By Charles Stanley Oxford
An Investment Manager aims to maximise returns for individuals and professionals by appropriately investing their wealth to meet their long-term objectives. They have a deep understanding of financial markets and investment strategies and use their expertise to make investment decisions on your behalf. They design and manage diversified portfolios which are typically made up of bonds, equities, real estate, and other financial instruments.
Five Investment Managers working at Charles Stanley’s Oxford office share what they love about their job, and how they help clients meet their financial goals.
By Giles McKean, Investment Manager
Charles Stanley is in the absolute sweet spot for investment management. We are large enough to have all the research teams, support, checking and monitoring that we need – but not so large that investment decisions are made by a distant committee in a ‘one-size-fits-all’ way.
This means Charles Stanley’s Investment Managers have the freedom to make their own decisions in areas where we have the understanding and expertise to add value for clients – but we can also use our research teams’ selections in areas where they have a greater level of expertise and have undertaken a rigorous analysis.”
“When we take on a new client, we ask a range of questions to get a deeper understanding of their financial situation. We discuss a client’s willingness to take on risk, how much risk they can afford to take, and the amount of risk that they need to take to meet their goals.
To generate long-term returns over and above inflation, the 'real return', we buy assets that we consider to have the greatest potential for positive returns. However, such assets inherently carry the risk of potential capital loss. This is particularly true of the equity market. Over the long run, the equity market has delivered higher returns than other asset classes; however, over shorter time horizons, stocks are generally more volatile and can deliver negative returns. It is therefore important that we get your risk profile correct from the outset, and that we are aware of the timings of future cash requirements so that we can plan to take money out of the markets when they are performing well.”
“Whilst we tailor portfolios to reflect client’s situations, many clients also feel it’s important their investments align with their moral values. This can be done via negative screening and/or positive screening. As part of this we talk about the environmental, social and governance (ESG) credentials of their portfolios.
ESG integration looks at “how” a company goes about its business, rather than simply considering “what” it does. Understanding your views and preferences is a key part of building your portfolio. The recent growth in this sector has provided more options for investors but we also want to ensure each investment is achieving a specified goal, rather than just having labelled themselves ESG.
Whilst having better ESG credentials does not necessarily mean an investment will generate better returns, investors can take comfort from knowing that companies are being asked how they conduct their business, both today and into the future.
At Charles Stanley, we have always considered any non-financial factors that could affect a company’s prospects. We’ll take into consideration a wide range of financial and non-financial factors to create a portfolio which delivers against your long-term objectives, while good relationships, knowledge and understanding are essential foundations.”
“While managing investments on an ongoing basis and building long term relationships with our clients are our core activities, it is also important we also consider our client’s financial legacy and intergenerational wealth management.
This can start very early on, whether we include a Junior Individual Savings Account (JISA), an ISA, Pension or Trust investment portfolio in the mix. These are some of the ways we can help families use their collective wealth to support each other during their lifetime or to help future generations.
When appropriate we can also look to involve the younger generation in investment conversations, thus preparing them for future roles in managing family assets. This can be especially important for families with businesses or large estates.
In the meantime, such plans can get more complicated and need specialised advice and we are happy to work alongside financial planners to ensure wealth is passed on in a sustainable and tax-efficient manner.”
“We use research to help us make informed decisions that align with each client’s investment objectives and risk tolerance. We have a team of research analysts who provide economic and company-specific research which assists in our decision making. We also buy third party investment research to gain additional insights and perspectives.
We are extremely fortunate to work in Oxfordshire with some of the leading Biotech and IT companies. We’re continuing to explore the demographic, socioeconomic and technological tailwinds that the biotech and healthcare sector enjoys. Through predominantly collective investments, we can ensure our clients can benefit from these growth sectors while managing risk.”
If you would like to discuss any of the themes in this article, or to find out how Charles Stanley can manage an investment portfolio on your behalf, please contact a member of the Oxford team.
01865 987 485
oxfordbranch@charles-stanley.co.uk
The value of investments, and any income derived from them, can fall as well as rise. Investors may get back less than originally invested. Charles Stanley is not a tax adviser. Information contained in this article is based on our understanding of current HMRC legislation. Tax reliefs are those currently applying and the levels and bases of taxation can change. Tax treatment depends on the individual circumstances of each person or entity and may be subject to change in the future. If you are in any doubt, you should seek professional tax advice. Charles Stanley & Co. Limited is authorised and regulated by the Financial Conduct Authority.
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