We hoped that increasing regulation in the offshore market would mean expats and their families would start receiving the same level of service, and sound, independent, professional financial advice as they would in their home country.
However, recently there is a growing trend of businesses buying IFA companies, especially in under-regulated South East Asia markets, and using the underlying clients’ monies as a means of raising cheap capital, which is then invested in the parent business.
Is your hard earned investment or pension at risk?
Be wary of placing your hard earned investment or pension in unregulated investments such as infrastructure or structured notes
Alternative, esoteric investments which promise an attractive return, sometimes as much as 10% a year, not only under-perform markets but pose a significant risk to a your entire investment or pension. Infrastructure investments seem to be the current flavour of the month, but are they in a client’s best interest?
These alternative investments are often unregulated, meaning a client has no recourse should and when they fail. Any ‘investor protection’ provided by an offshore based insurance company, only applies if that company itself fails, and not if any of the underlying investments within your portfolio fail. As such, you take all the risk in your investment or pension, whilst your ‘adviser’ gets all the return with an upfront (and often hidden) commission for recommending the investment.
Within the region, there are sadly are growing number of expats who have lost their entire investment or pension to alternative investments such as gold, wine, art, property (including UK land banking, UK commercial property such as the Glanmore Fund, or the dubious Australian LM Property Fund), legal financing such as the Axiom Legal Financing Fund, infrastructure investments, or even Canadian chicken farms via the Canadian Integrated Agriculture Fund.
Most, if not all of these alternative investments are unable to raise capital via traditional methods, such as a bank loan due to the necessary due diligence, and often unviable underlying business.
Instead trust a UK regulated discretionary manager who will manage your money along with UK blue chip companies’ investments
At Intelligent Investments, we have always believed by putting our clients’ interest first, and providing the same advice that we ourselves would take in their situation, our business will continue to grow.
Many investors, let alone the ‘advisers’ who recommend alternative, esoteric investments or structured notes, fully understand the risks. At Intelligent Investments we leverage the expertise and knowledge of the world’s leading investment managers, and use UK regulated discretionary fund managers to ensure your investment or pension meets your goals. These discretionary fund managers also manage investments and pensions for institutions such as Anglo American, BP, Coca Cola, HP, Mcdonalds, Sainsbury’s, Samsung Electronic, or Shell.
Wouldn’t you prefer to have your investment or pension professionally managed by a UK regulated discretionary fund manager, who has the time and resources to ensure your portfolio is line with your expectations and in your best interest, as oppose to which fund pays your ‘adviser’ the highest commission, or having your investment or pension used to profit your ‘adviser’s’ parent business.
Why should you take all the risk whilst your ‘adviser’ gets all the return?
See the difference with Intelligent Investments. For a confidential, no obligation review of your existing investment or pension, including how you can reduce your current charges and maximise your growth, speak to our team today.