How to handle an inherited client

This is the view of Duncan Stratford, Canaccord Genuity's Wealth Management's UK managing director, who said one of the challenges of managing money was helping people who suddenly find themselves beneficiaries of a portfolio. 

Over time, many older clients - mostly female - have inherited portfolios their husbands used to run, and who may never have been involved with investing.

At the time, obviously there is a "big educational piece" and support when it comes to this vulnerable circumstance, although Stratford says not every widow will necessarily be, or remain, 'vulnerable'.

It’s important that both spouses are involved in conversations concerning their finances.Duncan Stratford, CGWM

He has one particular client of 100 who calls him regularly to discuss the investment strategy on the portfolio she inherited in her early 80s. 

"She's really clued up now", he said. 

According to Stratford, reassurance is important at what can be a very traumatic time for clients.

He explained: "We often come up against this situation with the customers of our intermediary clients – a bereaved wife might find herself left holding the investment portfolio with no previous involvement in decisions about how and why investments were chosen or agreed.

"And at that time, we can step in to answer any questions which might help educate, support and reassure."

Education and inclusion

Stratford said to avoid having clients end up in this situation, where one knows all about investing and the other does not even know a portfolio exists, is to make sure that conversations are inclusive from the start. 

He said: "We approach our client relationships with the financial considerations relative to their life stages. We always treat clients holistically.

"It’s important that both spouses are involved in conversations concerning their finances and we try and engender that mind set from early on in our relationships with clients."

Divorce and bereavement are good examples of how the wealth advisory industry can increase the support that is given to clients, he added, whether this is "educating them, supporting them and/or hand-holding at times of greater need".

"We place great value in meeting clients in person and being prepared to travel to their homes where they often feel more comfortable."

Big enough to matter, small enough to care

He has described CGWM as "big enough to matter, small enough to care", and says part of this is that everyone is "very hands on with the business".

He told FT Adviser: "I still have clients that I have looked after for well over two decades. We live and breathe traditional relationship management values, and this is an inherent part of our culture.

"Our set up is very modern, but our values are very traditional."

Over recent years, as reported by FT Adviser, the company has been involved in several mergers, acquisitions and restructures as it grows its UK-based operations.

Management doors are always open.

Stratford added: "We now have a regional leadership structure covering the whole country and we still think that visiting offices means we can be there to meet clients and colleagues all the time.

"A big part of the reason I do this is to ensure our culture is cohesive. Our approach ensures the longevity of client relationships and the longevity of our staff. We are rightly proud of our very low attrition rate."

But he said it was crucial to "hold on to the small boutique feel".

"Management doors are always open – we pride ourselves on making quick pragmatic decisions that serve the clients’ best interest.

"Our regional offices plug into the benefits of our wider infrastructure and culture, but we are happy, keen even, for them to have their own nuanced identity driven by their local leadership and team."

What advisers want from a DFM

Stratford said this kind of service model was also important when advisers consider which discretionary fund manager to put their clients with.

He said: "They want a trusted adviser, who operates transparently and one with a track record of good performance. The ability to offer all the products and services they might need in one place and for those services to be competitively priced.

"We have recently reviewed all our model portfolios, so they are appropriately risk-rated.

"This makes it easy for intermediaries and their clients to navigate the options and find an investment portfolio that suits their requirements and desired outcomes.

"The end game is always considered and it’s only by having this holistic view can the right approach be selected, and the right outcome achieved."

simoney.kyriakou@ft.com