The Safe Custody of Your Assets – Is Bigger Better?

When clients are choosing the financial advisory firm with whom they wish to form a relationship, they are understandably keen to interrogate the credentials of the people that will be looking after their wealth.

At this point, it is easy to fall prey to ‘The Big Brand Myth’; commonplace misconceptions of whether clients might be better served by working with a ‘household name’. We discuss the main ones below:

Security

Will my money be ‘safer’ when it is being advised on or held by a big company?

You may think that a specialist adviser may somehow be less ‘credit worthy’ than a large corporate institution. Consequently, this causes you to worry that if the specialist firm encounters financial problems, your personal wealth may be at risk.

Manse Capital will never take direct possession of your money or assets. Our relationship with you is advisory – we do not seek authority to trade on your behalf. Your money always remains safe in a custodial account in your name, operated and overseen by a professional custodial firm.

Furthermore, we do not make any changes to your investment portfolio without first obtaining your agreement as part of our ongoing dialogue and advisory relationship. You never have any surprises about what investments you own and how you came to own them.

The custodial firms that we currently employ are Transact and Novia, and they are both well-established specialists in this space in the UK.

It is also worth noting that as a client of Manse Capital, you are protected to the full extent of existing UK financial services regulation, just as you would be with any ‘big brand’ firm.

Performance

By far the most significant risk to your money relates to the performance of your investments. The second misconception common amongst investors is that getting advice from a big company or a household name will somehow guarantee investment results. This is simply not the case. Investment results are determined by investment philosophy, portfolio structure, and the associated costs. And no large company will guarantee your investment results – unless the expected return is commensurately low (for example a fixed rate short term bank deposit account).

In addition, larger ‘big brand’ firms will often direct you to their ‘in-house’ investment products which may involve inefficient active management strategies and very high levels of internal fees and charges. Manse Capital has no such conflicts of interest. We work with you to secure you a sound, impartial and evidence based investment experience.

Service

Large companies often try to project an image of consistency and ‘brand standard’ to the public at large. The basic idea is to instill confidence in you that the large institution will somehow provide a consistent level of individual attention and care, regardless of which member of the department is ‘assigned’ to your case. Unfortunately the opposite is often true, with perennial high staff turnover in departments resulting in a different person picking up your file from one year to the next.

Manse Capital operates in a close-knit environment, where your affairs are truly understood by a number of key people in the team; this, we believe, is the best way to offer you true continuity of service.