BROWNING
FINANCIAL PLANNING
Dominic Browning, Managing Director
Posted by Dom Browning
05/05/26
News, Resources, Insight and Opinion from Browning Financial Planning

Pirates in Pinstripes

Dominic Browning, Managing Director
Posted by Dom Browning
05/05/26

The large advice companies and banks market themselves as High Net Worth advisers. They overcomplicate matters and persuade those with larger portfolios that they need "bespoke advice". Why?

The markets work in exactly the same way whether you have £20,000, £200,000 or £2,000,000. The key principles, such as getting the asset allocation right, maximising exposure to global equities, maximising contributions and minimising tax apply to ALL investors.

Pirates in pinstripes (advisers working in the high net worth market) deliberately complicate matters to give their client the impression they are receiving a "bespoke" service. But it is mostly nonsense. More often than not, they will charge large set-up fees to put their "client" in high-charging active funds, with not enough exposure to global equities and too much exposure to alternatives assets which are basically rubbish and which, after fees, produce less than bank accounts.

To add insult to injury, after marketing themselves as investment professionals, they then outsource their core service to a DFM (Discretionary Fund Manager) which adds another layer of fees to the client and even more mediocrity as their portfolios are often packed with low return or no return assets.

A portfolio with 85% or more in global equities should be achieving an average return of 10% per annum. if you are getting a lot less, you are being short-changed.

These type of outfits, with glossy brochures and smooth, well-heeled operators border on white-collar crime, in my humble opinion.

As the amounts invested are large, clients will often be pleased with the monetary amount achieved. Had they only worked out the return as a percentage of the overall portfolio, they would realise how much lost return they were leaving on the table.

More News, Insight & Opinion
Recognising Poor Financial Habits

If you recognise any of the following traits in yourself, please try to change them: Continue

Flexible ISAs

It is commonplace to search on the internet for the best Cash ISA available. You could be looking for instant access, a fixed term or something else. But providers do not make it very clear whether their product is flexible or not. Continue

Weapons of Mass Financial Destruction

The biggest risk to a client portfolio is running out of money in retirement. Continue

Lifestyle Funds and Target Funds - They need a health warning!

We are often asked to look at a client's company pension arrangements, as these will often be a major bedrock of their retirement plan. Continue

The 60:40 Portfolio - A recipe for disaster

For decades, both advisers and investors have regarded the default portfolio for a balanced investor to be a 60:40 portfolio. Continue