Assessing the most suitable solution: what is the right direction for you

When it comes to designing the investment solution, selecting the assets to be held within our clients’ portfolios is literally the last thing we do.

Two equally important tasks come first. The first of these is developing an appropriate structure. The issues to be considered here include:

  • In which jurisdiction should the investment be held?
  • In what name or names should the investment be held?
  • Should the investment be written in trust, and if so who should be the beneficiaries and owners?
  • How do we ensure that the proceeds of the investment will end up in the right hands?

The answers to all of these questions are crucial in order for you to enjoy the security, tax-efficiency and control which you are seeking.

The second essential task is to identify the most appropriate custodian for your investment. There are several key considerations:

  • Since this will be the institution that actually holds your money, security is of the greatest importance; 
  • The custodian’s service standards must meet your needs;
  • Needless to say, the custodian must be willing and able to accept.

With issues like these in mind, we will normally select either a leading international private bank, or a large global asset manager.

Only with these key issues resolved will we then consider the content of your portfolio. We will bear in mind:

  • Your investment goals: what outcome are you seeking, and what is your time horizon?
  • Your attitude to risk: how much are you willing to take in search of higher returns?
  • The organisation of your wealth as a whole: how does this element fit within the whole?

Taking all of this into account, we will design a portfolio usually fully diversified across a range of markets and asset classes, and making use of the range of investment vehicles – such as segregated portfolios, insurance company funds that best suit your needs.

The value of investments can go down as well as up and you may not get back the amount you invested.