Supporting the head of a family with long-term investment portfolio building

Ms James’s Family were due to receive a large capital sum following the sale of their real estate business. She wished to engage with the team on a number of matters including advice on her entry to the UK (from North America) and establishing appropriate planning /structuring in support of the remittance basis of tax, as well as other related matters.

Client’s Goals

• Improve their understanding of investment markets
• Build a long-term investment portfolio to achieve their objectives of growing the asset base and fund ongoing living expenses
• Sustain an investment portfolio that can satisfy both the North American and UK tax circumstances  and requirements
• Shape a clear governance structure from an investment perspective, including monitoring and performance assessment

Our Recommendations

• Our Law team collaborated closely with the client’s existing advisers, including her Chartered Professional Accountants and Lawyers in North America, to ensure local advice was considered
• Our US and UK teams worked together to establish the optimal custody of assets
• To satisfy the requirements to keep the assets in custody in North America and advice received from the external partners, our Corporate Services team in Jersey established a company structure to hold the investments
• We reviewed the client’s long-term objectives and risk appetite and subsequently drew up an investment proposal for the portfolio

Outcomes (To Date)

• Portfolio held in custody in North America, managed from the UK
• Multi-asset mandate tailored to their investment objectives, suitability and restrictions. Global portfolio reflecting their international presence and liabilities
• Account mapping that allows segregation of capital and income. This avoids creating ‘mixed funds’ which can lead to unfavourable tax consequences when remitting to the UK
• Evolution (progress) of the family’s understanding of markets
• The client’s existing professional relationships are maintained

Disclaimer: Please note, all case studies have been carefully anonymised. Although scenarios are based on real life events they have been fictionalised and are an amalgamation of client experiences. All names, locations and occupations have been replaced with pseudonyms.

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