We are regularly contacted by a number of foreign nationals residing in the UK, or those planning to move to or out of the UK, who are unsure of how to start their investment journey. They want to ensure that they are optimising their tax efficiency and have an appropriate investment portfolio which meets their requirements and often believe their residency or domicile status prohibits them from having an investment portfolio in the UK. They are concerned about tax penalties in the country of their domicile, triggered by the investment growth or income in the UK.
Fortunately, at Partners Wealth Management, not only can we help foreign nationals setup a tax-efficient, well-managed investment portfolio using innovative marketing leading strategies, but also take into account their views on environmental, social and governance (ESG) matters.
ESG portfolios are designed not only for profit, but also to take into consideration people and their aspirations for the planet. 1A study from Morgan Stanley in 2021 suggested that companies that factor in these considerations often have better performance compared to their more traditionally minded peers. To summarise, the generation of profit does not need to be at the expense of good stable, well-functioning social, environmental and economic systems. At Partners Wealth Management, we have been leading the conversation on sustainable investing. The PWM Green Matrix, our own independent sustainable methodology, cuts through the ‘green’ investment jungle. It assists us in meeting the individual requirements of our clients to create their most appropriate sustainable portfolio. We have received four awards and nominations in recognition of our unique work in this area, including International Investment’s Excellence in Sustainability award and winner of Capital Finance International’s Best Sustainable Financial Planning Advisers – UK award.
We have now gone a step further for our international clients and approached the UK investment companies, researched for our PWM Green Matrix, about their offering for international clients. In most cases, ESG investing is available for larger amounts via bespoke portfolios, starting at £500,000. Most investment houses can build a discretionary portfolio considering a client’s views on sustainability, and custody them offshore with a non-UK situs, denominated in GBP, USD, EUR or CHF.
The challenge begins when a client who is not domiciled in the UK wants to invest less than £500,000 in a portfolio with ESG considerations in mind. Our USP is our ability to blend the best UK dedicated fund managers. There are a handful of investment managers in the UK that offer this service. We have now worked with a number of them, including those who offer model portfolios in the ESG space, accessible for both regular and lump sum investments. We have extended our sustainable investment proposition and it is now available to our offshore clients.
These models are available across different risk profiles (Cautious, Balanced, Adventurous, and All Equity) and can be accessed in GBP, EUR and USD. Both passive and active management are on offer. In terms of allocations, the key difference is that the offshore portfolios do not have a UK equity bias.
We’re here to help
We can help our international clients setup tax-efficient investment portfolios that not only meet their personal investment objectives, but also have a positive impact on the environment and society. We would be happy to have a discussion with you to consider your requirements alongside the investment market so that we can review the options available to you.
If you would like further information, please do get in touch with your usual Partners Wealth Management adviser.
The contents of the article have been prepared solely for information purposes. The article contains information on financial products and services and such information is designed for and addressed solely to individuals seeking generic industry information. Past performance is no guide to future returns. The above content does not represent a personal recommendation. Taxation depends on your individual circumstances and may be subject to future change.
Source 1: Morgan Stanley Sustainable Reality Report Reveals U.S. Sustainable Funds Outperformed Traditional Funds by 4.3 Percentage Points in 2020.