Building for the future
Nick Percy-davis, an investment manager at Charles Stanley, compares the challenges of restoring a period house and managing a bespoke investment portfolio.
QRestoring a house can often create unforeseen problems. How do you, as an investment manager face unexpected changes in the market?
AAt Charles Stanley we are fortunate to have access to the research, technology and expertise that puts our investment professionals in a unique position of being able to respond quickly to changes in the market —taking advantage of opportunities and helping our clients protect themselves from unnecessary risk. We can also attempt to mitigate the effects of market movements by ensuring we build diversified portfolios, which means investing in a variety of different assets. The saying ‘don’t put all your eggs in one basket’ is especially true when it comes to investing. A well-constructed portfolio helps to reduce overall portfolio risk and deliver consistent returns over the long term. Diversification can also provide an opportunity to achieve positive returns in one market, even when another market isn’t performing so well.
QA restoration project requires patience and a keen eye for detail. How are these qualities important in successful investment management?
ARestoration projects do not happen overnight, and nor are you likely to achieve your investment objectives this quickly. Although long-term investing does require a degree of patience, the advantages can be significant, for example, if you compare markets now to where they were a decade ago, there has been a significant improvement. That being said, past performance is not a reliable guide to the future, and we recognize it requires courage and conviction to stay invested when markets are experiencing lows, which is where our guidance and keen eye for detail comes in.
Keeping on top of emerging trends, such as new developments in technology, is a key part of our role. We spend time researching and identifying these trends in order to anticipate their potential impact on the markets and the underlying assets in a portfolio.
QKnowledge and expertise are vital to the successful restoration of a period house. How do Charles Stanley investment professionals gain expertise required to fully understand opportunities and challenges of investing?
AExpertise is gained through a mixture of advanced professional qualifications, experience and collaboration—with over 22 years’ experience, it is important that I collaborate and share that knowledge with more junior colleagues. We are also fortunate that, at Charles Stanley, we have resources and expert knowledge across the business to draw on. In addition to our 16-strong investment-strategy committee, we also have specialist analysts covering a variety of investments, such as funds and bonds, as well as stocks and shares.
QHow do you use that expertise to meet your clients’ needs?
AWe always start any new relationship by spending time getting to know the client, including their ambitions, concerns, attitude to risk and preferred way of working in order to provide the best service possible. Once we have a clear understanding of what they would like to achieve, we can then look objectively at their plans and apply a long-term view, building a portfolio that continues to work hard as priorities change. Combining the analysis and recommendations of our experts with the research and ideas within our own teams, we can make the most appropriate investment decisions on behalf of our clients while maintaining focus on their objectives.
QFinally, how do you work with your clients?
AThere is no one-size-fits-all approach at Charles Stanley. We have a collaborative relationship with clients, which starts with gaining a full understanding of the client’s financial situation. We also consider whether they’re investing for the purpose of growth, income or with the next generation in mind as this will impact how their investment portfolio is constructed. Something all our relationships have in common is that they’re all built upon trust; as an investment manager, it’s important to recognise the trusted position we are in and the responsibility of providing stewardship of our client’s assets. For further information about our services, please call us on 02035537281 or visit www.charles-stanley.co.uk