Brooks Macdonald International is one of many investment management services provider you’ll encounter as an investor. They serve professional advisers, trustees, and private clients all around the world from their offices in the Channel Islands and the Isle of Man. Their strength is in offering individualized, risk-managed investing strategies, whether those strategies involve multiple assets or just one.
In addition to traditional investment management, Brooks Macdonald International also provides comprehensive financial planning services. They put an emphasis on pensions and efficient structuring solutions as they aid private clients with wealth and investment related difficulties.
The solutions provided by Brooks Macdonald International can be accessed by clients in a variety of ways, including pensions, trusts, and insurance products. Such a wide variety of choices guarantees that people can pick the best framework for their own needs and goals.
Brooks Macdonald International’s mission is to provide individualized solutions for their clients by leveraging their combined investment management and financial planning experience.
Let’s find out the international investment management services and Brooks Macdonald funds it offers. Hopefully at the end of this Brooks Macdonald review, you’ll be able to see clearer whether it suits your needs. And, understand how Brooks Macdonald International can support your offshore wealth management strategy.
If you have any questions or want to invest as an expat or high-net-worth individual, you can email me (advice@adamfayed.com) or use these contact options.
Brooks Macdonald International Services
The services provided are made to accommodate various clients, from novices and first-timers to more seasoned investors who would rather not manage their own portfolios.
International Bespoke Portfolio Service
Clients of Brooks Macdonald can take advantage of a portfolio designed just for them by using the firm’s International Bespoke Portfolio Service. The investor’s goals, tax situation, and comfort level with risk are all taken into account while providing this service.
Portfolios can be held in different currencies, including US dollars, British pounds sterling, and Euros. On request, Brooks Macdonald International can also accept payment in alternative currencies.
Several distinguishing characteristics make the Bespoke Portfolio Service stand out as an all-inclusive investment option. For starters, it is based on Brooks Macdonald’s core investment procedure, which guarantees a unified strategy for all portfolios. Investors can diversify their portfolios because of the client’s access to numerous asset classes.
Moreover, three different active portfolio management strategies are provided so that customers can find one that fits their risk tolerance and desired rate of return.
The International Bespoke Portfolio Service places a premium on adaptability, allowing customers to spend in increments that best suit their needs. The service places a premium on frequent, one-on-one communication between the adviser, client, and portfolio manager, and offers annual meetings between the three parties. Clients can expect regular and thorough updates on the status of their portfolio.
Within the service, transparency is highly valued, and fees are organized in an open and clear fashion. Transactions within the portfolio can be executed quickly and accurately thanks to institutional dealing.
International Managed Portfolio Service
Clients can choose from six distinct portfolios, each geared to a different investing strategy, as part of the International Managed Portfolio Service. Each investment in these portfolios has been hand-picked to fit the strategy.
The service takes advantage of numerous vehicles, including offshore funds, OEICs, and ETFs, to invest in an array of assets. This approach ensures the creation of well-diversified portfolios that meet the predefined risk criteria.
The International Managed Portfolio Service is available in both Euros and US Dollars.
International MPS Fixed Interest
The International MPS Fixed Interest portfolio is a low-risk investment strategy that aims to preserve and grow wealth by purchasing fixed interest assets. The fixed income assets in this portfolio span from investment grade to developing market to high yield. It has no equity exposure and only cash exposure outside of fixed interest. This technique is suitable for long-term investments of more than three years’ duration. The portfolio can be purchased in British pounds (£).
International MPS Defensive
The low-risk International MPS Defensive portfolio is designed to preserve capital and generate returns in excess of cash. It invests mostly in safe assets like cash and bonds and only partially in growing assets like stocks and real estate. Between 10 and 30 percent equity exposure is anticipated. This approach targets long-term returns that exceed inflation over more than three years. The portfolio can also be acquired in British pounds.
International MPS Cautious Balanced
To preserve wealth and generate modest returns over the long term, the International MPS Cautious Balanced Portfolio takes a moderate risk profile. This portfolio aims for stability and growth through a mix of stable and growing investments. It keeps its equity exposure between 30 and 55 percent. This approach aims for long-term returns that exceed inflation by 2%. It is suitable for investment horizons of more than five years.
British pounds, Euros, and US dollars can all be traded in the portfolio.
International MPS Balanced
The International MPS Balanced Portfolio is a medium-risk investment option since it aims to give some capital growth while protecting from the full volatility of the equity market. This portfolio favors growing assets like shares and property over stable ones like fixed interest instruments.
It is anticipated that the equity exposure will fall somewhere between 55 and 75 percent. This strategy seeks long-term profits that exceed inflation by 3 percent.
British pounds, Euros, and US dollars can all be traded in the portfolio.
International MPS Growth
Investors who can stomach a higher level of risk and are intent on maximizing their capital gains might consider the International MPS High Growth portfolio. It exposes investors to significant levels of equity market risk in exchange for providing substantial participation in growth assets like shares, property, and alternative asset classes.
The portfolio will be heavily weighted toward growth assets, with a lesser portion invested in more secure options like fixed rate securities. The expected equity exposure is between 75 and 95 percent.
Investors with a horizon of more than five years and a return goal of at least 4 percent per year over inflation might consider this approach.
Currency options for the International MPS Growth portfolio include pounds, euros, and USD.
International MPS High Growth
The International MPS High Growth portfolio provides a high-risk capital growth approach with an eye toward long-term growth at the expense of significant exposure to stock market volatility. It’s set up to have what could be a more concentrated portfolio, with a focus on growth assets like stocks.
This portfolio is projected to have an equity exposure of 90 percent or higher. This approach aims to outperform inflation by 5 percent over five years. The International MPS High Growth Portfolio can be purchased in pounds.
ESG Investment
To make the most of the comprehensive due diligence and monitoring tools already in place, the Responsible Investment Service at Brooks Macdonald International is fully integrated into the firm’s Centralized Investment Process. By incorporating it into the company’s infrastructure, the service will be subject to the same rigorous monitoring and analysis as the firm’s other investment offerings.
Clients of the Responsible Investment Service can pick between two unique tactics, “Advance” and “Avoid,” both of which are included in the service. Both approaches are actively managed and provide a multi-asset investment solution.
The Advance investment approach prioritizes companies that either contribute to solving sustainability problems or show excellent Environmental, Social, and Governance (ESG) policies and practices. By taking this tack, investors can back businesses that put an emphasis on ethics and the environment without sacrificing financial returns.
Companies producing illegal goods like weapons, tobacco, alcohol, porn, and gambling are targeted by the Avoid strategy, which seeks to limit risk. Clients can bring their portfolios into line with their ethical choices and remove companies that are judged incongruous with their principles by staying away from investments in these areas.
Corporate Bond Strategy
The company’s Corporate Bond Strategy is geared toward providing bondholders with a diversified portfolio of single-A and triple-B rated bonds. This approach seeks to provide positive total returns by balancing income creation with security and liquidity. Income can be taken out or reinvested within the plan, depending on the investor’s preference.
The Corporate Bond Strategy can be executed in a number of different currencies (GBP, EUR, USD, and more upon request). The strategy’s primary goal is to satisfy investor expectations rather than to imitate the performance of any particular benchmark.
The Corporate Bond Strategy aims to provide its clients with a number of benefits, including but not limited to: a focus on investment-grade corporate debt; a diversified portfolio of corporate bonds; a target yield of 4% to 6%; the ability to phase investments; a high level of personalized communication; annual meetings with professional advisers and clients; transparent fees with institutional dealing; and a low Total Expense Ratio.
Direct Equity Strategy
Brooks Macdonald International’s Direct Equity Strategy is for building a diversified portfolio with a focus on equity markets in the UK, the US, and Europe. This approach targets large-cap stocks in an effort to give investors a less volatile investment choice that can be used to achieve intermediate and long-term equity investing goals. Investors who want to hedge against inflation can benefit greatly from including the strategy into their portfolio.
The Direct Equity Strategy is available in different currencies, including GBP, EUR, and USD. Alternate currency alternatives are available and can be supplied if requested.
The Direct Equity Strategy focuses on higher market capitalization companies and includes a portfolio of direct stocks from the UK, the US, and Europe. It also allows for a substantial amount of one-on-one communication between the financial advisor and client by facilitating both gradual investment and yearly meetings.
Strategic Income Strategy
To meet the needs of investors for safety, liquidity, growth, and income, the firm offers the Strategic Income Strategy, which is a combination of the Corporate Bond and Direct Equity strategies. The approach targets long-term capital appreciation through the purchase of a diversified portfolio of fixed interest and equity securities.
The Strategic Income Strategy can be accessed by clients in either euros or US dollars. The approach has clear costs with institutional dealing, and clients are kept up-to-date with regular and thorough reports on their holdings.
Brooks Macdonald International Investment Solutions
International Investment Funds
The firm caters to investors who place a premium on goals-based investing with three different Fixed Income International Investment Funds (IIFs).
A stringent bond-selection procedure is used to build these funds, with a focus on finding reliable issuers, keeping an eye on individual credit trends, and zeroing in on competitively priced securities.
In addition, securities of varying issuers and capital ranking are compared to one another both relative and absolutely in terms of valuation. A pragmatic portfolio creation process helps facilitate this action by accounting for things like interest rate and term structure levels, relative valuation of corporate bonds, and the requirement for diversification.
High Income Fund
The company’s High Income Fund invests in diversified fixed-interest assets to create high income. The fund aims to deliver dividends above short-term sterling interest rates. Unless bond prices rise, this investment strategy may gradually lower share capital value.
The fund owns various securities to limit exposure to non-government bond issues. The fund may also invest heavily in bank deposits and money market products. It can buy non-sterling securities as well.
The High Income Fund is suitable for investors who seek moderate risk with some capital value and income return variations. This product requires a £5,000 commitment, up to 2% upfront fee, and a 0.875% annual management charge. Sterling is the fund’s base currency.
Sterling Bond Fund
The Sterling Bond Fund invests in sterling fixed interest securities to provide stable income. The fund invests in gross-interest-paying UK non-resident securities. It invests primarily in sterling fixed interest securities issued by governments, local bodies, public utilities, and enterprises. The fund may purchase money market instruments or bank deposits.
Sterling Bond Fund is low to medium risk. It’s appropriate for conservative investors who comprehend capital value and income return volatility.
The fund requires the same minimum as the aforementioned fund, plus the same annual and upfront charges. It is also denominated in sterling.
Always remember that investment values and income might fluctuate, and returns are not guaranteed. Exchange rates can affect investment value. Past performance cannot predict future results.
Euro High Income Fund
Brooks Macdonald’s euro high income fund invests in numerous euro-denominated fixed interest instruments to generate continuous and high income. Investment policy supports dividend payouts above short-term euro interest rates. Except when bond prices are rising, this method may gradually lower share capital value as well.
The fund holds different securities to limit its exposure to individual bond issues, except government securities. The fund may invest heavily in bank deposits and money market instruments. It can also buy non-euro securities.
Low to medium risk makes the fund suited for investors wanting moderate risk exposure. The fund balances risk and prospective returns despite capital value and income return variations.
The same investment minimum and annual charge apply.
International Multi Strategy Funds
The company offers a selection of five Multi Strategy Funds (MSFs) that are specifically designed to align with different investor risk profiles. The MSFs are strategically diversified across various asset classes and securities, including international and thematic equities, fixed income, and alternative investments, all within the defined mandate parameters.
Cautious Balanced Strategy
The Cautious Balanced Strategy is a well-thought-out plan for investing that prioritizes safety over high returns. To do this, it diversifies its holdings among a number of investment vehicles, with a focus on fixed interest instruments. Investors with a five-year horizon or longer would benefit most from this plan.
The Cautious Balanced Strategy is a low to moderate risk investment approach. It’s made for those who would rather play it safe, knowing that their capital and income returns could see some swings.
The entry level for this strategy is £10,000, or its equivalent in the investor’s preferred currency, for the B share class. The A share class requires a minimum investment of £1 million.
The B shares pay 1% for annual management, while the A shares pay 0.5%. Unlike the A shares, the B share class has an initial charge of up to 2%.
The Fund’s performance may be measured against a constant benchmark and foreign exchange risk can be controlled by making Sterling the base currency.
Balanced Strategy
The Balanced Strategy diversifies exposure among growth-focused funds to grow money. The strategy balances fixed-interest securities with growth to stabilize the portfolio. This fund is intended for investors with a five- to ten-year investment horizon. The Balanced Strategy allows investors to profit from the growth potential of certain asset classes while retaining stability with fixed interest instruments.
It has the same investment minimums plus annual and upfront charges as the Cautious Balanced Strategy, except the risk for this investing option is a notch higher at medium risk level.
Growth Strategy
Brooks Macdonald International’s Growth Strategy helps investors mitigate risk by spreading their holdings across multiple asset classes, geographies, and currencies. Investors who can commit at least five years, and preferably 10, to their capital and are looking for significant growth over the long term may consider this approach.
In terms of risk, the Growth Strategy falls into the medium to high category. It shares the same investment minimums and annual and upfront charges as the two previously mentioned options.
High Growth Strategy
The High Growth Strategy allocates capital to a collection of funds that span numerous asset classes, with equities serving as the primary holding. This method is ideal for long-term investors (five to ten years) wanting higher growth potential.
The High Growth Strategy presents the chance for greater long-term returns for investors albeit at a greater potential for financial loss too compared to safer investing choices.
Investment minimums and expenses, both annual and upfront, for the High Growth Strategy are the same as those for the other plans we’ve discussed.
US$ Growth Strategy
The US$ Growth Strategy is tailored to US dollar-based clients who are interested in sustained appreciation of their wealth. The strategy entails putting money into a number of different funds, with a focus on those denominated in US dollars. This strategy is consistent with the investment preferences of those working with US dollars and is designed to take advantage of openings in the US market.
This is recommended for a minimum investment duration of five to 10 years. Risk is always there while making financial decisions. Due to the increased possibility of capital loss, the US Dollar Growth Strategy is rated as medium to high risk.
A minimum investment of £10,000 (or its foreign currency equivalent) is required for the B share class in order to take part in the US$ Growth Strategy. Professional administration and control of the B shares’ investments are provided for an annual management charge of 1%. There is also a one-time fee of up to 2%.
Treasury and Cash Interest Rates
The CASS Oversight Committee at Brooks Macdonald International works in tandem with the Financial Risk Committee to choose, appoint, and periodically review financial institutions where client cash balances are placed. The committee monitors the flow of client funds to make sure that only authorized organizations are receiving them. Financial institutions are evaluated based on their creditworthiness, financial stability, and business practices.
The current interest rate offered by Brooks Macdonald for both domestic and international cash balances in client accounts is 0.75%. Client deposits of Brooks Macdonald’s UK operation are protected up to £85,000 by the Financial Services Compensation Scheme per person, per authorized institution.
Although Brooks Macdonald is neither a member of the Jersey Bank Depositors Compensation Scheme or the Guernsey Banking Deposit Compensation Scheme (together known as DCS), it does take steps to protect its clients’ funds by spreading them out over other banks. The same goes for the Jersey and Guernsey branches of these well-known UK High Street banks. Client funds are safer and more secure thanks to this technique of diversification.
Please note that the DCS does not provide compensation to Brooks Macdonald’s Channel Islands clients.
How can I invest with Brooks Macdonald International?
There are a number of ways for customers to invest with Brooks Macdonald International, such as trusts and foundations, which are corporate entities, and direct investment, investment platforms, pension schemes, insurance wrappers, and other similar vehicles. The Adviser Solutions staff is available to help customers as they fill out their applications.
The first step is for the team to send the customer an application pack, which must be returned together with identification and address verification. The Adviser Solutions staff will walk new customers through the account opening process and check that all necessary paperwork is completed accurately and in accordance with regulations.
After a customer has completed the application procedure, they will be given a website login that will provide them access to online investment values at any time.
In addition, Brooks Macdonald International works with a number of life companies and pension providers to assist financial advisors in providing their clients with optimal investment structures. If a client has a provider in mind that isn’t on the list, the organization is able to add new product provider linkages.
Bottom Line
Brooks Macdonald has built a strong brand reputation in the investment industry, known for its traditional approach to outperforming the markets — but at a heftier price tag. The cost of investing with Brooks Macdonald International may not be commensurate with the returns it generates for its clients.
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