Wealth Management

Pic of woman dressed in suit

Hannah Beecham Feb  2 2011 12.49

Screening a Wealth Manager

There can be no more daunting a task than appointing someone to look after your wealth. So how do you go about it?

Few expats can manage a successful investment portfolio entirely by themselves. Not enough time is the usual excuse, but the more likely reason will be not enough expertise. As the old saying goes, ‘The only safe way of doubling your money is to take a fiver out of your pocket, fold it in half and put it back.’ All of which suggests that at some point in your investing life, if not for most of it, you will require the services of a money manager.

Where to start

So how do you find one? To begin with when looking for the right person, don’t just accept the spin. Whether it is a bank or a financial adviser there is no better proof of a manager’s ability than track record. What you are looking for is a manager who can demonstrate that they have consistently delivered good returns for their clients in all market conditions. Ask for proof in the form of testimonials and other references.

Another useful indicator worth checking before signing a contract relates to how the manager has added value to the portfolios he or she has managed through the asset selection process – that is what they buy, hold and sell, in a portfolio on a client’s behalf. If they cannot, or will not, produce such evidence, you should be wary of putting your trust in their decision-making abilities.

Portfolio's progress

During this discussion stage, ask how the portfolio manger will keep you informed of the portfolio’s progress. Ask how frequently the outcomes will be measured against your investment objectives and what will happen if these have diverged from your goals. Ask how often you can expect verbal and written briefings. Does the level of service being offered match your expectations?

Credentials' check

Check out not only the portfolio manager’s expertise and experience, but also that of the institution. Never mind the fat years, how has this company fared during market troughs? How is the manager supported? You are looking for a spread of market intelligence and analysis reflecting a team of experts that shows a good mix of age, experience, skills and qualifications.

Last, but by no means least, make sure you check that the investment management company is well-regulated with a proper licence. Here are our top 5 tips on choosing a wealth manager: 

  1. Check out the style and philosophy of the manager. Be clear you understand it and that you are comfortable with it. 
  2. Do they offer a good range of strategies that can carry you through the bad times as well as the good?
  3. Does the manager and his team have the relevant experience to suit you and your wealth management needs?
  4. How flexible are they in terms of adapting services and strategies where needed?
  5. How transparent is the service? For example, how often can you get access to your holdings and how they are performing?