For the fourth year running, we are thrilled to have been included in the FT Private Client Wealth Management survey that profiled 38 of the UK’s leading wealth managers. The survey included commentary about the current investment climate, changes in the wealth management industry and charges.
More detailed analysis was provided by way of performance figures over 1, 3 and 5 years. Interestingly, only 25 of the 38 firms had their results independently verified by ARC (Asset Risk Consultants) of which Equilibrium was one. Another point of interest is that there were 46 firms represented last year and 14 firms who were featured in 2014 have decided not to be included in this survey although 6 other firms have participated.
We are delighted with our 3 year performance ranking (for our balanced portfolio) of 1st out of all the firms whose performance was verified by ARC (we were second out of the total) and 10th over 1 and 5 years; however, the survey shows that our results were achieved by taking far less risk than the average balanced portfolio. The average equity holding was 48% compared to our 35% and two-thirds of firms positioned higher than Equilibrium had equity holdings of 50% or more.
Our results continue to be achieved through a combination of a diversified and sensible asset allocation and good fund selection rather than being driven purely by a rising stock-market.
Last year, very few firms had a property holding although it seems that most subsequently jumped on the band-wagon, just as we at Equilibrium have decided that it’s time to reduce our weighting in the sector. However, at the time that the survey data was collected, we continued to hold the highest proportion at 28% compared to an average holding of 6% which has served us in good stead over the last 12-18 months.
It’s great to have our performance endorsed independently and to be in a position to compete with some of the largest firms in the UK. However "investing" is just one aspect of our overall wealth offering, it is when it is combined with a robust financial plan, comprehensive tax planning and great service that the best overall results can be achieved.