Based in the heart of the City of London, Vestra Wealth has over 150 staff, of which 24 are Executive Partners. Each of its investment managers has an average of more than 20 years’ industry experience. Working side by side with wealth planners and client advisers, Vestra Wealth brings the full capabilities of the firm to bear on each client to manage their investment portfolios.
To that end, clients can choose from three portfolio management services provided by Vestra, depending on the extent to which they wish to be involved in the management of the fund portfolio. These three services include: Discretionary Portfolio Management Service (full delegation given over to Vestra Wealth); Advisory Portfolio Management Service (for clients who wish to be involved more in the investment strategy and decision-making process), and Execution-Only, where clients retain full control over their investments.
At the heart of the investment process sits the Investment Committee, which serves to disseminate the macro-led tactical views which each investment manager then uses to construct their clients’ portfolios as per their individual investment needs.
Generating consistent growth in portfolios has been challenging in recent times given the extent of central bank intervention. In order to help its clients maximise total returns, Vestra has structured portfolios to generate income from local currency emerging market debt and selective high-yield bonds, explains Jenny Tozer, investment manager and Chair of the Investment Committee. In addition, portfolios have been structured “to generate capital growth via a core selection of global, high quality dividend paying companies, together with investments in global macro and event driven alternative investments.”
Tozer confirms that equities remains “our asset class of choice”, confirming that the Investment Committee’s preference is for small- and mid-cap US stocks, global “high moat” dividend companies, the Asia Pacific consumption story and selective European export companies. “We remain cautious on Europe, selectively optimistic on the UK and overall cautious on emerging markets ex Asia Pacific in the short term. Japan may well continue its rise, but we remain underweight given the very poor macro economic fundamentals,” says Tozer.
Within fixed income, Vestra remains cautious on all government debt and has begun to reduce its exposure to investment grade and high-yield bonds, except for lower quality, investment grade financials. But as alluded to above, sentiment remains positive on local currency emerging market debt.
One area that Tozer believes could perform well over the next few years is global infrastructures as governments in both developed and developing economies restructure for growth. “This asset class also provides some inflation proof and yield protection. We remain cautious and underweight on commodities given both the current supply side issues and demand constraints.”
Vestra Wealth has an extensive and experienced regulated and unregulated fund research team. This, explains Tozer, provides the firm with the ability to generate significant alpha within its portfolios, who, when asked to define what sets Vestra apart from its peers, responds: “Consistent performance, a focus on risk-adjusted total returns underpinned by a rigorous and flexible top down and bottom up asset allocation process.”
On winning the award, Tozer says: “We are honored to have won the award, especially given the very tough trading conditions last year and the high calibre of our peers in this sector. Last year was not an easy year to manage growth portfolios. Flexibility and nimbleness were key differentiating factors amongst the investment managers.”
