Wealth management

What is wealth management?  

Wealth management is the broad term given to a service that focuses on investing and managing client’s ‘wealth’. Ordinarily this is not focused on financial planning, but on the firm offering the service, and can range from investment only to more broad services including tax, estate and retirement services being offered too.  

Wealth management can be provided by in-house solutions, such as ‘model portfolios’ which form the core of many companies’ business propositions to clients or external providers who may specialise in certain fields, such as 'impact’ investing.  

Many ‘wealth managers’ now partner with financial planning firms, and it is becoming increasingly popular to see wealth management firms establishing their own financial planning arms, which for the investment management service provided, is provided only through their in-house investment management services.  

Wealth management services – what sort of services you can expect when you seek wealth management?

The primary service that will be offered will be investment management. This will ordinarily encompass a range of investment solutions spanning from in-house model portfolios through to bespoke-built investment portfolios for high-net-worth clients.  

This service could also provide more niche investment styles too, incorporating specific investment preferences, such as taking a more ‘mindful’ way to investing, incorporating additional investment overlays such as the impact to the environment the company has, the social impact it has and the corporate governance of a company, more commonly known as ‘ESG’ investing.  

This service will ordinarily be offered on a ‘discretionary’ basis, meaning no ongoing interaction from the client is required, instead a ‘risk mandate’ is agreed and the way in which the investment is managed, at the ‘discretion’ of the investment manager.  

Other services offered may be around guidance of various tax structures that can be used as well as various tax allowances available to client, such as annual funding allowances, (e.g., ISAs and pensions) and annual investment-related allowances, such as capital gains, dividends, and savings.  

Wealth managers these days too are expanding into other areas such as financial planning software to enrich the conversation around how much risk to take and the focus for investing the money, however this is not frequent practice.  

When it comes to broader client needs, ordinarily a wealth manager will find themselves restricted, therefore may work in collaboration with other firms to provide a comprehensive package when combined, e.g., accountant, lawyer, mortgage broker, private banker, financial planner.    

What wealth management services do TPO provide? 

The Private Office are specialists in delivering both financial planning and wealth management services in partnership with each other. Wealth management / investment management is one of our strengths and is one of our core services offered to every client.  

With our in-house investment committee, steered by Toni Meadows and supported by some of the industry’s leading experts in investment analysis, TPO are able to offer our clients a suite of model-portfolios as well as working in collaboration with chosen ‘best in class’ providers from all areas of investments, including a specialist in tax-led investing (VCTs, EISs), US-UK client-specific investing and ‘mindful’ investing which incorporates both ESG and ‘positive impact’ investing, something we hold close to our hearts.  

The core of our investment proposition is our model portfolio range, inclusive of 25 model portfolios spanning both discretionary (your ‘hands off’ approach) and advisory (working together with an adviser) ways in which to work with clients.  

Our portfolios are created for all levels of risk, from cautious to adventurous and benefit from not only our investment committee and investment team’s insights and inputs, but also from select industry-leading consultants, who feed into how our investment strategies are built, reviewed, ran and evolved over time, looking at both ‘big picture’ factors, such as global economics and various assets class performances and ‘small picture’ factors, such as meeting fund managers throughout the year and understanding fully the underlying holdings of investment strategies and the suitability and strategies behind why and for how long such investments are held.  

At TPO we are proactive in our investment management style and when working with external providers, run a comprehensive and ongoing analysis to the suitability of the overall market, new entrants and our panel of select providers and their standing to remain appointed to be on our panel of providers and products we choose tow work with.  

Why is wealth management important?  

The right investment solution to pair with a client’s Financial Plan is paramount to their long-term success. Aside from the rare few who do not need to invest to achieve their ambitions, the rest of our clients, through proper wealth management support and services offered by TPO, benefit from knowing how and why they are investing, are able to have their own personalised rate of return benchmark they need to achieve their objectives and are able to very efficiently limit the amount of risk they take whilst attempting to maximise their returns.  

This ensures the suitability of how money is being used, for what purpose without taking excessive risk or over-investing, a common mistake we come across. By having clarity over how you are going to achieve your objectives and having your own bespoke benchmark, you can keep track of how close you are to achieving your objectives and will have the confidence in why you are taking a certain level of risk and how your assets are being invested and managed, with complete transparency along the way.  

Without such understanding, we find many who come to us simply trying to get a better return whilst not understanding risk and having concerns over how best to invest and protect their wealth.  

What are the benefits of wealth management?

Wealth management is designed to provide results and peace of mind. Wealth management provides a well-managed solution for growing your wealth for future needs. Without such guidance, people are faced with an enormous choice and opportunity to be misguided, take the wrong levels of risk, be subject to underperformance and allow their emotions to run their investments strategy instead of logic, something everyone is susceptible to.  

Wealth management provides a rules-based, comprehensively considered way of investing that can be tailored to your objectives. This means controlling the amount of risk being taken to maximise returns, avoiding excessive risk taking.  

By using a ‘wealth management’ or ‘investment management’ service that is offered, you are able to allow a team of professionals, who analyse and invest into opportunities as their career, to take the reins - combining the enormous amount of analysis, management and implementation that goes into running a top performing investment strategy.  

What fees do we charge for our Wealth management services? 

At TPO, we are planning led, as opposed to investment-led, meaning that when we work with clients we build them a bespoke Financial Plan, which is designed exclusively toward achieving their objectives whilst keeping them safe to threats, then complement this with the right investment solution for them (wealth management).  

Our fees are never higher than 0.95% and are inclusive of both financial planning and investment management.  

When working on a discretionary basis, due to our size and assets under management, we have been able to reduce the additional ongoing fee to work on this mandate, down to an industry-low ongoing fee of 0.17%.  

Where clients' fees are concerned, the overall cost for an all-inclusive service becomes highly competitive compared against other wealth management services. 

If you would like more information, why not arrange a free consultation with a Financial Adviser today? Our expert chartered financial advisers who would be happy to help.

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Please note: Past performance is no guarantee of future returns. The value of investments and the income from them can fall as well as rise, you may not get back what you originally invested. Tax and estate planning is not regulated by the Financial Conduct Authority.