Case Study 4

Client D is an active business owner and entrepreneur. He enjoys being active in following investments. We were able to work with him to advise on a portfolio covering the US, Europe & Asia markets.

In February 2020, in preparation for a meeting with this client, we prepared a stress test to indicate how the portfolio would have held up in previous market corrections. Our analysis indicated that the portfolio should be resilient during a future crisis. We did this exercise in order to have a meaningful discussion with the client about risk & return. 

The performance for the previous year was 12%, which was very good, given the target return of 5-7%. However, the client was looking for a higher return. We explained that in order to reach for a higher return, the client needs to be willing to take more risk which we did not recommend at that time. After the discussion, it was agreed to keep the risk profile as it was. 

It was eerily timed, as only 3 weeks later the market corrected, falling by -33% due to the Covid pandemic. We were pleased to see that the client’s portfolio fell only -7%. At the end of 2020, the global equity market finished the year at +14% and this client’s portfolio was up +13%. We are proud to have achieved 92% of the upside and only 20% of the downside. 

We did not know that a market correction was only 3 weeks away and we did not know that Covid-19 would be the cause of the next correction. However, we do have over 30 years of experience in wealth management and it seemed to us too late in the economic cycle to add more risk. We had the conviction to stand by our prudent approach and smooth out the volatility for our client.

Share This

Related Posts

Case Study 3

Client C has been retired for some years and relies on receiving funds from his portfolios to meet his living requirements. Wealth preservation is therefore important and he also wants to ensure a smooth transition of wealth to his children. As there is a change in his tax status on the horizon, it was timely to consider how his portfolios are held to ensure a smooth succession of wealth and to consider any tax planning which may be suitable.

View Case Study

Case Study 2

This client is a second-generation wealth owner and, being the eldest child of an Asian family, has been tasked with the responsibility of organizing the wealth management & succession plan for the family. The client and her siblings already have children of their own so ensuring a smooth transition to the third generation and beyond is important.

View Case Study

Case Study 1

Family A were not brought up with wealth themselves. They worked hard over many years and were able to create wealth to give them financial security and have since retired. Wealth preservation is important to this family, as they require the funds to provide for their retirement.

View Case Study