Bespoke investment advice service
Our client's funds can be invested in two ways, either by the client as a self-investor on an execution-only basis or by Square Mile Asset Management on a bespoke ongoing advisory basis.
Our minimum portfolio size for our bespoke ongoing advisory service is £500,000.
The ongoing advisory service we offer is an ‘actively managed’ service. As this is an ‘advisory service’ and not a ‘discretionary service’, we can’t make any changes to the investment portfolio without our client’s knowledge and permission.
The investment portfolio is constructed from a sufficiently diversified range of the leading actively managed investment funds and is based upon the amount of ‘risk’ a client prepared to accept.
The service is 100% performance fee-based, and the fee basis is 20% of any investment return over a defined benchmark that is appropriate to the portfolio.
The actual return is compared with the benchmark on a defined date each year, on a 12-month rolling basis.
The investment portfolio of £500,000 has grown by £40,000 (8%) before charges during the relevant 12-month period. The relevant benchmark return would have been £25,000 (5%). The performance fee would be £3,000 (£40,000 - £25,000 = £15,000 x 20%).
The investment portfolio of £500,000 has grown by less than the relevant benchmark returns of 5%. The fee would be £0.
By using a 100% performance fee basis, we firmly believe there is a much stronger alignment of service and performance between our clients and us.
Our research indicates that a large proportion of the wealth management/IFA industry charges a flat 1% per annum for ongoing investment advice, irrespective of service and the relative performance of the client’s portfolio, which we think is flawed.
For Square Mile Asset Management to earn a 1% per annum investment advice fee, your investment portfolio would need to have outperformed its benchmark by 5% per annum.
Square Mile Asset Management can provide a full review of your existing investments and performance. If you have investable assets of £500,000 or more, please contact us for further information on our bespoke investment advice service and how it can work better for you and your wealth.
We offer a flexible and alternative approach to wealth management.