Wealth Structuring - Looking for the right solution
WEALTH STRUCTURING
LOOKING FOR THE RIGHT SOLUTION
Client name - 11.11.2025
Katie Booty - Affinity Invesment
katiebooty@affinitypw.com (+44) 1534 849881
Katie is a dedicated wealth management professional with a strong commitment to helping clients navigate the complexities of international finance and investment. With a background in wealth advisory work and financial analysis, she specialises in evaluating wealth management
solutions for high-net-worth individuals, families, and trustees. Her approach combines rigorous research, clear communication, and a deep understanding of global markets, matched with a strong focus on individual client needs. Katie produces detailed comparative reviews designed to demystify the wealth management selection process, ensuring clients and trustees have the knowledge and confidence to select partners who can safeguard and enhance wealth over the long term.
Wealth structuring is a critical process for individuals and families seeking to preserve, grow, and efficiently transfer wealth across generations and jurisdictions. In today’s increasingly complex financial landscape, selecting the right wealth manager has never been more important. This document has been prepared to provide a clear, comparative overview of leading wealth management firms, including their investment philosophies, performance, fees, and service offerings.
The aim is to support informed decision-making by identify the providers that best aligns with the specified financial objectives, values, and unique circumstances.
If you have any questions or would like to discuss the analysis further, please do not hesitate to contact Katie via email.
Trying to see the Wood for the Trees
Choosing the right wealth manager isn’t just about performance. It’s about building a long‑term relationship with advisers who really understand the family behind the structure; their values, priorities and what they’re trying to achieve over generations.
Getting the right mix of managers, services and investment strategy is a core part of good stewardship. With ongoing oversight, we make sure the investment approach stays aligned with the set objectives, helping to preserve and grow assets over time. The ongoing monitoring and oversight of the investment strategy sits at the heart of what we do.
Investment Policy Statement (IPS)
Understanding our client’s position, goals, and aspirations is formalised in the IPS.
Ongoing Oversight
Oversight continues through regular monitoring of manager decisions, ensuring alignment with the IPS.
Manager Appointment
Potential managers are invited to tender and present. Our conclusions are documented, setting out the rationale for selection before final appointment.
Manager Selection
Our extensive experience selecting and monitoring investment and wealth managers allow us to look beyond performance.
Investment Strategy Comparison
Comparison of Managers, using our scoring framework.
Investment Policy Statement (IPS)
The Investment Policy Statement (IPS) gives trustees a clear view of what the client is trying to achieve, what matters to them, and their long term wealth objective. It turns those priorities into clear investment objectives and practical parameters; including risk appetite, time horizon, liquidity needs and any specific constraints.
By setting this framework upfront, the IPS helps trustees assess whether proposed investment strategies and managers are genuinely appropriate for the client’s circumstances. It creates a clear link between the investment approach and desired outcomes.
The IPS provides the foundation for selecting and overseeing wealth managers, helping ensure any appointed manager remains aligned with the agreed mandate and long‑term objectives. Rather than being a one‑off exercise, the IPS acts as a living framework that evolves alongside changing markets and client circumstances, guiding ongoing investment reviews and regular suitability assessments so potential issues can be identified early and adjustments made in a measured and disciplined manner.
Build the IPS (set the framework)
Understand the client
• Objectives and Priorities
• What matters long term
• Wealth position (incl. family balance sheet)
Translate into an IPS
• Investment objectives
• Risk appetite & tolerance
• Time horizon & liquidity
• Constraints (tax/legal/ESG/ structural)
Create practical parameters
• Asset allocation ranges
• Restrictions & concentration limits
• Benchmarks & monitoring cadence
• Manager mandate (what “good” looks like)
Suitability checks (keep it aligned)
Manager Selection
Experience across manager and market cycles
Working with a wide range of investment specialists means we have a practical understanding of how managers operate day‑to‑day, beyond what is visible in marketing material or short‑term performance data. As can be seen from the considerations below.
What we assess when reviewing Investment Managers
Investment approach and philosophy
We assess how clearly a manager’s investment philosophy is articulated, how consistently it is applied in practice, and whether decision‑making aligns with the stated objectives and mandate.
Risk and performance behaviour
We review performance across different market conditions, with particular focus on volatility, drawdowns and downside protection, rather than short‑term returns in isolation.
Blending managers and strategies
Team quality and stability
We consider the depth, experience and stability of the investment team, including key person risk, succession planning and the resilience of the broader research and portfolio management function.
Service, governance and reporting
We assess operational robustness, governance structures, transparency, quality of reporting and the manager’s ability to meet the ongoing service requirements of the trust.
Blending investment managers and strategies is a fundamental part of effective portfolio construction. Different managers have distinct investment styles, processes, and areas of expertise, so their performance will vary over time. Combining complementary approaches across asset classes and regions reduce reliance on any single manager or fund, lowering concentration risk and helping to smooth returns.
This approach reflects the cyclical nature of markets. No single strategy consistently outperforms in all environments. A diversified mix of strategies or asset allocations allows different parts of the portfolio to contribute at different times, improving resilience over time. Blending also supports good governance by allowing performance and risk to be assessed at both the individual manager and total portfolio level. This encourages a disciplined, long term focus and reduces pressure to react to short term underperformance.
Before an investment manager is included in our core offering, we carry out thorough due diligence to ensure they meet our standards for governance, capability, and suitability. This includes confirming regulatory status, reviewing ownership and financial stability, assessing the experience and depth of the investment team, and understanding how investment decisions and risk are managed in practice.
We evaluate performance over time in the context of risk and consistency. Only managers that demonstrate strong governance, a clear and repeatable investment approach, and the ability to deliver consistent outcomes are included.
Our Core Offering Comparison is a central tool that provides a clear, side‑by‑side view of the wealth managers, including their services and strategies. It supports effective comparison and helps identify those best aligned with our requirements.
The below table provides a high‑level comparison of the services and investment capabilities offered by the wealth managers we work with. It highlights areas of common coverage and differences in specialist offerings, and is used as a practical reference when assessing suitability and identifying which managers, or combination of managers, best align with a trust’s requirements.
Cash management
Multi‑asset discretionary
Bespoke mandates
ESG‑aligned strategies
Private equity and hedge funds
Lending
Cross‑border tax understanding
Philanthropy and corporate advisory
Education programmes
Dedicated team
*The parameters we review are bespoke to each client; the above table is for demonstration purposes only.
Manager 1 Manager 2 Manager 3 Manager 4
Investment Strategy Comparison
Our Investment Risk Analysis Comparison tool allows us to assess the performance and risk characteristics of shortlisted investment managers in a clear and consistent way.
Managers are assessed over the same time periods, with performance measured net of fees and full cost data built into the analysis. This provides a clear basis for deciding which managers should progress to the tender stage.
Risk Analysis Comparison
The risk analysis offers a side‑by‑side view of each manager’s long‑term risk and return profile, helping trustees understand how different strategies perform in comparable conditions.
The focus is on how efficiently returns are generated relative to risk taken, alongside a clear assessment of costs, including TER and pricing at scale. Each manager is evaluated against a set of key criteria and given a structured score, with lower scores reflecting stronger relative performance and risk management. These inputs are brought together in a structured scoring framework that highlights managers demonstrating the strongest mix of performance consistency, downside protection and cost efficiency.
Evaluation Metrics
Our analysis considers a small number of clearly defined measures, including:
• Cumulative performance (3 and 5 years): total return net of fees
• Maximum drawdown: largest peak‑to‑trough decline, highlighting downside risk
• Volatility: the degree of return fluctuation and overall stability
• Sharpe ratio: efficiency of risk‑adjusted returns
• Fees and TER: total cost of investment based on invested amounts
Ranking Methodology
Managers are ranked based on an aggregate risk score derived from the above metrics.
• Lower score = stronger overall profile: (reflecting better risk adjusted returns, stronger downside protection, and more competitive costs)
• Higher score = weaker relative profile: (driven by higher risk, lower efficiency, or higher costs)
Rankings are presented on a relative basis (for example first, second, third), making outcomes easy to compare and interpret.
4
Outcome
Overall, the analysis provides a consistent, evidence‑based way to compare investment managers on a genuinely like‑for‑like basis. It clearly identifies those delivering the strongest balance of performance, risk control and cost efficiency, supporting informed, disciplined and well‑documented selection decisions.
Investment Manager Comparison Tool
How we compare managers and assess overall suitability.
Structured, standardised comparison
Performance
Maximum drawdown Volatility
Risk-adjusted return
Fees
Step 1 – Data collection - Performance, risk and cost data gathered for each manager across agreed time periods.
Step 2 – Verification and standardisation - Data is checked and aligned to ensure consistency across providers.
Step 3 – Comparative assessment - Managers are evaluated using the same metrics and methodology.
Step 4 – Risk and return considered together - Returns are assessed alongside volatility and drawdowns, not in isolation.
Step 5 – Trade-offs identified - Strengths, weaknesses and balance between risk, return and cost are clearly highlighted.
Step 6 – Judgement applied - Quantitative outputs are considered alongside qualitative insight and practical experience.
Overall risk score
• Brings together risk, return and cost in a single view.
• Allows clear comparison between shortlisted managers.
• Highlights relative strengths, weaknesses and trade‑offs.
• Supports trustee discussion and informed judgement.
Manager Appointment
At this stage, we’ve reviewed the investment proposals received and carried out an initial assessment against the agreed objectives, risk parameters and requirements. The focus here is to narrow the field and identify which managers are best placed to move forward to the next stage of the tender process.
Shortlisting is based on more than performance alone. We look at how clearly each manager has articulated their investment approach, how well their proposal aligns with the Investment Policy Statement, and whether their risk profile, diversification approach and fee structure appear appropriate. At this point, we’re looking for managers who not only meet the core requirements, but who can clearly explain how their strategy would operate in practice. Managers invited to present are those where further discussion would add real value.
At the presentation stage, we already know that the managers can meet our requirements, however, it provides an opportunity to explore aspects that cannot be fully assessed on paper. This stage plays an important role in seeing which managers best demonstrate a strong alignment with our priorities, values, and long term expectations. It allows us to assess whether they are a team we like and believe we can work with constructively and effectively over time.
Ongoing Oversight
Once an investment manager has been appointed, the focus shifts to making sure the strategy continues to do what it was set up to do.
Ongoing oversight isn’t about reacting to short‑term market noise. It’s about regularly checking that performance, risk and portfolio positioning remain aligned with the agreed objectives and the Investment Policy Statement, so the approach stays appropriate as markets move and circumstances change.
Regular reviews allow us to understand what has driven outcomes, how risks are being managed, and whether there have been any changes to the strategy or the team. Where concerns arise such as sustained underperformance, increased risk or a shift in approach these are identified early and addressed in a structured way, with issues challenged and escalated where necessary.
Ongoing monitoring ensures that the investment strategy remains suitable over time. Where required, this process can lead into further review, re‑tendering or changes to the mandate, ensuring the overall framework remains robust and forward‑looking.
C lient Objectives and Shortlisted Investment Solutions
Now that we’ve covered how we generally go about selecting and reviewing investment managers, the next section turns specifically to you.
We have highlighted your objectives, risk preferences, and any key considerations, and talk through how this approach has been applied to shape the investment managers selected based on the solution being proposed.
This section sets out the recommended managers and explains why they are considered appropriate in the context of your long term objectives and fiduciary requirements. This includes an overview of the recommended managers for consideration and why we feel they are a good fit for your circumstances and longer‑term goals.
Client Summary and Objectives
Trust/Company
Investment Objectives
Time Horizon
Risk Profile
Liquidity Requirements
Income Requirements
Asset Allocation Approach
ESG / Responsible Investing
Restrictions & Constraints
ABC EXAMPLE TRUST
Long‑term capital growth, whilst maintaining preservation of capital during adverse market conditions. Returns targeted above inflation based on UKCPI +a over a 5 year rolling cycle – UK CPI +3% . Placeholder for more PERSONALISED TEXT for client.
Long‑term investment horizon, allowing for short‑term market volatility in pursuit of sustainable long‑term outcomes. Comfortable investing with a 10 year plus view.
Medium High overall risk tolerance. Acceptance of normal market fluctuations, supported by disciplined risk management and clear awareness of downside risk.
The portfolio should maintain sufficient liquidity to meet known or anticipated distribution requirements, while allowing for some less liquid investments where appropriate. Expectations are that 70% of assets should be available within 7 days.
No immediate income requirement. Placeholder for more PERSONALISED TEXT for client.
A diversified, multi‑asset portfolio with appropriate geographic, sector and asset class diversification. Placeholder for more PERSONALISED TEXT for client.
ESG considerations taken into account where relevant, particularly where they support long‑term risk management and sustainability, without necessarily adopting a strict exclusionary approach.
Investment restrictions are defined to ensure suitability for the trust structure, client jurisdiction and regulatory environment. These include the exclusion of UK and French situs assets, the use of offshore UK reporting funds only, a preference for distributor share classes, and a clear separation between capital and income. THIS WILL BE DELETED IF NOT REQUIRED.
Recomended Wealth Managers
The recommended investment managers were shortlisted as a result of this structured review process designed to reflect your objectives, risk profile and governance requirements. In our view, these managers show a strong strategic fit with the trust’s needs, particularly in balancing long‑term growth with disciplined risk management. Their investment approaches are clearly articulated and have been applied consistently over time, including through more challenging market conditions, which gives confidence in how decisions are made.
When assessed on a like‑for‑like basis, these managers stood out on a risk‑adjusted basis rather than on headline performance alone. We looked closely at volatility, drawdowns and how efficiently returns have been generated relative to the risks taken. Fees were also an important part of the assessment and were considered reasonable given the scope of services provided, the quality of investment oversight, and the strength of governance and reporting.
Our recommendation also reflects the managers’ ability to support on an ongoing basis. Each demonstrated strong operational standards, robust governance and a constructive approach to working with trustees as part of the ongoing monitoring process. Taken together, this combination of strategic alignment, risk awareness, transparency and reporting capability underpins why we believe these managers are well suited to meet the trust’s investment requirements, both now and over the longer term.
Why these firms stood out:
Shared Principles; Each firm demonstrates a strong commitment to transparency, responsible investing and effective stewardship.
ESG Integration & Responsible Investing; All shortlisted managers integrate environmental, social and governance considerations within their investment processes.
Client-Centric Approach; These firms prioritise bespoke solutions, long‑term relationships and clear, proactive communication.
Global Expertise with Local Understanding; They combine international capability with local knowledge to support cross‑border planning and regulatory needs.
Proven Track Record; Each provider operates within a disciplined investment framework, supported by strong governance, risk management and consistent performance.
Barclays Private Bank
BRIEF HISTORY OF THE FIRM
Barclays was founded in 1690 and is a major global financial services provider. It is publicly listed on both the London Stock Exchange and the New York Stock Exchange and is a constituent of the FTSE 100 index. The firm operates across retail banking, credit cards, corporate and investment banking, and investment management. Barclays Private Bank serves a wide range of clients including ultra‑high‑net‑worth individuals, family offices, corporates, charities, and sovereign wealth funds. As of June 2025, the Private Bank manages over £197.6 billion in assets and liabilities, with £29.53 billion managed by the discretionary investment team
INVESTMENT PHILSOSOPHY
Barclays follows a long term, high conviction, globally diversified active investment approach.
The strategy emphasises:
• Direct investment in high‑quality companies with strong fundamentals and low leverage
• ESG integration in security selection
• Bottom‑up stock selection supported by proprietary and third‑party research
• Average holding periods (~7 years), focus on sustainable growth & capital preservation
INVESTMENT PROCESS
PLACEHOLDER READY FOR UPDATED VERSION FROM KB
• Top down macroeconomic analysis via the Asset Allocation Committee
• Bottom up fundamental research across equities, fixed income, and alternatives
• Security selection based on free cash flow, durability, alignment, and valuation
• Portfolio construction guided by strategic and tactical asset allocation
• Ongoing monitoring through internal committees and risk systems
INVESTMENT SOLUTIONS AVAILABLE
Barclays offers a broad suite of investment and banking solutions, including:
• Discretionary Portfolio Management: Bespoke mandates tailored to client restrictions
• Multi-Asset Class Strategies: Five risk profiles with strategic/tactical allocation.
• Direct Equity and Fixed Income Selection: ESG integrated equities and fixed income.
• Alternative Investments: Private equity, hedge funds, structured products.
• Securities-Backed Lending: Portfolio overdrafts with no non‑utilisation fees.
• Cash Management: Short term liquidity and deposits.
• Responsible Investing: Stewardship and voting with EOS at Federated Hermes.
• Concentration & Counterparty Risk Managed through diversification and mandate limits.
• Currency & Interest Rate Risk
• Emerging Market & High Yield Risk - Higher volatility and credit exposure.
ADMINISTRATION AND REPORTING SUMMARY
• Online Access - Real‑time portfolio valuation via Barclays One. Consolidated performance, holdings, and asset values.
• Valuation Statements - Flexible (monthly, quarterly, or ad hoc) reports.
• Investment Committee Updates - Position updates with direct access to portfolio managers and responsible investment specialists.
• Market Insights - Weekly updates, ad hoc research, and biannual ‘Market Outlook’ events, with optional tailored calls.
LGT PRIVATE BANKING
BRIEF HISTORY OF THE FIRM
LGT Wealth Management US is a subsidiary of LGT Wealth Management UK LLP, itself part of the LGT Group—the world’s largest private bank and asset manager owned by a single family, the Princely Family of Liechtenstein. With over 90 years of private ownership, LGT has grown into a global institution with over £323.9 billion in assets under management and offices in 30+ locations worldwide
INVESTMENT PHILSOSOPHY
LGT WM US emphasises:
• Client first, transparent service
• Long term partnerships built on trust and respect
• High conviction, bottom up investing focused on quality companies with strong fundamentals
• Avoidance of Passive Foreign Investment Companies (PFICs) to maintain tax efficiency for US connected clients
INVESTMENT PROCESS
Their process blends:
• Top-down macroeconomic views from an Investment Committee
• Bottom-up security selection using qualitative and quantitative research
• Core and Satellite portfolio construction:
• Core: Best in class global companies
• Satellite: Thematic, regional, or sector specific opportunities
• Low turnover and long-term holding strategies to reduce costs and manage volatility LINK TO FULL PROPOSAL
INVESTMENT SOLUTIONS AVAILABLE
LGT WM US offers:
• Model portfolios across five risk levels.
• Bespoke portfolios tailored to individual needs.
• Sustainable investment options aligned with UN SDGs.
• Alternative investments including private equity, property, EIS, and structured products
• Lombard lending via LGT and RBC platforms
VOLATILITY
Five risk profiles are defined:
• Low to High, with equity exposure ranging from 35% to 100%.
• Portfolios are constructed to match each client’s risk tolerance and investment horizon
PERFORMANCE
TEAM STRUCTURE
KEY TEAM MEMBERS INCLUDE:
• Nick Blogg – Partner & Wealth Manager
• Ben Alvey – Associate Wealth Manager
• Maddison Petre – Investment Assistant
• Swaati Osborne – Head of Wealth Planning
• Hannah Pulleyn – Wealth Planner
• Lydia Blackman – Trainee Paraplanner
FEES
Standard fee: 1.04% (0.79% investment + 0.25% custody)
Discounted fee: 0.75% total (0.50% investment + 0.25% custody)
KEY RISKS
Total Expense Ratio (TER): ~0.77% including ETF costs
No entry/exit, transaction, or reporting fees
The proposal outlines a comprehensive set of risks, including:
• Market volatility and currency fluctuations
• Tax implications for US‑connected clients
• PFIC exposure and non reporting funds
• Capital at risk: Investments may lose value
ADMINISTRATION AND REPORTING SUMMARY
Clients receive:
• Regular performance reports and commentary
• Quarterly and monthly market outlooks
• Annual US and UK tax packs
• Online access via LGT Wealth portal
• Secure messaging and paperless options
MASECO
BRIEF HISTORY OF THE FIRM
MASECO Private Wealth was founded in 2008 in response to the introduction of the UK’s non domicile tax rules. The firm was the first UK financial services company to become a certified B Corporation and has since grown to manage over $4.4 billion in assets with a team of 120 professionals.
INVESTMENT PHILSOSOPHY
MASECO employs a disciplined, evidence based investment philosophy that avoids market timing and stock picking. Their approach is grounded in academic research and focuses on:
• Long term, risk adjusted returns
• Diversification
• Cost and tax efficiency
• Strategic asset allocation
• Avoidance of PFICs and tax inefficient structures LINK
INVESTMENT PROCESS
MASECO’s four stage investment process includes:
• Formulating a Baseline – assessing market risks and expected returns
• Implementation – using low cost, tax efficient vehicles
They offer both direct stock/bond and ETF based portfolios, with a strong emphasis on US funds with UK reporting status to avoid punitive tax treatment
INVESTMENT SOLUTIONS AVAILABLE
MASECO provides:
• Bespoke discretionary and intermediated portfolio management
• Wealth planning and financial modelling (e.g., Voyant software)
• Andrea Solana – Partner & Head of Advanced Planning
• Damian Barry – Partner & Chief Investment Officer
FEES
First $5M: 0.895%
Over $5M: 0.70%
Minimum annual fee: $5,000
KEY RISKS
TER for proposed portfolios: 0.16%–0.17%
No performance, entry/exit, or admin fees beyond $50/year/account
• Exposure to PFICs and Offshore Income Gains can lead to punitive taxation.
• Currency fluctuations can create unexpected tax liabilities.
• MASECO mitigates these through:
• Use of US funds with UK reporting status
• FX aware rebalancing
• Proprietary tax reporting and coordination with tax advisers
ADMINISTRATION AND REPORTING SUMMARY
Clients benefit from:
• Quarterly performance scorecards
• Customised UK and US tax reporting
• Real time FX data integration
• Coordination with tax advisers
• Online access and paperless options
W1M
BRIEF HISTORY OF THE FIRM
W1M was formed in 2024 through the merger of Waverton Investment Management and London & Capital. Both firms were originally founded in 1986. The merged entity consolidated under the W1M brand in 2025 and now manages over $28.8bn in assets with offices in London, Edinburgh, Glasgow, Barcelona, and Barbados.
INVESTMENT PHILSOSOPHY
W1M’s philosophy is built on four pillars:
• Global: Access to a broad universe of opportunities.
• Active: Emphasis on asset allocation and security selection.
• Direct: Preference for direct investments over pooled funds.
• High Conviction: Concentrated portfolios with deep understanding of holdings. They also integrate ESG factors into their investment decisions and engage actively with companies to promote responsible practices
INVESTMENT PROCESS
The process combines:
• Top down macroeconomic analysis via the Asset Allocation Committee
• Bottom up fundamental research across equities, fixed income, and alternatives
• Security selection based on free cash flow, durability, alignment, and valuation
• Portfolio construction guided by strategic and tactical asset allocation
• Ongoing monitoring through internal committees and risk systems
INVESTMENT SOLUTIONS AVAILABLE
W1M offers seven risk based mandates:
• Equity
• Growth
• Balanced
• Cautious
• Defensive
• Conservative
• Bonds
Each has defined volatility bands and return targets (e.g., Balanced targets
CPI+3.0% with 5–14% volatility)
VOLATILITY
Volatility is used as a primary risk measure, with mandates ranging from:
High volatility (Equity: 8–23%)
Medium (Balanced: 5–14%)
Low (Conservative/Bonds: 3–10%)
W1M also considers liquidity and inflation risks and uses diversification and active management to mitigate them
PERFORMANCE
TEAM STRUCTURE
• Nicole Ralph: Wealth Manager, US Private Wealth
• Peter Grant: Portfolio Manager, Financial Intermediary Office
• William Dinning: CIO, leads a 32 member investment team
• Team includes heads of asset classes and ESG specialists
FEES
Management Fee: 1.00% for portfolios up to $5m.
Total Estimated Expense Ratio: 1.09% in Year 1, 1.05% thereafter
KEY RISKS
Includes FX, custody, and product costs
Fees are all-inclusive for investment management and US-compliant wealth advice
The proposal outlines a comprehensive set of risks, including:
• Market volatility and drawdowns
• Liquidity risk: mitigated through asset selection
• Inflation risk: addressed via diversified, real return seeking strategies
• Currency risk: selectively hedged in fixed income, not typically in equities
ADMINISTRATION & REPORTING SUMMARY
The proposal outlines a comprehensive set of risks, including:
• Annual Reports: Investment report, tax certificates, US specific tax documents (e.g., 1099, 3520)
• Online Portal: 24/7 access to portfolio data.
• Transition Support: Flexible onboarding, including in specie transfers
Glossary
Balanced Risk Profile
A portfolio approach seeking a mix of capital growth and capital preservation, typically combining growth assets (e.g. equities) with defensive assets (e.g. bonds).
Base Currency
The currency in which portfolio performance, reporting, and risk are primarily measured (USD in this mandate).
Benchmark
A predefined reference index or standard (e.g. a market index or composite benchmark) used to evaluate portfolio performance, risk, and consistency relative to investment objectives.
Bottom-Up Investment Philosophy
An investment approach focused on security-level analysis and company fundamentals, with limited reliance on macroeconomic views.
Capital Growth
An increase in the value of investments over time, realised when assets are sold at a higher price than their purchase cost.
Capital Preservation
An investment objective focused on protecting the real value of capital and limiting downside risk.
Distributor Class Units
Fund share classes that distribute income rather than reinvesting it, allowing income to be clearly identified for tax purposes.
Discretionary Management
An arrangement in which the investment manager makes day-to-day investment decisions within agreed mandate parameters, without prior approval for each transaction.
Equities
Ownership interests in companies (shares or stocks) that participate in a company’s growth and profitability, typically offering higher long-term return potential with higher short-term volatility.
Equities (Infrastructure)
Shares in listed companies that own, operate, or manage essential infrastructure assets such as utilities, transport networks, energy pipelines, communications infrastructure, and renewable energy assets. These investments often provide long-term, stable cashflows and some inflation linkage but remain subject to equity market risk.
Equity Style (Value vs Growth)
Value stocks typically trade at lower valuations and provide income support, while growth stocks focus on future earnings expansion and capital appreciation. Portfolios may combine both styles to diversify equity risk across market cycles.
ETF (Exchange Traded Fund)
A pooled investment vehicle that tracks an index, asset class, or strategy and is traded on an exchange like a share, typically offering low costs, transparency, and daily liquidity.
Fixed Income
Debt instruments (such as bonds) that pay interest and return principal over time, generally used to provide income, capital stability, and diversification.
Hedge Funds
Actively managed investment strategies that may use leverage, derivatives, and short selling to generate returns across a wide range of market conditions; typically more complex and less liquid than traditional funds.
Illiquid Assets
Investments that cannot be readily sold or converted into cash without delay or material price impact (e.g. private equity or direct property).
Income Distributions
Payments of income (such as interest or dividends) generated by investments and paid to investors.
Index Tracker (Index Fund)
A passive investment fund designed to replicate the performance of a specific market index by holding the same, or a representative sample of, securities in similar proportions.
Investment Horizon
The expected length of time investments are held, which influences risk tolerance, asset allocation, and investment selection.
Liquidity
The ease with which an asset can be converted into cash without significant loss of value.
Macro Factors
Broad economic, political, or market-level forces that influence asset prices and investment returns.
Micro Factors
Company-specific or security-level characteristics such as earnings, balance sheets, management quality, and competitive position.
Peer Group
A set of comparable investment managers, portfolios, or funds with similar risk profiles, objectives, and asset allocations, used to assess relative performance.
PFIC (Passive Foreign Investment Company)
A non-US investment structure subject to punitive US tax treatment unless specific reporting requirements are met by US taxpayers.
Private Credit
Non-bank lending to companies or projects, typically providing floating-rate income and contractual cashflows, with higher risk and lower liquidity than public debt markets.
Private Equity
Investments in privately held companies or buyouts of public companies, aimed at long-term capital growth through operational improvement and strategic change; inherently illiquid.
Property
Direct or indirect investment in real estate assets, generating returns through rental income and capital appreciation; typically illiquid and valuation-sensitive.
Rolling Return
A return measure calculated over overlapping periods (e.g. five-year rolling returns) to reduce the impact of market timing.
Situs
The legal location of an asset for tax purposes.
Strategic Asset Allocation
The long-term target mix of asset classes in a portfolio, set in line with investment objectives, risk tolerance, and time horizon.
Tactical Asset Allocation
Short- to medium-term adjustments around the strategic asset allocation, made in response to market conditions, valuation opportunities, or risk considerations.
Target Return
The annualised return range the portfolio aims to achieve over the long term; not a guarantee of performance.
Top-Down Investment Philosophy
An investment approach driven primarily by macroeconomic analysis and asset allocation decisions before security selection.
Total Return
The combined return from capital growth and income generated by an investment.
Volatility
A statistical measure of the degree to which investment returns fluctuate over time; higher volatility indicates higher risk.
Disclaimer
Affinity Trust Limited is regulated by the Jersey Financial Services Commission to conduct trust company business. Affinity Private Wealth and Affinity Trust are trading names for Affinity Trust Limited. Registered office 27 Esplanade, St Helier, Jersey JE2 3QA.
Affinity Private Wealth is a trading name of Affinity Corporate Services (Middle East) Limited. Affinity Corporate Services (Middle East) Limited is registered with the Dubai Financial Services Authority as a DNFBP and is commercially licensed by the Dubai International Finance Centre as a Corporate Services Provider.
This document is for discussion purposes only and is not an advertisement and does not constitute an offer to take any products or services. This document has been provided to you in a private and confidential manner and may not be reproduced or disseminated to third parties without prior written consent.
