A good discretionary fund manager (DFM) should add value and reduce risk across an adviser’s business. As nine out of ten advisers now outsource some or all of their investment management, there is significant risk involved in the due diligence and outsourcing processes.
Get it right and you streamline your investment process, develop stronger relationships with your providers, deliver appropriate solutions for clients needs and free up more time for financial planning. Get it wrong and your business could be subject to administration problems, back-office delays, poor performance, a lack of adequate investment literature for proposals and reviews, and loss of clients.
My role is simply to make it easier for advisers to work with Cazenove Capital. By getting to know you, we can provide investment solutions that fit your clients and your business needs. Here are two case studies that show how we work closely with advisers.
Case study 1: A full range of solutions
An adviser partner in Scotland has made Cazenove Capital an integral part of their Central Investment Process. While they use our bespoke discretionary management for their higher net worth and more complicated cases, for the most part they utilise our Model Portfolio Service (MPS). Our range of risk-rated and risk-targeted models available on the platform helped them with a problem we often come across when talking to advisers.
They had a large number (some £12 million) of assets across 150 clients, spread over a multitude of platforms, funds and products. By using the MPS investment solutions, they could ensure their clients had actively managed portfolios with the cash element monitored and maintained. They are now able to carry out reviews more quickly and efficiently; they are paid across all their clients; and, importantly, they have more time to spend with those who require more in-depth planning and advice.
Case study 2: Seeing the bigger picture
An adviser recently asked us for a proposal for a £600,000 pension transfer. The client already had a personal pension of around £600,000 in a ‘Lifestyle’ fund. He and his wife had ISA portfolios of £400,000 and £200,000 respectively, and he had £150,000 in equities, which he had been managing himself.
We put together a proposal that consolidated all of his assets with Cazenove Capital. It included an aggregate portfolio with the pension transfer assets being managed with a higher risk level, as the client felt he would never need this money and it was for his children. The ISAs and personal pension were managed in a lower-risk banding and his equities were managed and used to fund ISA portfolios.
The benefits for the client were simpler paperwork, one contact point, an investment manager looking after all of his assets and a reduced-tier rate. The adviser will now provide advice around the entire £2 million rather than £500,000. In addition, they have only one provider to analyse and arrange meetings with, one point of contact and just one set of paperwork.