Traditional Values Modern Perspectives

Transcription

1 Traditional Values Modern Perspectives

2 Introduction to London Wealth Management London Wealth Management s (LWM) proposition integrates financial planning with discretionary or advisory investment management. Founded in 2008 Privately owned Limited Company with no external investors In excess of 200 million of assets under management with average assets under our Portfolio Investment Management per family, approaching 1m Independent advice Bespoke portfolio management Financial planning & investment management charged as one service and as a % of assets under management 02. Introduction to London Wealth Management

3 Contents The LWM Core Service: Financial Planning led Discretionary Investment Management 04 Advantages of LWM proposition 05 Becoming a client of LWM 06 Portfolio Management Service 07 Advisory Investment Service 08 Discretionary Investment Management 09 Advantages of Discretionary Investment Management 10 Disadvantages of Discretionary Investment Management 11 Alternatives to using LWM s Discretionary Investment Management service 12 Contacts 13 All forms of investment carry an element of risk to your capital. You may receive back less than your original investment. 03. Contents

4 The LWM Core Service: Financial Planning led Discretionary Investment Management LWM offers an integrated financial planning and discretionary investment management service. 04. The LWM Core Service

5 Advantages of LWM proposition Regular review meetings to continually monitor client objectives, time scales and in particular, attitude to investment risk. Access to extensive research from LWM and other third parties. This is the grounding for day to day investment decisions on both a strategic and tactical level. Portfolio management with a thorough understanding of a client s overall wealth and capacity for capital loss. 05. Advantages of LWM proposition

6 Becoming a client of LWM First Meeting Research Second Meeting Reviews The first meeting is held to establish a client s financial position and priorities. The fact finding will include questions on cash holdings, pensions, ISAs, investments, tax position, inheritance tax planning, attitude to risk and capacity for loss. This meeting is also used to explain LWM s investment management processes. Research is carried out by LWM on various policies and investments. A second meeting is held to report back with specific recommendations and if the advice is that it is suitable to invest a proportion of the client s wealth, a decision is made whether to use LWM s Portfolio Investment Management (Discretionary Investment Management) or the Advisory Investment Management Service. Regular review meetings are held to ensure risk levels are appropriate in portfolios and planning issues such as tax efficiency evaluated. 06. Becoming a client of LWM

7 Portfolio Management Service Portfolio Management Service Discretionary Investment Management is LWM s core service. Client assets will normally be held using the nominee services of Raymond James Investment Services (RJIS) and custodian service with Pershing Securities Limited (PSL). Reporting At least one meeting a year with portfolio updates and to discuss client objectives, attitude to risk, financial planning, etc. Formal written valuation reports are sent quarterly and access is available online via RJIS. Fee Structure Portfolio Management Services via RJIS platform This should be read in conjunction with the Schedule of Fees and Charges (SOFAC). Initial Annual Management RJIS Custody Dealing Discretionary NIL 0.85% plus VAT 0.15% 0.25% Advisory Managed NIL 0.85% plus VAT 0.15% 0.60% Self Managed NIL 0.45% plus VAT 0.15% 0.60% Portfolio Management Service Discretionary Advisory Self Managed Initial Planning Review Telephone Access to Adviser Market Commentary Portfolio Valuation Review Meeting Deviation Reports The annual management fees are charged quarterly in arrears, based on the value of the portfolio on the last day of the month, and taken directly from the portfolio. There may also be underlying fund charges dependent on the funds chosen. 07. Portfolio Management Service

8 Advisory Investment Service Advisory Investment Service Clients with less than 250,000 to invest will, due to costs and efficiencies, usually be directed to our Investment Advisory Service with a platform such as Skandia, Fidelity Fundsnetwork or Cofunds. Reporting Annual meeting to discuss attitude to risk and rebalancing of portfolio where agreed. LWM valuation/asset allocation provided and online access may also be available via chosen platform. Fee Structure We will charge an annual fee of up to 1% of the funds held depending on the complexity and requirement for reporting and reviews. These fees will be charged to the platform/wrap and will not be subject to VAT. In addition to these charges there will be underlying fund management charges depending on the funds chosen which will be confirmed to you via the provider Key Investor Information Document (KIID) and LWM Suitability Report/letter. Initial Planning Review Telephone Access to Adviser Market Commentary Portfolio Valuation Review Meeting Deviation Reports Transaction Costs Advisory Investment Service Including investment review Dependent on platform chosen 08. Advisory Investment Service

9 Discretionary Investment Management Having assessed your specific financial objectives and attitude to investment risk we then agree an investment mandate suitable with you. The portfolio is subsequently managed in accordance with that mandate. This gives LWM the flexibility to react to fast moving markets and changing economic circumstances, so we do not have to seek your consent to make changes to the portfolio. This is different to advisory investment management where we have to check and obtain authorisation with you before making any changes to the portfolio. LWM has four investment mandates 1. Absolute 2. Cautious 3. Balanced 4. Aggressive 09. Discretionary Investment Management

10 Advantages of Discretionary Investment Management Individually constructed portfolio. Allows discretionary manager to trade on an active basis. Contract notes are sent after each and every transaction. Open architecture approach to various elements of investment, such as ISAs, Pensions and Onshore taxable funds (this is also applicable to Advisory Management). Access to alternative investment asset classes such as commodities, hedge / absolute return funds, commercial property. Online access to view all the invested assets held under LWM s custodian service (Pershing Securities Ltd). Formal written valuations containing all trading history and charges - quarterly. Access to collective funds not always available via other platforms, at reduced initial and ongoing cost, using institutional terms. 10. Advantages of Discretionary Investment Management

11 Disadvantages of Discretionary Investment Management Not suitable for clients who wish to control his or her investment decisions. Higher costs may be unsuitable for clients needs or actual scale of client portfolio. Types of investments held within a discretionary managed portfolio can be sophisticated and therefore inappropriate for certain clients. Is Discretionary Investment Management Suitable For Your Needs? 1. Through your existing knowledge and experience is this style of management appropriate for you? 2. Are the levels and details of fees acceptable when compared to alternatives? 3. Do you want an investment manager to take day to day investment decisions on your behalf? 11. Disadvantages of Discretionary Investment Management

12 Alternatives to using LWM s Discretionary Investment Management service 1. Discretionary Investment Management With another provider (if chosen we are unlikely to offer our financial planning service on a stand alone basis). 2. Advisory Investment Management Whereby investment decisions are the responsibility of the client but are made based on the recommendations from his or her investment advisers. An advisory service is often deemed to be less expensive than a discretionary service but this is not necessarily so. It is often provided via a fund supermarket structure, allowing access to approximately 1500 collective funds. 3. Execution only/self Managed funds This is where investment decisions are made by the client and the adviser merely implements action on the client s instruction. The Financial Conduct Authority describes the above in the following manner: Discretionary The stockbroker will buy and sell shares for you without asking for your approval first. Advisory If you want help with your investments. The stockbroker will look at your individual circumstances and devise a strategy specifically to suit your needs, monitor your investments and make suggestions on buying and selling shares. Execution Only The stockbroker will simply buy the shares for you at your request. They cannot legally offer you any advice on your decisions and to keep costs down usually operate over the phone or internet 12. Alternatives

13 Contacts Ben Howland, Director founded LWM with Paul Hoban and Edward Tudor. Ben holds the Diploma in Financial Planning from the Chartered Insurance Institute and the Professional Diploma in Marketing from the Chartered Institute of Marketing. Ben has advised private clients since 2000 having joined the financial services industry in Paul Hoban, Managing Director holds the Advanced Financial Planning Certificate (AFPC) and Diploma in Financial Planning from The Chartered Insurance Institute. Paul has acted for private clients since 1995, having entered the Financial Services industry in Paul is LWM s pension transfer specialist. paul@londonwm.co.uk Edward Tudor, Investment Director holds the Masters in Wealth Management from the Chartered Institute of Securities and Investment. Edward is responsible for the investment management services of LWM and chairs the LWM Investment Committee. Edward has been actively involved in investment management since edward@londonwm.co.uk Timothy Norris, Investment Manager is a Chartered Wealth Manager and holds the Masters in Wealth Management from the Chartered Institute of Securities and Investment following a degree in Economics at Cardiff University. Tim joined LWM in 2009 and works along side Edward Tudor managing client portfolios. tim@londonwm.co.uk London Wealth Management 6 Kingly Street, London W1B 5PF T: Contacts

14 London Wealth Management 6 Kingly Street, London W1B 5PF T: London Wealth Management Ltd is Authorised and regulated by the Financial Conduct Authority (FCA) FCA FRN