Rebecca Stein, Head of Tailored Discretionary, Charles Stanley, tells us about the group’s Tailored Discretionary Managed service and why it’s ideally placed to deliver for financial advisers and meet their clients’ needs.
Charles Stanley’s Tailored Discretionary Managed service was launched for the intermediary market, to bridge the gap between fully bespoke investment management and model portfolio solutions (MPS). The Tailored Discretionary service provides a unique blend of personalisation and a centralised investment strategy, offering a cost-effective option for clients without complex investment requirements.
Suiting different client scenarios
The Tailored Discretionary Service can handle certain key client requirements such as decumulation, CGT harvesting, and ISA utilisation. The key advantage is the provision of direct access to a portfolio manager for the adviser to discuss portfolio strategies and investment related queries. This approach provides a personalised investment experience, whilst maintaining the consistency and reliability of a centralised investment model.
The Tailored portfolio managers collaborate with financial advisers to help achieve their clients’ financial goals. This partnership is pivotal in understanding the client’s cash flow needs, as determined by the adviser. With this insight, the service can effectively manage the decumulation and cash withdrawal process.
Focused on outcomes
We focus on delivering outcome-oriented risk-adjusted returns. Our portfolio management team works diligently not only to maximise returns but to do so in a way that is commensurate with the level of risk which clients are comfortable taking. Every portfolio is benchmarked against long-term inflation targets, after all, it is about delivering real returns for clients which are aligned well with the adviser’s financial advice.
Investment strategy
We believe around 80% of portfolio returns will come from asset allocation, for this reason we create our strategic asset allocation in house, a process that we own from start to finish. This sets out our longer-term views on optimal asset allocation. This is supported by our Investment Strategy Forum which meets on a regular basis, seeking to quantify the medium-term factors and generate a strategic view. Monthly asset allocation meetings are then held to form our Dynamic Asset Allocation, tilting away from our longer-term view to take advantage of dislocations in the fair value of markets.
Our approach is globally unconstrained which means that we are not bound by regional limitations or confined to specific asset classes. The Tailored portfolio managers are responsible for implementing these themes and asset class calls within the portfolios. Utilising the resources of our dedicated in-house research analysts allows us to construct portfolios using direct equities and bonds, in addition we use investment trusts and active and passive collectives where appropriate.
Remaining responsive to change
In a world where financial markets can change rapidly, managing investments effectively requires the ability to make timely adjustments to portfolios. The Tailored portfolios do not have any fixed rebalancing schedules which means they remain flexible and responsive to changing market conditions. This adaptability ensures that investments are agile, aligning with the dynamic nature of the financial markets.
Our dedication to our centralised investment approach means that clients with specific investment needs such as exposure to, or avoidance of, a particular investment may be better aligned to Charles Stanley’s truly bespoke investment service.
By streamlining the investment process and offering a well-structured, yet tailored, approach, the service provides clients with a cost-effective middle ground between MPS and truly high-touch bespoke investment solutions.
Find out more about Charles Stanley.
About Rebecca Stein
Rebecca is Head of Tailored Discretionary Management at Charles Stanley she has over a decade of expertise in the financial services industry and is a Chartered Fellow of the CISI holding a level 7 Chartered Wealth Manager Qualification.
For more information on how Charles Stanley can partner with your business, contact Head of Strategic Partnerships, Tom Hawkins on 020 3627 3990, or email tom.hawkins@charles-stanley.co.uk.
The value of investments, and the income derived from them, can fall as well as rise. Investors may get back less than invested. Past performance is not a reliable guide to future returns. Charles Stanley & Co. Limited is authorised and regulated by the Financial Conduct Authority.
