Empowering clients to be better stewards of their assets.
Stewardship: The careful and responsible management of something entrusted to one’s care.
Investment professionals are called to be stewards of your assets. They need a supportive ecosystem within which they can work for your best interests. The system can either empower them to perform their role as stewards or leave them feeling conflicted as sometimes sub-optimal solutions are delivered.
In the traditional wealth management model, significant conflicts of interest result in a less than ideal outcome both for investors and advisors.
Our conviction is that the key lies in the Independent Wealth Manager Model where investors and professionals interests are aligned.
Traditional Model presents various conflicts of interest
- ‘Negative pressure’ – Bank revenue vs interests of clients.
- Demands of large listed institutions – quarterly reporting, performance targets etc.
- Banks as the ultimate paymaster.
Consequences
- Excessive risk/leverage taken.
- Sale of products based on ‘margins/revenue’ as opposed to
investment merit. - Increased controls resulting in more time taken for
‘non-client/non-investments’ activities
(Diminished productivity) - Investment professional burnt out – turnover.
- Bankers Musical-chairs.
Re-alignment of interests
- Client as paymaster – significantly alters behavior of investment professionals.
- Independent wealth managers are entrepreneurs, running their own businesses for the long term.
Alignment of interests is key
- Ability to look across platforms and products available
in the industry. - Best in breed investment and wealth management
opportunities (Investment merit, costs). - Ability to leverage and synthesize views across various
private banks and 3rd party research and fund managers
for our clients benefit.