Whilst managing your own assets will save costs the important question is whether your overall return is more likely to be improved by employing experts. Cheap DIY investing does not necessarily equal less expensive over time. The question comes down to whether you have the experience, access to professional research, skill set and time to do it yourself efficiently and are prepared to accept the responsibility. Alongside these crucial points it has been proven time and time again that personal investment biases, especially when managing your own family’s wealth, can have a significant impact on investment returns. Hindsight bias, loss aversion and herd mentality are but a few examples of negative emotional influences that can lead individuals into making financial decisions for reasons other than those led by factual information, potentially diminishing their long-term financial returns. Professional asset managers are less likely to be influenced in the same way and more likely to take an objective view and adhere to the longer term strategic plan than most individuals.

The experience of the senior staff, the investment track record, the services offered and whether they fit your immediate and expected future needs. Also, don’t be afraid to ask for existing client references. They should be readily available on request. Importantly how did you feel when you met the staff? You will need to work closely with them. A strong relationship, understanding and trust are hugely important ingredients for success.

To make sure that the wealth intended to be passed to the next generation is not wasted, it is important to include inheritors early in the planning stage in order to instil the correct values and skill sets. Each family member will have different aspirations, perceptions of and reactions to wealth. Whilst the generation who created the wealth will be rightly proud of their accomplishments, without planning and education the ones who inherit it can take it for granted or feel lost. Once inheritors feel included and unafraid to voice their opinions, they often feel more worthy of the wealth as well as develop a sense of involvement, responsibility and stewardship.

VAR Capital does not hold any funds for investors. We open an investment account in your name, or that of your corporate entity, with one of our extensive range of custodian partners. The custodian is responsible for the safekeeping of your portfolio. This means that the securities are held in your own name at arm’s length from VAR. A Limited Power of Attorney is awarded by you to VAR Capital solely for the required investment management activities, such as trading, and not for the addition or withdrawal of funds from your account. That is purely your decision and under your control. In the unlikely event that the custodian bank is no longer able to meet its obligations and is declared bankrupt, your securities belong to you alone and can never be claimed by administrators. Your securities are not included in the custodian’s estate.