Our Wealth Management Propositions


Ferguson Oliver Wealth Management offers three different on-going service propositions where charges will vary according to your requirements and our time and responsibilities.

OPTION 1

  • No inclusive service will be provided. As and when help or advice is required, we will advise of the cost based on our hourly rate. We will advise you of the cost prior to any work being undertaken.
  • There is no annual review meeting or responsibility for Ferguson Oliver Wealth Management to review the funds under management.

OPTION 2

  • An inclusive service which includes an annual review and where funds are monitored and reviewed from time to time as and when the need arises.
  • Essentially the portfolio is not actively managed with regards to strategic or tactical changes but reviewed from time to time and a long term view taken on the initial holdings made.
  • The charge depends on the value of the funds under management and upon a client’s requirements and needs.

OPTION 3

  • The portfolio is actively reviewed on a quarterly basis with recommendations made on switches. There will also be quarterly reporting on values and returns combined with online access available for you.
  • This service also offers an annual review from me and half-yearly seminars from the fund manager that you can attend should you wish. The charge is normally capped at no more than 1% (excluding VAT) of the funds under management. I believe that the benefit provided by myself in partnership with the service proposition adds more than sufficient additional value to justify the additional cost from a value exercise compared with Option 2.
  • There are no fees charged on any switch of investments made or recommendations to alter or change anything.

We utilise the services of Beaufort Investment Managers for option 2 & 3 with option 3 marketed as the equip series of portfolios.

Beaufort Investment Management (BIM) run what we feel to be a robust investment process known as the equip investment process, however it is considered more of an approach than a fixed process as it is being continually developed and refined. The team has a number of ‘rules’ for investing as well as his ‘process’ for looking at the individual funds.

The 7 rules for investing are:

1. Always insist on a margin of safety
2. This time is never different
3. Be patient and wait for the ‘fat pitch’ (waiting for the right opportunity)
4. Be contrarian
5. Risk is the permanent loss of capital, never a number
6. Be leery of leverage
7. Never invest in something you don’t understand.

These rules keep the investment process and more importantly the clients in the right assets at the right time and keep the investment team on the right tracks. They have kept BIM from investing in some asset classes at the wrong time and also from investing in things that were too good to be true. On top of this, the team uses its self-developed PRETTI process for researching the underlying funds, fund managers and fund groups:

P. Process - risk controls, buy/sell disciplines, ‘kicking of the tyres’
R. Returns - not ‘how much’ but ‘how did they get there’
E. Expenses - Ensuring that the charges are not inappropriate
T. Team - Analysts, senior management, operations staff
T. Talent - Is there a particular individual that drives the fund?
I. Ideology - investment philosophy, style, sector, market cap

Together this creates a ‘score’ for each fund researched and enables the team to ensure that the fund and fund manager exhibit high levels of consistency which is a key criterion for investing. The team look to blend individual funds together, within asset classes, to create something that is ‘more than the sum of its parts’ and use this to blend against other blended funds. Each constituent of a portfolio is pertinent for that level of risk, i.e. the UK equity funds in Portfolio 05 will be a different split and weighting to the UK equity constituents in Portfolio 10.

The blending is a key factor in the process and consistency is key, as the team needs to know that the managers will continue to exhibit the traits that they were chosen for in the first place to ensure the best diversification benefits and low correlation results. The investment team looks at funds on a weekly basis (each Monday morning) and in turn the portfolios, looking at sector and benchmark comparisons to create a picture of how the quarter is turning out and any potential warning signals are therefore picked up early. In addition to the above, the team meets regularly with fund houses, speaking with individual managers and analysts.

The investment committee meet on a quarterly basis. The team will present their findings to this committee giving details on the managers seen and any recommendations they would like to make. Any recommendations are discussed and agreed. The research philosophy involves a filtration process taking account of factors such as relative historic performance, investment style of the management team in situ, correlation of the underlying assets, number of stock holdings and the relative volatility of the funds under consideration. Diversification of the overall portfolio is important to assist in managing the overall risks related to the funds invested and each individual fund may hold up to around 40-100 individual stocks or fixed interest securities.

EQUIP OBJECTIVES

  • Ensure your portfolio reflects your current risk/reward profile.
  • Have a system in place which will monitor your investments, keeping you informed of the returns you are obtaining and the balance of your portfolio in comparison to your risk/reward profile.
  • Maximise your investments within your risk/reward profile through an effective combination of fairly charged policies and access to a wide range of suitable funds.
  • Ensure you have full awareness of the investment opportunities available to you.

EQUIP BENEFITS

By following the strategy outlined below, you will:

  • Have access to a wide range of funds & fund management companies allowing you to benefit from the diverse range of styles and specialities available.
  • Structure your portfolio to match your current risk/reward profile.
  • Have greater long term flexibility to maintain your investments in line with your risk/reward profile.
  • Keep you informed of current market trends and make fund recommendations each quarter to ensure your fund is rebalanced in line with your risk profile and reflects the current market.

For more information on Why you should consider investing in an equip portfolio please download our Why Equip brochure below.

You can also download the most recent quarterly review documents for the Old Mutual Wealth, Standard Life Investments and other platforms below


And finally please feel free to visit the Beaufort Investment Management website: http://beaufortinvestment.co.uk/client/

26 Clerk Street, Brechin, Angus, Scotland, DD9 6AY


Ferguson Oliver Wealth Management is Authorised and Regulated by the Financial Conduct Authority. Financial Services Register Number 616203.
Registered in Scotland, Company Number SC116960. Registered Office address: 26 Clerk Street, Brechin, Angus, Scotland, DD9 6AY. Trading address: Same as registed. Telephone: 01356 625285
The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK.
© 2017 Ferguson Oliver Wealth Management
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