IS IT TIME TO DIVERSIFY?
Uncertainty is driving many people to relook their wealth planning options, with a tendency towards diversification.
Avrio Wealth specializes in comprehensive financial planning and wealth management for high-networth individuals and families. “Our leading service is cross-border financial planning. The financial plan drives the solutions that we implement for our clients,” says Ann Marie Regal, CEO, Avrio Wealth.
Avrio is registered with both the Monetary Authority of Singapore and the Security and Exchange Commission in the U.S. “This allows us to work with a broader range of nationalities versus other wealth management firms in Singapore,” says Regal. Meanwhile, Regal is certified to advise on US financial planning matters by the Financial Planning Association of America, an Affiliate of Financial Planning Standards Board Ltd.
All owners hold the Certified Financial Planner designation and are permanent residents of Singapore. “We are also uniquely positioned to work with U.S. taxpayers, having two American owners who are both licensed in the US,” Regal adds.
As fiduciaries, Avrio manages wealth with transparent fee schedules. Clients know exactly what their fees are for integrated financial planning and wealth management. (It’s important to take note that there are wealth managers in Singapore who aren’t transparent so fees can be upwards of 3 per cent.)
With sustained uncertainty in all fronts, wealth management is getting the attention it deserves. We asked Regal to speak about wealth planning and the impact of the pandemic.
Have you observed what could be a massive and deep change in people’s attitude towards wealth accumulation and preservation because of the pandemic?
We have observed changes in people’s attitude. During the initial months of the pandemic, clients asked to review their financial plans with an emphasis on estate planning, insurance coverage, and portfolio rebalancing to align with changing circumstances.
Since then, the focus has shifted as client’s know fees have a direct impact on wealth accumulation and preservation. Avrio’s client base has grown because of our financial planning focus and transparent fee schedule.
How would you describe these changes?
Clients had concerns over market volatility, job loss, pay cuts, business downturn and general uncertainty for the future. Through ongoing financial planning, we addressed our clients concerns about their future. Financial planning builds trust.
What is uppermost in their minds as they think about financial security in the short and long term?
Clients are concerned their financial security may be threatened by inflation, increased taxes, and excessive government spending.
What particular wealth management services do you offer your clients?
Avrio Wealth offers integrated financial planning and wealth management. We develop and refine an investment philosophy with our clients that is implemented over time. It is a set of beliefs and principles that guide the client’s wealth management journey. This may include active cash management, securities, alternative investments, and real estate all aligned with their financial plan.
Because of the detailed knowledge of all our client’s assets, not just their portfolios, we build long term relationships that extend to the next generation.
What types of wealth management services or investment instruments have become popular of late?
Diversification has become popular. Our clients are interested in diversifying across public and private assets with varying levels of liquidity, risk, and return. We do not use esoteric investment instruments, which can’t be easily explained to our clients. Investor education is one of our core tenants. It prepares clients to make informed decisions and establishes trust.
To what factors would you attribute this popularity?
The driving force of diversification is macro-based. With uncertainty caused by the global pandemic, clients may need diversification to help them achieve their short or long term financial goals.
If you can give one piece of advice to a client regarding financial security in the face of the uncertainty we are facing, what will it be?
Comprehensive planning is their roadmap toward achieving their financial goals. It helps alleviate uncertainty by building discipline and a trusted foundation for a future that is yet to be defined.