Discretionary Fund Management

As a group, Blacktower has more than thirty years’ experience of providing financial advice and wealth management services to a select group of savers and investors in the UK. Furthermore, our international arm works to serve the needs of expats or other parties with complicated cross border financial and tax issues.

As part of our offering to existing clients, Blacktower UK provides a comprehensive and expert-led DFM (Discretionary Fund Management) service. Although not a DFM itself, Blacktower UK has long been a champion of the benefits of the DFM model has access to a select number of DFMs, including Quilter Cheviot.

The benefits of a discretionary fund manager

There are many benefits of using a discretionary fund manager. Firstly, a DFM lifts the time and worry burdens by ensuring each portfolio is expertly managed by a third party who brings expertise, experience and discretion to the process. Investing decisions are taken only after full consideration of all the relevant factors, including client goals, DFM research, and general and specific market conditions.

A DFM can help clients weather the storms inherent in times of market volatility and can help take advantage of emerging markets and opportunities at the earliest possible stages in an investment’s lifetime.

Furthermore, Blacktower UK’s clients have the ease and reassurance of a continual point of contact for their DFM so that they can remain connected to the progress of their portfolio and its place within the context of their wider financial goals.

The Blacktower UK DFM offering

As part the DFM service Blacktower UK provides for its clients, it acts as a trade desk to provide assistance in the pursuit of long-term financial goals as well as with short-term needs as and when they arise. Clients of Blacktower UK’s DFM service include those who are the representative of a trust or a corporation as well as those who are managing a SIPP or QROPS.

Personalised Portfolios

A top-down DFM service gives clients the ability personalise a portfolio so that it aligns with their character and investment goals.

Portfolios can be based on a balanced, wealth-preservation approach or on a more aggressive, growth-focused investment strategy. Depending on their needs, Blacktower UK offers its clients the following types of portfolio:

Balanced

• Top down investment strategy designed to identify key sectors, which offer stability and opportunity for growth in the current market place
• Provides diversity across multiple sectors using individual stocks and ETFs
• Individual selected companies have an established business model, strong balance sheets and low debt obligations
• Most companies allocated are household names
• A conservative covered call strategy can be used to help increase performance

Growth

• Targets individual companies experiencing growth in earnings
• Companies selected have little to no dividend, therefore focusing assets on further development
• Higher amount of volatility as the companies are in a growth phases vs developed companies in a balanced portfolio
• Companies allocated are a mix of known large, mid and small cap
• A more flexible strategy can include calls and puts for position entries

Aggressive

• Seeks high return from investing in companies with high growth potential
• By design, the portfolio experiences the highest amount of volatility when compared to a balanced or growth strategy
• Specific sectors can be targeted due to a recent loss in value if identified as a short-term market reaction
• Client typically has a much longer time horizon to invest for – 10 years
• Buying and selling of Calls and Puts can be sourced to increase the potential for capturing additional capital gains

Blacktower UK wealth management services

Blacktower UK has relationships with around half a dozen Discretionary Fund Managers, enabling our clients to receive a bespoke DFM service as part of our broader wealth management and inheritance tax planning service. Existing clients of Blacktower UK can contact us today for a review or update of their finances. Those with significant assets, who are looking for holistic management of their pre- and post- retirement planning needs, should contact us for a consultation.