Making offshore investing easy

What makes your business distinctive?

While we are a global business, the core of our operations are based in the Isle of Man and our clients, whether domiciled in South Africa or any of the 100+ jurisdictions we currently serve, take great comfort in the fact that their assets are held in what is regarded as a politically stable jurisdiction, internationally respected for its progressive regulation and strong governance. Within our discretionary investment management business, our team of specialist investment managers and analysts currently look after approximately £800-million of assets under management. This team works consistently to maximise value for clients through expertise and continual research.

At Capital International, our goal is to provide investors with all the advantages of investing offshore, without the complexity. We provide our clients a triad of benefits: a highly qualified team of expert invest managers, access to a strong jurisdiction which is complemented by local support offered by our team in South Africa.

Who is your ideal client and who are not your clients?

We deal with financial advisors, wealth managers, intermediaries and trustees. Our ideal clients are South African investors looking to maximise the allocation of their wealth offshore held in a variety of structures where all are managed and administered centrally. Our clients are limited to those who adhere to our minimum investment amount of £50 000 or currency equivalent. Furthermore, any clients who want to trade securities and FX daily to earn an income would be better served with a different investment platform provider.  

What role do you believe DFMs play in improving client outcomes?

I would point to three key areas: expertise, reach and monitoring. Expertise comes in the form of highly qualified professional investment managers focused on improving client outcomes and have decades of experience in managing client wealth. Reach relates to the international  outlook professional investment managers have. They can research opportunities internationally and have access to institutional terms and investments not available to individual investors. Finally, monitoring alludes to the constant analysis and research the team undertakes daily. Constantly monitoring the markets allows our team to be quicker to react to upside and downside risks, giving them a “jump start” on achieving better outcomes.

Some argue DFMs are just another layer of costs for clients.

There is no hiding that a DFM costs money. However, should the DFM demonstrate value for their professional expertise, the service they provide, as well as through the investment performance they deliver, then that layer of cost is justified in the client’s peace of mind. It’s worth remembering that it can cost a lot more to make the wrong decision.

Some have the view that DFMs should have performance tables like fund managers. Your perspective?

Performance tables have their place and operate well for funds because there are sectors and classifications that make it easy to make like-for-like comparisons. However, DFMs come in different shapes and sizes which can make it difficult to draw valid comparisons. Performance is important but so are service, local support, access to an investment team and flexibility to adapt to change.

What are the biggest challenges you see facing DFMs in the next decade?

There are several challenges on the horizon. It’s undoubtedly a competitive market and standing out is difficult, especially when faced with ever-tightening regulations. Technology is also important; it’s crucial that DFMs stay ahead of the game in harnessing automation to increase efficiencies, allowing them to focus on areas that have the greatest impact.