Investment Services And Support For Professional Trusties
With over 25 years’ experience managing trust portfolios, we clearly understand the role and fiduciary responsibilities of Trustees
A trust may have various interested parties, be they professional advisers, settlors, protectors or beneficiaries. We are happy to engage and work with these groups in a way that recognises and reinforces the primacy of the Trustee. In every aspect, we are guided by the Trustee and seek to be the partner they are comfortable turning to on any investment matter.
At the outset, we seek to establish a clear understanding of the trust investment requirements. This informs a detailed set of investment guidelines, capturing an appropriate balance between risk and opportunity. We appreciate how important it is to demonstrate adherence to mandate parameters and restrictions when delivering return objectives. Communication and transparency are a key element of the long term relationships we enjoy with our Trustee clients.
As investors, our primary purpose is to preserve and grow the real (inflation-adjusted) value of a trust’s capital. Although we invest in growth opportunities across global markets, when building portfolios we are conscious that limiting downside can be a key driver of long term returns.
Over the market cycle, we feel that it is the return, over and above inflation, that signals success. Whilst volatility and downside are valid measures of risk, we consider the possibility of permanent capital loss a more important yardstick.
We are active investors and we ask for the latitude to reflect our investment convictions in trust portfolios. We do not manage with reference to any particular asset class or index. As a result, we do not feel compelled to own an investment simply because it is an index constituent.
With over half our assets under management held in trust, we are well versed in the management of portfolios that have restrictions or specific tax requirements. We have dedicated systems and procedures to ensure that guidelines are seamlessly incorporated into the management process. As part of our service, our fund managers have access to in-house tax professionals to help ensure that management complies with any tax imperatives.
In an increasingly complex investment world, we focus on independent research and quantitative data, tuning out a lot of the industry noise. To complement our investment process, we retain an Independent Advisory Committee. Convened every month and populated by a variety of investment specialists, the gathering provides a valuable forum to challenge and refine the house views.
It is our experience that good communication is a vital element when managing trust portfolios and we are guided by the trustees as to the frequency, format and content of portfolio reports. Senior investment executives are always available to review a portfolio or answer any investment questions.
OUTSOURCED INVESTMENT OFFICE
For more complex requirements, an outsourced investment office may be appropriate. We have assisted families and Trustees in creating their investment policy statement, agreeing and implementing a strategic asset allocation framework.
When formulating a suitable approach, we factor in the unique aspects of each situation. For example, investment office clients often have a dominant exposure, to a quoted or unquoted business, that needs to be offset or balanced by other mandate allocations.
Our investment office service can provide written due diligence reports; market scenario and drawdown modelling; FX, asset and factor risk analysis; sector, geographic, market capitalisation and stock concentration reports and qualitative screening via regular face-to-face meetings with external managers.
We work with client-defined global custodians or can introduce new arrangements with tried and tested 3rd party banks. Where necessary, we can coordinate the transition to a chosen custody solution, minimising cost and market risk.
On an on-going basis, we can organise and participate in investment committee meetings, supplying detailed analysis to inform debate and the decision-making forum.
Security of capital
The security of trust assets is paramount. Trust monies are always held in segregated accounts, with major global custodians, in the trust’s name. Funds are never co-mingled and are not exposed to the creditworthiness of Bentley Reid.
In all jurisdictions of operation, Bentley Reid entities are fully authorised and regulated by the relevant authorities including the HK SFC and the UK FCA. For additional detail please see the regulatory information page.
As further comfort, Bentley Reid carries significant professional indemnity insurance, underwritten at Lloyds of London. In this way, we seek to offer the security of a much larger business with the service and flexibility of a focused boutique.
At the outset of our relationship, we agree a clear schedule of fees with you. Being transparent, commercial and fair, we welcome open discussions to agree mutually acceptable fee levels.
For investment management we charge an ad valorem or percentage fee. The rate will reflect the portfolio value, the mandate complexity and your wider relationship with us. Should the Bentley Reid collective funds be relevant, please note that company executives are significant unit holders, investing alongside clients.
For banking, custody and transactions, fees are levied by our preferred global custodian banks. These are charged directly by the banks at preferential Bentley Reid rates.
If you feel we might be of service, we would be delighted to hear from you. We do not charge for initial meetings nor for the provision of draft proposals. Please contact us at our London or Hong Kong office.