Sanlam UK Showcase October 2010

Report
PRINCIPAL
AN OVERVIEW BY
HUGH TITCOMB
CHIEF EXECUTIVE OFFICER
Principal - A Summary
●
A leading discretionary portfolio management specialist
●
Founded in 1987
●
90 employees: 30 Investment Managers
●
Providing investment management services to:
i. Private individuals
ii. Trusts
iii. Pension funds
iv. Charities
v. Institutions
●
Acquired by the Sanlam Group in 2008
●
Authorised and regulated by the Financial Services Authority
Principal - Service Proposition
Private Client Division
Retail Investment
Management Division
Institutional Division
• Distribution via IFAs and direct
• IFA partnerships / joint ventures
• Sanlam Group mandates
• Sales team / asset gatherers
• Model portfolios
• External mandates
• Cross selling
• Use of in-house and third party
platforms
• Wealth management
opportunity
• Distribution via SUK sales team
Shared services
•Common asset allocation / stock / fund selection processes
•Common compliance, finance and operational support
Assets Under Management: 2009 – 2010 (£m)
1200
1000
800
600
400
Dec 08
Jun 09
Dec 09
Jun 10
Sept 10
Wealth Management - Strategic Rationale
● Increasing requirement for individual ownership of financial affairs.
● Tarnished reputation of some existing service providers.
● Poor investment/advice experience suffered by some in recent past.
● RDR will result in reduced number of financial advisors – but
increase the opportunity for those remaining.
● Estimated market size (UK)
 Affluent (£100k+)
1.8m+
 HNW (£500m+)
500,000+
 UHNW (£5m+)
150,000+
Wealth Management Proposition
Investment Management
-
Pensions
Other wrapped monies
Taxable portfolios
Execution only
Private equity/property
investment
 Estate planning
 Trust advice/structures
Holistic, integrated
financial solutions
Banking
-
 Tax planning
Client
Debt management advice
C/F advice
Credit facilities
Deposits/FX
 Philanthropy
Protection products
- Life cover
- Critical illness
- Health
UK Wealth Management – competitor
landscape
Wealth Management Proposition – Sanlam UK
In-House
Out-Sourced
● Investment Management
● Banking/credit facilities.
● Protection products.
- Pension monies incl drawdown
portfolios;
● Access to bespoke/club
- Other wrapped monies;
investment opportunities eg
- Taxable portfolios incorporating
CGT mgt.
private equity/property
- Execution only.
Client
● C/F advice.
● Tax planning.
● Trust structures.
● Estate planning.
● Offshore UK booking
centres.
● Trust advice.
● Debt management advice.
Service Model
● Fee based.
● Relationship, client centric
approach based on trust and
quality service.
Target market
• HNW with investable assets of £500k+ or income of £150k+ pa.
• Affluent with investable assets of £100k+
• Sanlam’s offshore private clients.
investment.
Critical Success Factors
●
●
●
●
People

Strong relationship management capabilities;

Strong business development/distribution capabilities;

Experienced and credible;

Appropriate incentive/retention mechanisms.
Service offering

Quality and trusted products and service - offering value for money;

Robust and reliable investment performance;

Transparent pricing.
Operational

Service excellence;

Systems capability including consolidated reporting.
Communication/positioning

Avoiding concerns amongst existing IFA introducers re “encroaching on their
patch”.

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