Williams describes the ethos of LGT Vestra as “client centric” and while she admits, quite rightly, that everyone will say that, she’s adamant the firm does really get close to clients when providing bespoke portfolios with “no jargon and no BS”.
Entrepreneurial spirit
But the relationship goes beyond just managing clients’ investment portfolios, says Williams, to take in wider considerations such as what it means to have been bestowed with great wealth and the philosophy around it all.
“We have spent time considering the philosophical aspects of investing and have produced essays and invited philosophers to engage clients in deeper debates about what matters in their lives.
“Numbers are numbers and clients appreciate them, but after a while they get a little bit dull for clients; they like to explore what is the meaning or purpose of their wealth.”
A significant chunk of the firm’s client base are entrepreneurs, and LGT Vestra’s service to such clients includes aiding the transition from business owner to investor. This involves patiently understanding the issues entrepreneurs face in ceding control over their assets and diversifying risk.
“We have engaged in a lot of programmes to encourage that insight. We are the UK headline sponsor of EY’s Entrepreneur of the Year and we have a dedicated website for entrepreneurs. It is a big thing for us, partly because we were a start-up 10 years ago.”
With regard to managing investments, LGT Vestra offers a model portfolio service for smaller clients but Williams oversees the private office offering, which is an outsourced family office solution incorporating financial organisation and management of personal finances.
There is no explicit minimum investment level for clients, but at the UHNW level, it generally caters for those with at least £50m.
Williams believes three factors make LGT Vestra a success from an investment stand point. First, the boutique premium, which enables it to make immediate decisions that do not get watered down by hierarchical structures. “We are not moving a supertanker here,” she says.
Second, the firm is made up of conviction investors. “We don’t hug benchmarks and are not afraid of moving in and out,” states Williams. “For example, we do not have anything in Latin America and we are happy to be out.”
Finally, she claims investing runs through the firm’s blood. As such, client advisers sit on the investment committee and members of the investment team meet clients for everyone to gain a better understanding of both sides.
“Nothing focuses the mind more than when you have to sit down with the client and justify your decisions,” says Williams.
Strong resolve
LGT Vestra is currently a big believer in the tech revolution affecting how people communicate, shop and work. It is particularly fond of stocks that track the changing economy, such as those that exploit the power of brands and the internet revolution.
The house view is of a reasonably benign economic environment with strong global growth and that the world seems to be coping well with interest rate normalisation. The firm is overweight equities, with a 64% weighting across portfolios, and the rest made up of fixed income and alternatives.
“We took some profits out of US equities before the summer but have been overweight for a while as we see that is where the technological revolution is.
“At the moment, it is not the cheapest market to be in but the risk of not being invested is probably higher than that of being invested at these levels.”
The UK, however, is not currently an area of excitement for the firm but Japan has piqued interest, given the reform under way there and the attractive relative valuation.
The fixed-income proportions of the portfolios are allocated through direct holdings in sovereign credit, supplemented with selective actively managed investment-grade and strategic bond funds.
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