A Relationship Framework Prioritizing Security and Accessibility
Prior to establishing our company in 2008, we did some soul searching as to whether we should operate as a fund or a full service asset management firm. After careful review of the ubiquity and potential intensity of risks facing our clients, we decided on the latter.
While we recognize the talents of the many outstanding fund managers and the importance of the fund industry globally, the potential dislocations caused by monetary and systemic events led us to opt for what we believe to be the most secure structure.
Ultimately, the custodial framework is a very important but often overlooked part of an individual’s investment architecture. Our approach is comprehensive so that assets might remain as secure and accessible as possible, even in the most turbulent of times.
Safe. Competitive. Efficient.
We do not provide custody. However, we have formal custodial arrangements with some of the safest and most respected banks in the world as well as being able to work with most custodians of our clients’ choice.
Custodians should offer preferential rates for trading and custody fees, and provide efficient and comprehensive execution of trades in multiple asset classes and exchanges globally.
We insist on a high level of transparency. We only work via segregated, individual accounts at custodians of our clients choice, who may typically provide clients with 24/7 online access, monthly statements and trading confirmations.
We do not invest in funds, preferring to invest directly in equities or fixed income instruments in regulated public markets. This minimizes layers of ownership between our clients and their assets and helps to control costs and optimize tax efficiency.
Our “no fund” preference, combined with a focus on leading quality, liquid assets help ensure that, to the extent possible, our clients’ capital is accessible to them at any time. This can be especially comforting in times of market stress when the liquidity and valuation of funds can be dependent on the action of other investors.
We have no “lock ups” or any other liquidity restrictions. Custodians may even provide credit card or checking facilities if required.
Leverage can lead to permanent capital losses as even some of the most reputable businessmen and fund managers have experienced.
We believe the most rational and appropriate approach for individuals and families seeking to perpetuate their wealth under even the most unusual circumstances is to minimize the leverage inherent within their entire investment architecture.
We prefer financially stable custodians with minimal exposure to volatile or risky ancillary businesses, try to focus on investments with strong balance sheets and avoid margin in our client accounts.