More than 30 years in the finance industry
Having had a career of more than 30 years in the finance industry, the client in this case study has very complicated financial affairs. The main reasons for the complexity are:
Their affairs were spread across many institutions making it difficult to have control of information and document management.
The client had moved to London for work many years ago as a non-domiciled resident having already built up significant assets when working in the US and Europe. They are now deemed domiciled in the UK. This has added layers of complexity through both the number of accounts needed to segregate assets and the lack of clarity around the UK treatment of various alternative investments.
As an experienced investor, the client’s portfolio contains a large number of sophisticated investments which require active monitoring.
The client’s family wealth is held over a number of structures including an excluded property trust and investment companies.The intricacy of their tax affairs coupled with the inability to gain a clear overall picture of the estate meant that our client did not have the clarity or confidence to make empowered decisions in terms of investment opportunities and planning for the future.
As with all clients, the first thing we did was to familiarise ourselves with their situation and his objectives. This enabled us to provide a bespoke consolidated report broken down by entity, location and tax status. The report helped the client visualise his affairs from a top down view, but also meant that we could work with his tax and legal advisers and provide them with a full picture of the estate. This was a major step in drawing together a financial plan that addressed the estate as a whole and how different assets held by the client and his family interacted with each other to achieve the outcome required.
As we began to define the client’s objectives, the work began to make their finances easier to manage. As examples , we engaged a new lawyer to draft their Will which hadn’t been refreshed for many years, conducted detailed cash flow analysis to understand liquidity and clean capital requirements, consolidated banking accounts where possible, arranged debt facilities against assets held with banks to provide liquidity where they were locked into specific investments, and consolidated their pensions across various employers.
As the client regained control of his financial affairs, he became better positioned to start focusing on investment decision making. Working with the Artorius investment team, we were able to implement a strategic asset allocation for the whole estate.
This client is also interested to hear about any unique and opportunistic investments ideas that come from the Artorius network, particularly in the private equity space. As part of our investment solution, we have been able to introduce direct private equity deals, as well as recommend a panel of funds in the
Alternatives space. By working with this client, we have been able to turn frustration and complexity into clarity, empowering the client to make the important decisions for himself and his family.