• David Livingstone

The Benefits Of Mathstone’s Expat Investment Advice

When was the last time you saw or spoke to the person managing your investment portfolio? It’s not unusual for expat investment advisors to try and pull the wool over their client’s eyes and over-charge for their services. At Mathstone, we do things a little differently.

The primary purpose of Mathstone’s expat investment advice is to determine whether it is possible to increase investment returns whilst simultaneously improving the overall structure. Our expat investment advisors will look to reduce the running costs of the funds and improve the credit quality of the underlying holdings within them. In doing so, they can lessen the inherent risk of your investments. Unlike other investment management companies who will charge a fixed fee irrespective of their level of input and the investment performance, at Mathstone we are remunerated by management fees that are usually correlated to the value of investments. All our fees are fully disclosed and agreed with our clients before implementation.

Our Initial Analysis

Once you have confirmed that you would like to work with Mathstone, we will create a formal Suitability Report for compliance purposes and to justify the rationale for the selection of any funds recommended. Prior to that, we will work on some initial comparisons using publically available data. Please be aware that this is not a formal recommendation and is just to give you a sense of the valuable expat investment advice we can offer.

As part of this initial review, we will analyse the existing funds within your portfolio against one of our own preferred core holdings. This is simply a balanced fund which is both geographically and market sector diverse, creating the best possible opportunity for growth whilst minimising volatility and risk.

The Benefits Of Mathstone’s Expat Investment Advice

Delivering A Higher Yield

In our initial review of client’s investments, we typically find that their existing funds tend to be far more volatile than our recommended core holdings. In addition, the net assets of our core holding fund far outweigh those of existing funds, a clear display of investor confidence. We believe that by following our expat investment advice, our client’s will benefit from a higher 12 month yield which is reinvested in the accumulation share class, producing favourable compounded returns in a lower risk category.

Greater Clarity Of Distribution

At Mathstone, we believe that clear and honest communication is vital when it comes to expat investment advice. It’s your money, your pension, that is being invested and you have the right to know exactly how. All too often, expat investment fund managers will be vague and unclear about how your assets are being distributed, simply lumping a lot of them under the title ‘Other’. In some existing clients funds, we’ve seen that over 25% of assets are categorised this way.

Poor Credit Quality

A significant part of our expat investment advice focuses the credit quality of a client’s existing funds. Unfortunately, this quality is often poor. Bonds rated BB or lower are considered to be non-investment grade or junk, and so inherently more risky and likely to default. Equally concerning is the number of existing funds that don’t have any rating at all, leaving client’s totally in the dark about the credit quality of their investment.

Costs And Charges

In our experience, a client’s existing funds are expensive to both enter and run, creating a drag on growth and drastically reducing the effect of compounding. We recognise this and have instead chosen to operate on a management fee basis for our services and only utilise investment platforms that allow our clients to access, or migrate their portfolio to other providers without charge.

At Mathstone, our management fee is 1% per annum of the portfolio value. We firmly believe that our recommendations can compensate for, and produce returns in excess of that figure. At the same time, it allows us to provide our clients with the best service possible, and continue the pursuit of the highest quality, investment-grade securities.

Before switching provider, we would advise that you check whether you are tied into your existing arrangement for a number of years in order to avoid incurring early redemption charges.

We use funds only of the highest quality that in our opinion, offer value for money to investors.

Please note that some of the information on this page is only applicable to UK residents.

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