes to help avoid terminal decline in returns. Global COVERAGE Our London based team has genuine global coverage working with talented investment managers around the world Milwaukee Seattle Salt Lake City San Francisco Los Angeles Edinburgh Toronto Boston New York Washington Atlanta Hong Kong Tokyo Singapore Cape Town Sydney

7 Contact details Guy Beech Head of Business Development +44 (0) Old Bond Street London, W1S 4PX +44 (0) Local country representatives Germany, Austria and Switzerland (German speaking) Philip Kalus France, Luxembourg and Belgium Francois Defferriere fdefferriere@alfipartners.com Switzerland (French speaking) Eric Bonneville ericbonneville@alfipartners.com The information and opinions contained in this document are for sole use of those to whom it is intended and no reliance shall be placed on such information and opinions by any other third party. Neither Associates Limited nor any of our associated companies, agents, licensors or delegates make any representation or warranty expressed or implied as to the completeness, accuracy or timeliness of the information or of any opinions expressed herein nor do we accept any liability for any losses, costs, liabilities or expenses (to the fullest extent permissible by applicable law including, without limitation, any consequential losses or loss of profit) which may arise directly or indirectly from use or reliance on the information. No responsibility or liability is accepted by us or any of our associated companies, agents, licensors or delegates for any omissions or errors. Any information relating to past performance of an investment or investment service is not necessarily a guide to future performance. This document and its content is our copyright and may not be reproduced, distributed and/or disclosed in any manner. Associates Limited is authorised and regulated by the Financial Conduct Authority. Associates Limited 2015 All rights reserved