One key service the bank has launched is Coutts Club, a platform that allows entrepreneurial clients and businesses to connect. “Coutts Club is often described as a ‘private members club’. It’s for our entrepreneur clients who want to back companies that are growing rapidly but still need investment.
“We have created a platform that allows them to look at a pipeline of small to mid-sized private companies that are growing. They are all British industries and it’s about how we connect them with our clients who are entrepreneurial themselves and have already created wealth within these industries.”
Syed says Coutts often works with its sister bank Natwest, which has a third of all small and medium-sized enterprises banking in the UK, as well as Coutts’ internal network that helps source transactions and connect them to clients.
“But we do not give advice, it’s purely introductory,” he adds. “Connecting the dots for our clients and allowing them to network around common interests is vital and most of the industry is just not up to speed.
“We have an advantage. Historically, the industry has been very product-orientated, whereas we look at the overall relationship.”
Discussing the Coutts approach, Syed outlines the firm’s investment process, its core values and where its opportunities lie. “We combine three areas and call them the ‘FTVs’,” he says.
“Fundamental, meaning what they are in the marketplace; technical, referring to the momentum indicators and assessing how the market is performing; and value, where in the market there is value, in a particular segment or geography.
“We combine them and then decide where to invest. That’s roughly our investment process but underpinning that is always about how we protect capital. Our clients have already generated wealth, thus first and foremost is the preservation of that capital.”
While Coutts has an overarching strategy, Syed emphasises it is all tailored to a client’s risk appetite.
He says diversity is key at the firm. Not only does the firm seek to diversify portfolios and identify the best return for a level of risk, it also employs a team of 90 staff from various backgrounds who contribute overall.
Considering the recent market correction and clients’ needs, he says the team takes a long-term view and does not react to shortterm gyrations.
“We’ve gone through almost a decade- long global stock market rally, with low rates, relatively low inflation and also huge amounts of quantitative easing. That pushed a lot of assets to all-time highs towards the end of last year.”
Global outlook
However, while the correction in February was expected to a certain extent, it all occurred in a short space of time, he adds.
“Our view remains unchanged, which is that global economies are still strong, companies are providing healthy margins, the US continues to do very well – structurally but also in terms of corporate earnings – as does the UK, Europe and Japan.
“Where we think we have taken advantage of the recent correction is that we’ve invested more in the UK market.
“Relative to the other markets we think it’s better value, that sterling will be steady and do well and, as a result, most of where we’ve put our recent investments has been back into the UK market.”
Touching on the FTVs again, Syed stresses that Coutts takes a “tactical view”, which considers potential changes over a three to five-year cycle and over 12 to 18 months – all of which points to “reasonably healthy growth in the UK”.
