IFA recommendations London

Albermarle

I'm just worried that if I DIY it could lead to expensive errors

Like Old Music Guy said , if you have some basic investing knowledge and stick to simple average risk mainstream funds , then it is unlikely you will make any critical investing errors.
However if you have very large funds/high salary /divorce/children issues/ family trusts/potential IHT /LTA issues etc then some professional help can become more necessary .

xylophone

you have very large funds/

In previous posts the OP seemed to be suggesting a seven figure inheritance and wanting to invest up to £750,000.

He could try

https://adviserbook.co.uk and tick "confirmed independent" and such other specialisms as are required - he will have a very wide choice if he is searching the London area.

In South London, he might look for IFAs based in Dulwich, Blackheath or Chislehurst as these are areas with a lot of "high net worth" residents?

johnadams7

That was the very rough value when I last touched base in August. I'm now thinking i'd rather invest 250 x 2 and keep the rest split between bank. Consider my options, but also as I get to know the IFA, i'd feel more confident topping up.

I spoke to two IFA's today, both said they use active funds pretty much exclusively.
Fees for number one - were 3% initial, 1% thereafter.
Number 2, didn't mention an initial cost, but he works on the basis of performance - if it beats by more than 1% fees are 1%. If more than 5% fees are 2%. I.e to outperform.

Part of me is inclined to leave it where it is, fees are more expensive, performance is probably below average, but over the years it is still making money.

johnadams7

No-one really stuck out, on this forum we hear a lot about passive investing, lifestrategy, hsbc global etc, but no IFA has really mentioned it.

My last question to the IFA who manages based on performance how much money is under his control - for lack of a better word. 30 million was what he said.

I was thinking along the lines of 10% UK equity, 10% global equity, 10% emerging markets, 5-10% GILT/ fixed interest. The rest in Vanguard lifestrategy 80/20, and the HSBC offering.

OldMusicGuy

johnadams7 wrote: »

No-one really stuck out, on this forum we hear a lot about passive investing, lifestrategy, hsbc global etc, but no IFA has really mentioned it.

My last question to the IFA who manages based on performance how much money is under his control - for lack of a better word. 30 million was what he said.

I was thinking along the lines of 10% UK equity, 10% global equity, 10% emerging markets, 5-10% GILT/ fixed interest. The rest in Vanguard lifestrategy 80/20, and the HSBC offering.

IFAs would find it hard to justify their fees if they just said "stick it all in VLS xyz". Many think they have some kind of edge/special sauce. It's up to you to decide whether you believe them or not.

Why would you mix some single sector funds with multi-asset funds (if that's what you are planning on doing)? That does seem a very odd choice. It would really help you if you could read those books I mentioned if you haven't already.

bostonerimus

You should only DIY if you have absorbed the simple basics of asset allocation and portfolio management ie buy a low cost multi-asset fund from someone like Vanguard and then do nothing...other than keep adding to it.

If you have some complex planning and tax situation an IFA can be useful, but most people don’t need them for portfolio construction and management.

SonOf

IFAs would find it hard to justify their fees if they just said "stick it all in VLS xyz".

Not at all. About a third of the portfolios we have ongoing servicing on are in multi-asset funds. We wouldnt put a £700k in one but IFAs are more than comfortable using VLS, HSBC, L&GMI, Architas etc.

The individual is paying the adviser to give best advice. Some people are more suited to multi-asset fund and just cant understand a bespoke portfolio approach. The IFA is there to give what is best to the individual.

Why would you mix some single sector funds with multi-asset funds (if that's what you are planning on doing)?

Some people do a core and satellite approach. Its not a method I particularly like and would not use personally. However, it is a valid method. Although not in the way the OP has listed it which is just a random selection with a hit and hope.

I spoke to two IFA's today, both said they use active funds pretty much exclusively.

The most common method used by IFAs that work on an advisory basis rather than a discretionary basis is hybrid or blended. i.e. they use active and passives. It's mainly with discretionary advisers or those that utilise DFMs that go fully active. That type of adviser tends to have wealth management in their name and it's generally worth avoiding them.

johnadams7

SonOf wrote: »

Not at all. About a third of the portfolios we have ongoing servicing on are in multi-asset funds. We wouldnt put a £700k in one but IFAs are more than comfortable using VLS, HSBC, L&GMI, Architas etc.

The individual is paying the adviser to give best advice. Some people are more suited to multi-asset fund and just cant understand a bespoke portfolio approach. The IFA is there to give what is best to the individual.




Some people do a core and satellite approach. Its not a method I particularly like and would not use personally. However, it is a valid method. Although not in the way the OP has listed it which is just a random selection with a hit and hope.



The most common method used by IFAs that work on an advisory basis rather than a discretionary basis is hybrid or blended. i.e. they use active and passives. It's mainly with discretionary advisers or those that utilise DFMs that go fully active. That type of adviser tends to have wealth management in their name and it's generally worth avoiding them.

So how do I find the ones using VLS HSBC etc, and neither had wealth management in their name. Would I be too far to travel to you ? Potentially rather travel a further distance where someone is considering costs, value for money whats best for me etc....

OldMusicGuy

SonOf wrote: »

Not at all. About a third of the portfolios we have ongoing servicing on are in multi-asset funds. We wouldnt put a £700k in one but IFAs are more than comfortable using VLS, HSBC, L&GMI, Architas etc.

Do you mean you would not put a 700K portfolio all in multi-asset funds or just one multi-asset fund? The former makes sense to me, I can understand the latter might not be ideal.

Or do you mean that if an individual has 700K they are more a target for the "bespoke" portfolio because that way they feel they are getting value for money for the very large fees you will be getting every year?

SonOf

So how do I find the ones using VLS HSBC etc

All of them can use them. You just need to instruct them. No different to giving an IFA an instruction that you are an ethical investor or have religious beliefs that restrict your investing selection or that you want 100% passive.

If they refuse then they are not proper IFAs. However, £700k in a multi-asset fund is not ideal.

and neither had wealth management in their name

It will usually be a tag line on their site or letterhead.

Do you mean you would not put a 700K portfolio all in multi-asset funds or just one multi-asset fund? The former makes sense to me, I can understand the latter might not be ideal.

I would aim to use a portfolio of single sector funds on that amount.

Or do you mean that if an individual has 700K they are more a target for the "bespoke" portfolio because that way they feel they are getting value for money for the very large fees you will be getting every year?

The fees would be no different if multi-asset or single sector. However, the fund fees would be lower.