Empowering clients to be better stewards of their assets.
Stewardship: The careful and responsible management of something entrusted to one’s care.
Investment professionals are called to be stewards of assets. They need a supportive ecosystem within which they can work for your best interests. The system can either empower them to perform their role as stewards or leave them feeling conflicted as sometimes sub-optimal solutions are delivered.
In the traditional wealth management model, significant conflicts of interest result in a less than ideal outcome both for investors and advisers.
Our conviction is the key lies in the Independent Wealth Manager Model where clients and investment professionals interests are aligned.
Traditional Model presents various conflicts of interest
- ‘Negative pressure’ – Bank revenue vs interests of clients.
- Demands of large listed institutions – quarterly reporting, performance targets etc.
- Banks as the ultimate paymaster.
- Excessive risk/leverage taken.
- Sale of products based on ‘margins/revenue’ as opposed to
- Increased controls resulting in more time taken for
- Investment professional burnt out – turnover.
- Bankers Musical-chairs.
Re-alignment of interests
- Client as paymaster – significantly alters behavior of investment professionals.
- Independent wealth managers are entrepreneurs, running their own businesses for the long term.
Alignment of interests is key
- Ability to look across platforms and products available in the industry.
- Best in breed investment and wealth management opportunities (Investment merit, costs).
- Ability to leverage and synthesize views across various private banks and 3rd party research and fund managers for our clients benefit.
Seasoned multi-assets investment expertise.
Unlike most wealth managers, Covenant Capital has a dedicated investment team whose main focus is to conduct research, form in-house views, and manage our clients’ portfolios.
The value propositions of our dedicated investment team:
1. Seasoned investment professionals with an average of 18 years of experience in the financial services industry, the majority of which were in investment research and portfolio management roles. This means that we do conduct primary research in addition to rely on banks to form our own investment opinions.
2. Multi-Asset Class approach to investing, meaning that we look across all asset classes including equities, fixed income, commodities, derivatives and alternatives. This ensures that we are able to diversify and maximize the profit potential of our portfolios. It also allows us to better tailor portfolios according to a desired risk appetite and different macro environment.
3. Active Management of Portfolios by actual ex-fund managers from large financial institutions such as Citigroup, Overseas Union Bank, BNP Paribas Asset Management, Singapore MRT Limited and Western Asset Management.