Finding a wealth manager
How to select a wealth manager
Whether your portfolio is already managed by a professional, or you are seeking advice for the first time, finding a new investment manager can be a challenge. You are unlikely to have the time and energy to do extensive research. Hence your decision is likely to be guided by conversations with friends and family, broad searches on the internet, and gut feel. You may draw confidence from the protections built into the financial services industry, but you still need to find a manager you can trust.
Perhaps an even greater challenge, as with any significant relationship, is to find a firm that understands your needs. Selecting a wealth manager is likely to be one of the most important financial decisions you make. You should consider what is most important to you. This may be the investment approach, service levels, or simply whether the company is located near to you.
Successful wealth management should be a long-term project. It should last decades rather than years, with the potential to hand on to future generations. Hence it is essential to find the right relationship at the start.
Within the UK wealth management industry, there is a wide range of firms. You could choose an old institution with an established brand, or a global bank offering a range of services. Alternatively, the right firm might be a new dynamic boutique focusing purely on asset management. The boutique might prefer to keep a low profile, advocating the values of discretion and independence. Services offered vary greatly, and there are significant differences in the minimum size of portfolio required to become a client.
Once you connect with a manager, you are then likely to arrange a call or meeting. At this stage, you should be prepared to assess whether the firm has the expertise and capabilities to suit your requirements. Equally as important is whether the firm’s style and key individuals fit your character. It is wise to prepare a list of questions, and a decent manager should be more than happy to answer all your questions in full.
In the next article, we will discuss in detail what questions you might wish to ask a potential wealth manager, but also, prior to that, what questions you should consider yourself in order to determine your requirements.
A: Questions to consider prior to your search:
- Would you prefer a large institution or a smaller boutique?
- Would you prefer a discretionary or advisory service?
- How would you describe your financial situation, risk appetite, and objectives?
- How often would you like to have contact with your manager?
- Are you seeking a firm that specialises in responsible, sustainable investing?
B: Questions to ask the firm:
- How secure are my assets?
- Who are the key people and what are their qualifications and skills?
- What is the firm’s investment ethos and style of investing?
- How have the firm’s investment portfolios performed in the past?
- What are the general characteristics of the firm’s clients?
- How important is relationship management to the firm?
- Problem-solving & complaint handling: What if something goes wrong?
- What are the firm’s fees?
Click here to read our detailed guide designed to help you find the right manager.
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