When you have significant wealth, I think it is a trap to rely on only one adviser for all your needs. Managing significant wealth is complex and markets are constantly changing. I believe you need multiple sources of information and ideas to make the most of your wealth. Running sleeves of money with several different advisers be they private bankers, financial advisers, or stockbrokers, makes complete sense to me.

The main benefit of having multiple advisers is that it enables you to harness a range of expertise. In my years of dealing with different private bankers and wealth managers, you soon realise that each has their own strengths and weaknesses. Some have excellent deal flow, some are great at alternatives and some really have their pulse on the market. By using several advisers, you can harness their strengths and use their specialised skill sets to build your portfolio.

Running your wealth using multiple advisers gives you access to multiple ideas and deal flow. Different advisers specialise in different areas of the market. Choose your advisers well and you will get to see a great array of ideas and deals. This gives you the opportunity to pick and choose between investments and adding to the diversity of your portfolio.

Having multiple advisers guards you against biases. We all have them. Listening to different points of view can challenge your beliefs. It can get you thinking about investments that you may not have considered before or challenge you on positions you may already own. I think being open to new ideas and re-thinking your positions is an important part of being a good investor, exposure to multiple advisers helps you with this.

The problem with using multiple advisers, some would argue, is that it increases the complexity of managing your wealth. This is where I come in. One of the families I work with has 3 external advisers, as well as me as their Chief Investment Officer (CIO). I take the hassle out of using multiple advisers by overseeing their total wealth position, helping them to structure their portfolios and managing their total asset allocation. I also filter ideas from all their advisers and help the family to blend all the advice they are receiving into a cohesive total portfolio which represents their values and works towards their goals. I am the sounding board for the family and extra set of eyes over their entire position. I give the family the support to ensure that they have the confidence and clarity to make decisions they are 100% comfortable with.

At the end of each quarter, the family and I meet with each adviser to discuss their sleeve of the portfolio, the outlook, new ideas or things we might be missing. I then pull everything together and work with the family to distill all the advice given into actions and to set the total wealth strategy for the next period. I also track the family’s progress towards their goals.

It has been wonderful to see the outcomes we have achieved. Each sleeve has added value over time and the combination of the 3 advisers, each with their own specialisation, has worked extremely well. The family feels like they are getting more from all their advisers than ever before because they have a framework for decision making and the family are now clear on what they are trying to achieve. I make the process simple and by having me as their sounding board, the family has more confidence to make decisions. Collaboration really works.

If you would like to know more about how we collaborate with high-net-worth individuals and families to get the most out of their all their advisers, organise a 15-minute chat with us here.

Kind regards,

Shelley Marsh
Outsourced Chief Investment Officer (OCIO) & Founder
Wealth Differently

General Advice Warning: This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. It does not represent and is not intended to be personal advice.  Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.  We strongly suggest that you seek professional financial advice before acting.

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