Institute of Directors

Strategic Planning for Company Exit

Wealth ManagementPaul Cannons

Mike Lenhoff

28 May 2012

Introduction

• The value of investments can fall and you may get back less than you invested.

• Past performance is not a guide to future performance.

• We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website at www.brewin.co.uk

• The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

• The information contained in this presentation is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.

Important information

• Wanting to receive a real rate of return after tax and inflation

• Interested in the preservation of the capital

• Looking to simplify your affairs

• Supporting yourself in retirement

• Inheritance Tax planning

• Transition in circumstances

• Looking to diversify your assets

Potential investment opportunities

How discretionary managers can help

• Guiding you through the increasingly complex world of investments

• Regular monitoring of portfolios is necessary

• Tax efficiency

• Personalised service

• Pro-active management

• Holistic approach to your finances

Alternatives

Who else offers these types of service?

• Independent Financial Advisers (IFAs)

• ‘Wealth Managers’

• Investment arms of large banks

Charging Structures

• Fee

• Commission

• Combination

Example Structure

Dealing Commission

– On First £12,500 1.25%

– Next £12,500 1%

– Balance 0.5%

– Minimum Charge £50

Annual Management Fees

– First £1 million 0.75%

– Next £1 million 0.6%

– Balance 0.375%

- Fees include nominee service, quarterly valuations, accountant reports

- VAT is chargeable on management fees but not on commission

- Stamp Duty of 0.5% is applicable on purchase of UK equities

- PTM levy may be applicable

Investments

• We use cash as a short term home and for ‘easy access’ capital but…

Real Value of £100,000 and ‘Capital Erosion’ (utilising the current 3.5% Bank of England Inflation Rate) on deposit for;

• 1 Year £96,500 -£3,500• 5 Years £83,682 -£16,318

If this rate was to persist in the longer term

• 10 Years £70,028 -£29,972• 25 Years £41,037 -£58,963

The danger of inflation on cash lump sums

Source: This is Money ‘Inflation Danger Calculator’For illustrative purposes only.

Asset types

The above information is for illustrative purposes only and is not intended as investment advice.

Different asset classes have different levels of risk

The above information is for illustrative purposes only and is not intended as investment advice.

Futures & options

Commodities

Corporate Bonds

UK equities

International equities

A sovereign debt crisis in the eurozone has put at risk the stability of the global economy and encouraged a flight to safety in quality bond markets.

83 85 87 89 91 93 95 97 99 01 03 05 07 09 110

2

4

6

8

10

12

14

Source: DATASTREAM

Past performance is not an indication on future performance, Any investment mentioned is for illustrative purposes only and is not intended as investment advice. The value of investments and any income from them can fall and you may get back less than you invested.

UK

US

Germany

Japan

%

yields on sovereign bonds

Seldom is the global economy without hardship yet equities have delivered better real returns over time (inclusive of income) than a number of other asset classes.

78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 1230

200

400

600

800

100012001400

Source: DATASTREAM

Past performance is not an indication on future performance, Any investment mentioned is for illustrative purposes only and is not intended as investment advice. The value of investments and any income from them can fall and you may get back less than you invested.

real returns for alternative asset classes

UK equities

gilts

UK residential property

gold

build soc

-

20%

An investment philosophy and process can offer discipline in helping to cope with difficult as well as comparatively easier times.

03 04 05 06 07 08 09 10 11 12

20%

0%

40%

60%

80%

100%

120%

140%

Past performance is not an indication on future performance. The value of investments and any income from them can fall and you may get back less than you invested.

APCIMS Balanced

BD Balanced Asset Allocation

Source: Brewin Dolphin and DATASTREAM

• Bespoke portfolios designed to meet your individual requirements

• Strength of research capability

• Quality of service

• Independent investment advice

• Clear and consistent investment process; no surprises

• Holistic approach

Key strengths to look for in an Investment Manager…