According to figures published by the BBC, an estimated 5.5 million British people live permanently abroad. Equating to almost one in ten of the UK population, it is likely that many of our readers will know people or have clients who have moved overseas. It is with this in mind and following recent questions from within our adviser community, that we thought it would be useful to provide a brief introduction to our international offices, from where we are able to assist many of these individuals. At Quilter Cheviot we are well known for our work in the UK however, this experience extends further, across Europe and much of the world. Our Jersey, Dublin and Dubai offices add knowledge and capability to onshore expertise, some of which we will cover here.
Established almost 50 years ago and with assets under management which make us the largest Channel Islands discretionary fund manager, our Jersey office has a long history in working with investors in a wide range of jurisdictions. The island’s finance industry employs a significant percentage of the population and in addition to the provision of investment offerings, it is a leading provider of professional fiduciary and other services. Through our team’s industry connections, they manage client portfolios within a wide range of structures, including trusts, companies, foundations, pensions and offshore portfolio bonds. Client circumstances vary and can be complex in nature but the team’s expertise and our experience in dealing with investors internationally, sees us well placed to assist with portfolio services in many cases. Tax considerations can be a driver, leading clients to hold their assets in a certain manner but succession planning and other motivations also often come into play. Our services are similar to those found in our UK offices however, as expected, you will find us with a greater number of US dollar and Euro portfolios. Services are not limited to the ultra-wealthy and whilst currently overseas, many of our clients will return to live in the UK in future.
Our Jersey office’s global view, understanding of the varied circumstances of our clients and knowledge built on years of experience provides a solid foundation for long-term relationships. One of our oldest clients is prime example of this. We have just seen the wealth transition to the second generation of the family and, whilst not all the beneficiaries still reside in South Africa, we, and their trust company have been able to provide continuity of relationship to all parties. Regular visits to meet with the original settlor over the years and subsequently his beneficiaries, has undoubtedly cemented this role with the family’s wealth planning for years to come. The original trust was recently split to form individual trusts for each of the beneficiaries. Each investment portfolio now looks at the individual needs of those connected to the connected structure, with different levels of investment objective accommodated through tailoring of the way in which the money is invested.
These clients, as with others, still have assets in South Africa, including property, business interests or investment in companies listed on the Johannesburg Stock Exchange. The importance of diversification is however key for their overall wealth planning, not only in terms of asset class but where the money is held and in which currency. The local stock exchange has many world class constituents but an overseas manager such as Quilter Cheviot will offer exposure to global markets and in a more stable ‘hard’ currency.
With its own long history, our Dublin office opened in 2003, with a focus on serving investors and advisers across Ireland and Europe. The UK’s exit from the European Union saw us seek to build further on our ability to serve clients across the EU. Our Dublin business was incorporated as Quilter Cheviot Europe Limited and in July 2019 it obtained authorisation from the Central Bank of Ireland as a MiFID II investment firm. The team provides investment management services to private clients, their pensions, companies, and charities. Comprising of an established team of investment managers, business development and administrative professionals with a track record of successfully working with clients and their advisers.
In 2019 the UN reported that 1.3 million people born in the UK live in EU countries, with Spain being the most popular at 302,000, along with France and Portugal. Our ability to continue to look after many of these clients from our Dublin office together with the existing Irish client base has been of real benefit to many investors. The team’s familiarity with varying circumstances and product types remains a key part in being able to provide investment solutions, as does our regulatory status.
One of our newest offices, located in Dubai, opened in 2016 and adds to our international footprint. Operating from the Dubai International Financial Centre and licensed by the DFSA, our permanent presence makes us unique amongst our peers. The UAE is home to over 50,000 British nationals and with a largely expatriate population our representation makes us well placed to assist those that have moved to the Middle East. Unlike our other offices, we do not manage or hold client money locally. The locally based team, who combined have lived in the country for 50 years, are able to help with meeting clients and opening accounts with whichever Quilter Cheviot office is most appropriate. Our experience often sees us working with clients who will move between various countries, which has allowed us to build up an extensive international network of financial advisers, tax advisers and other professional providers. These contacts can not only be of benefit to our clients but have also assisted our advisers in the UK where they are unable to advise in certain circumstances.
Our ability to offer portfolio management services within different asset holdings vehicles and in multiple currencies, frequently benefits clients. A prime example of this is seen with one of our clients, who after selling out of his business in Dubai, received dollars but will spend his retirement in the UAE, UK and Europe, requiring him to hold three currencies. He also holds money within pensions and offshore bonds. Through third-party advice, portfolios may later be moved into other structures or trusts to maximise tax efficiency and accommodate succession planning wishes. Our comprehensive service offering and ability to take a holistic view is of great benefit to him and his family.
The choice of which office each client appoints can be dictated by many factors, whether tax, regulatory or otherwise. Wherever possible we will try to accommodate client preference, allowing them to remain with existing Quilter Cheviot investment managers where they wish to do so. We would encourage you to reach out if you are interested to find out how we can potentially assist your clients.
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