When Charlotte Ransom retired after spending 20 years at Goldman Sachs, she was unwilling to entrust her life savings in the hands of any wealth manager.
This is what prompted her to co-found Netwealth Investments in 2015, a UK-based discretionary wealth manager.
She says: “When I left and retired from Goldman I was thinking about a private wealth manager for my own wealth; I knew too much to want to give my money to anybody else.
“Equally I did not want to manage it myself. That was the thing which started sowing the seeds for [Netwealth] and I thought, I am sure this could be done better if we started from the beginning,” adds Ms Ransom.
Originally a linguist, Ms Ransom was lured into the industry after she felt disgruntled at how little her languages mattered to the types of profession she thought she wanted to pursue.
Something else that inspired Ms Ransom to pursue a banking career was the fact that several of her male friends were attending Milkround networking events.
“So I decided I would go along to some as well and find out more. I became more and more intrigued by what that had to offer.”
Ms Ransom explains that Netwealth caters to both the affluent and high net worth community. The minimum level of capital required to invest is £50,000
Netwealth offers seven portfolios in three currencies: sterling, euro, and US dollar.
Ms Ransom says Netwealth is able to offer clients advice if they need it, but a lot of the communication is done with the use of technology.
The team includes client advisers and portfolio managers. Some of them have spent several years at private banks and financial institutions including UBS, Schroders and Julius Baer.
While technology forms a key part of the wealth manager’s proposition, Ms Ransom insists it is not a robo-adviser.
“We are not offering advice through our technology, nor are we robotically providing asset allocation,” she adds.
She cites Netwealth’s Network proposition as a key method in which the manager differentiates itself in a crowded marketplace.
To explain how it works, she uses the example of how if a client investing £500,000 or above invites somebody in their network, then the client and the person being invited both face the lowest fee of 0.35 per cent.
If the client is investing between £50,000-£250,000, the client pays a higher fee of 0.65 per cent.
Ms Ransom says: “Let’s say you came into that with £150,000 cash saved into an Isa, and you were to invite your spouse into your network and he had £150,000 of Isas savings, together you have got £300,000 and you both drop onto the middle fee of 0.5 per cent.”
She adds that if the client were to then invite a parent who has £200,000 saved into their pension, the network has £500,0000, meaning everybody in the network now faces the lower fee.