National advisory firms have come out in support of the less wealthy consumer a week after Brewin Dolphin announced it would no longer serve clients with portfolios of less than £150,000.
Mark Rushton, chief investment officer at Walker Crips, said clients with more modest portfolios could still be well-served, adding that the firm had many clients with less than £150,000.
He said: “We are not moving away from providing a bespoke service for clients with modest portfolios as it would mean turning our back on long-standing, loyal clients. With no specified minimum we prefer to address clients’ needs and preferences together with them to offer a suitable investment solution.”
Stuart Brookes, joint managing director at London-based investment manager Hargreave Hale, also expressed commitment to the smaller end of the market.
He said: “When industry dynamics are forcing some of our competitors to scale back the services offered to smaller clients, we are fully committed to providing bespoke investment management solutions regardless of portfolio size.
“Quality client service comes first, and we recognise that many smaller clients have the potential to grow assets substantially over their lifetimes with good financial planning.”
Chris Mayo, investment director of Wellian Investment Solutions, urged advisers to reconsider the benefits of outsourcing with model portfolios in light of Brewin Dolphin’s decision.
Mr Mayo said: “There are clients who will be well serviced by a bespoke solution. However, the majority will find they are well suited to a model portfolio for many reasons, such as cost, control and compliance.”
Adviser view
Graham Cross, chief executive of London-based Helm Godfrey, said: “I agree with Mark Rushton. We offer a service to those clients who recognise the value in having guidance from a financial planner. It is not so much about the client’s wealth but about his understanding of where we add value.”
