By: Mike Potts
As an investor, you are likely to ask one or more of these critical questions at some point in your life:
- Have I chosen the right investment?
- How do I know that my portfolio is in good hands?
- Does my financial advisor have an agenda that could affect the profitability and stability of my investment?
One, if not all of these questions will come up at some point on your journey to wealth. Bluntly speaking, these are times where you cannot afford to stick your head in the sand. At Carrick, we’ve become so conscious of doing right by our clients, that we have handpicked a committee that is dedicated to that end: the Carrick Investment Committee.
Why Have a Committee?
At Carrick we are approached by investment houses from across the globe. We are also approached by numerous investors wanting only the best outcomes for their portfolios. It seems only fitting that investment houses are put through a rigorous vetting process to separate the riff-raff from the real-deal.
In the past, many brokers were offering their clients investments with personal agendas in mind:
- Chosen investments were linked to companies these brokers had personal interests in
- These brokerages often chose investment portfolios that paid a higher trail commission and had higher fees involved
It is clear then how serious conflicts of interest were raised, causing mistrust in the investors concerned.
The Carrick Investment Committee
The Carrick Investment Committee was created for this very reason: to interrogate these investment houses and ensure that they meet the extremely high standards that we’ve set. This Committee is a Carrick initiative created to ensure the transparency of investment houses we consider for our clients.
There are currently six people on the investment committee, five of which are from Carrick Wealth, the other an external member. The Committee includes myself, Craig Featherby, Antony Palmer, Adrian Jossel, Mathew Marsden and Scott Campbell of Miton Optimal who has over 25 years of investment management experience.
What Does the Investment Committee Do?
The Investment Committee meets once a month for the purpose of doing thorough investment reviews. The committee approves a “white list” of investment options from which Carrick advisors can choose to propose to their clients. Advisors then have the ability to select appropriate strategies that fit their client risk profile.
How does an investment make it onto the “White List”?
- We look at new, potential investment portfolios
- We review our current list of investments and their performance
- We look at existing whitelisted investments, including their fees and whether they’re in line with their peer groups and competitors
Each month we’ll discuss (with input from Scott Campbell) if there are certain geographical locations or asset classes we want to avoid or include as a whole. Since the process is so rigorous, we are able to give our clients the well-researched information they need.
Essentially, what we do is an exercise in complete transparency for all concerned.
What Criteria Has the Committee Set for Investment Houses?
While our criteria are not cast in stone, we believe that this vetting and interrogation process is vital to our claim to have integrity in the way we do business. It’s 100% for the benefit of the client:
- We make sure that we manage any potential conflicts of interest
- We debate the merits of their pedigree, performance and reputation in the market.
- We look at how long they’ve been in business
- We consider the value of their assets
- Fees, total expense rations, etc. are considered
- We review their past performances
- We even discuss whether we agree with their sentiment, philosophy and mandate
With the current financial landscape, what is considered good advice right now?
Typically, most of our investors are medium to long term investors. Very few are aggressive in their appetites to risk. As a committee, and therefore as a business, we generally select medium to long term investments with a cautious to moderate risk at most.
Obviously the client will always make the final call, so if they want a particular investment they can have it. But we’d certainly go through a comprehensive risk profile to ensure that we manage their expectations.
Recommendations from the Committee
If your broker’s advice is sound, don’t change strategy when the markets make a correction. One of the oldest sayings in the world of investments is “it’s time in the market, not timing the market”. These are our recommendations for safe, profitable investment portfolios.
At Carrick we bring the biggest and best investment houses in the world to the table to manage your portfolios, giving you piece of mind that your money is being managed by the best of breed within the industry.
Tel: 21 201 1000