The UK’s exit from the European Union was “arguably the catalyst” for London-based Tam Asset Management to open an office on the Balearic island of Mallorca, Lester Petch, European chief executive, told Portfolio Adviser sister publication International Adviser.
Having invested on behalf of European clients for over 15 years, “the group was getting to a stage where having a physical presence on the continent to better serve these interests had long been on the cards”, he added.
So, when Brexit reared its head, “and the subsequent thorny issue of passporting rights for UK asset managers in Europe arose, the decision to set up a dedicated European entity was pretty obvious”, Petch said.
He spoke to IA shortly after it was announced that Tam has formed a partnership with the Federation of European Independent Financial Adviser (Feifa) to promote ESG investing.
‘Apart from its serene beauty, it has superb air travel links’
The choice of Mallorca stemmed from Tam Asset Management’s existing client base.
“We predominately deal with expatriates in our investment services.”
Petch said the firm’s “City of London credentials” and its “conservative approach to risk really resonate” with older expats in Europe.
“Having been registered as passported in Spain on the CNMV [National Securities Market Commission] for 15 years, with a core number of our European clients’ resident in the jurisdiction, it was an easy call.”
The Spanish securities authority also has “excellent English versions of its documentations for this process”, Petch added.
“Why Mallorca specifically? Apart from its serene beauty, it has superb air travel links into Europe, as a whole.”
Tam’s DFM offering focused on intermediaries
Petch describes Tam as a “specialist DFM with a 10-year track record in creating fully actively managed, low risk, multi-manager portfolios for clients – from as little as €1,000 (£908)”.
“Tam’s European range of multi-manager DFM portfolios has historically been focused and tailored to the intermediary or IFA market in Europe, and will continue to do so as we move forward in the region.”
The firm also partners with investors outside of the direct IFA market, “who require a more bespoke proposition for their client portfolio”.
When it comes to fees, Petch said the charges “remain at the lower bound for the industry”.
The annual management charge on Tam’s model portfolio service is 0.25%, rising to 0.5% for its more custom premier range.
The firm also has a range of ESG/ethical and Sharia investment portfolios charged at 0.4% AMC and 0.5%, respectively.
The global fund of fund offering is priced at 0.65% AMC.
Custody and execution are handled by Pershing Securities International, which is domiciled in Ireland.
This combined service is priced at 0.25%, which is in addition to Tam’s AMC costs.
Petch said that there are “very low barriers to entry into Tam’s investment models”.
The firm has “realistic pricing models and a high degree of flexibility when it comes to our interaction with IFAs in Europe”.
The firm’s investment restrictions prevent it from investing in anything that doesn’t offer 100% transparency in liquidity and pricing.
“We maintain the belief that investment managers do not need to drift into illiquid investment vehicle to generate their clients’ solid investment returns,” Petch said.
“Safety and capital preservation remain core pillars to our investment philosophy.”
