At Shelter Offshore we’ve been approached by a handful of our readers and asked our opinion about the Iveagh (pronounced ‘Ivor’) Wealth Fund – this is because they have been introduced to it by their financial advisors or wealth managers, and are looking for additional information about the purpose and structure of the investment fund and how it achieves its advertised ‘risk adjusted returns.’
Now, before I go any further it’s imperative to point out that at Shelter Offshore we’re ‘just’ a collection of expatriate writers and techies, and whilst I personally have a background in financial services, no one at Shelter Offshore is qualified to give any form of financial advice. So whilst I am going to describe the fund and it’s potential features and benefits and explain what ‘risk adjusted returns’ mean in this instance, what you read will be facts rather than advice or opinion.
If you are interested in learning more specific fundamentals about Iveagh and how the wealth fund replicates the high profile asset allocation strategy employed by the Guinness family, you want advice about whether the fund could suit your investment portfolio, you want official brochures and documentation from Iveagh or you want to apply, contact Abbey Financial Solutions from whom we have garnered the research information to create this report. This article does not constitute the advice you are recommended to seek before taking any action with your financial affairs.
Possibly the real reason why the Iveagh Wealth Fund has created something of a buzz in the expatriate marketplace is because it’s being promoted off the back of the Guinness family’s financial successes. Now there’s nothing wrong with finding an interesting way to market a product – particularly a financial product - but it’s also imperative to look closely at any recommendation or option to see whether it is applicable and suitable for your own financial position. Just because a given option seems to offer you a high potential return for example, you need to ensure that it is suitable to your risk profile, your current residential or taxation position perhaps and certainly your short, medium and long-term goals. That is why you are always recommended to seek professional, qualified and experienced financial advice.
The Iveagh Wealth Fund apparently replicates the exact asset allocation strategy used originally by Iveagh to protect the Guinness family money and advance the returns they receive from their wealth. That alone makes it of interest of course. The fund currently open to new investors uses a multi-asset approach in a bid to produce a gross 7 – 10 % return for investors per year. At the same time the team managing the fund employ what’s called ‘a tactical asset allocation process’ that is designed to reduce investment risk. Naturally any investment carries a degree of risk however, and so this is one area where you will need to quiz your adviser – exactly how much is any risk exposure reduced, and exactly what ‘guarantees’ do you have for a) the advertised potential returns and b) the return of your original investment.
According to the Iveagh investment management team themselves: “Our proactive approach to asset allocation enables us to harness returns from rising markets and preserve capital in falling markets. With its mix of growth and wealth preservation, the Fund is suitable as a standalone portfolio, or equally as the core to an integrated investment strategy.”
If you determine, with the advice and assistance of your own wealth manager, that taking advantage of this fund is right or you, the benefits and advantages potentially open to you from using the Iveagh expertise to manage all or part of your savings portfolio include the following: -
- The fund is an accepted one by all of the leading financial institutions such as Friends Provident, Royal Skandia, Irish Life, Generali, Zurich, Hansard, Royal London etc.
Iveagh employs broad global diversification within the investment portfolio
- The underlying investment mandate is highly flexible which is how the managers are able to protect capital in bad markets and seek profits when markets are rising
- The investment team managing the fund apparently have ‘unrivalled’ experience when it comes to asset allocation
- You have daily liquidity
- Investment into the fund is very simple and you have significant transparency when it comes to seeing how and where your money is invested and managed
According to Iveagh: “Our overriding objective is to manage risk in such a way that the wealth remains intact to be passed from one generation to the next.
Risk management is an integral part of our portfolio management. We believe that it is our job as investment managers to manage risk on behalf of our clients according to market conditions. We aim to increase the portfolio return and reduce downside risk by making decisive tactical adjustments to holdings when required.
“We use a sophisticated investment process to form a view of prevailing economic and market conditions from which we judge where our portfolios should be by reference to a risk scale. At its heart our process comprises three core activities:
• Macroeconomic Modeling - to predict growth , inflation, and other important variables.
• Valuation and Technical Analysis - to identify where investment risks and opportunities might lie.
• Market Intelligence - to determine where capital flows are heading next.”
According to the wealth managers we have spoken to, the fund is most likely to be suited to those who are relatively risk averse and who are looking for a medium to long-term approach to investing their wealth for preservation and advancement – however, once again it is absolutely imperative to point out that this does not constitute advice, and that you have a very individual financial and personal position that has to be assessed by a professional with regard to how and where you should invest your money!
To that end, if you are interested in speaking to a professional about this specific fund or the overall management of your wealth status and you are an expatriate, please contact Abbey Financial Solutions with a brief description of your enquiry and you will be directed to a qualified individual wealth manager who can assist you – with no obligations placed upon you to take their advice or recommendations.
