Tracy Smith, investment manager at Charles Stanley Wealth Managers, explores how gardening and investment both require an eye on the future.
Gardens teach ‘patience and great watchfulness,’ believed Gertrude Jekyll, former contributor to Country Life. How do these qualities help an investment manager?
Beautiful gardens are not made overnight, and neither are investment returns. Although long-term investing does require a degree of patience, the advantages are significant. It requires courage and conviction to stay invested when markets are experiencing lows, but, if you look at where the markets are now compared with where they were in 2008/2009, it’s clear it can pay off.
Keeping on top of emerging trends, such as new developments in technology, is also important and a key part of our role is identifying these trends and anticipating their potential impact on the markets and the underlying businesses.
Gardens provide great benefits. What are the benefits of successful investment management?
Our clients often say that financial stability is priceless and there is a peace of mind that comes from knowing your investments are being looked after by an investment professional whom you trust. As well as potentially increasing your overall capital, investments can also offer income, which can be particularly important for those planning for retirement or thinking about long-term care costs. Well-managed investment portfolios can be passed down to children or grandchildren, too.
Creating a beautiful garden also requires deep knowledge across a wide range of different subjects. So, too, does successful investment management. How do you keep abreast of a variety of topics?
We are fortunate that, at Charles Stanley, we have a lot of resources and expert knowledge to draw on. In addition to our investment-strategy committee, we also have specialist analysts covering a variety of investments, such as funds and bonds, as well as stocks and shares. As investment managers, we combine the analysis and recommendations of our experts with our own research and ideas, allowing us to make the appropriate investment decisions on behalf of our clients.
Gardeners often face unforeseen problems such as frost, flood and drought; how do your investment managers face unexpected challenges in the economy?
There are many different factors that influence markets, such as the political environment, changes in economic policy, and investor sentiment. We can mitigate the effects of unforeseen market-moving events by ensuring we construct well-diversified portfolios, which means holding a variety of investments. Investing in a variety of different assets enables us to achieve our clients’ financial objectives, without exposing them to unnecessary levels of risk. Diversification provides an opportunity to achieve positive returns in one market, even when another market is generating negative returns. Although it’s always best to avoid knee-jerk reactions to movements in markets, investment professionals are in the unique position of being able to respond quickly.
Britain’s greatest gardens are the result of collaboration between owners and garden designers. How do you work with clients?
There is no one-size-fits-all approach at Charles Stanley. We have a collaborative relationship with clients, which starts with gaining a full understanding of the client’s financial situation, as well as their attitude to risk. Whether they’re investing for the purpose of growth, income or with the next generation in mind will impact how their investment portfolio is constructed. Something all our relationships have in common is that they’re all built upon trust; as an investment manager, it’s important to recognise the trusted position and the responsibility of providing stewardship of your client’s assets.
For further information about Charles Stanley Wealth Managers’ services, please call 020–3553 7281 or visit www.charles-stanley.co.uk
The value of investments can fall as well as rise. Investors may get back less than invested.
Charles Stanley Wealth Managers is a trading name of Charles Stanley & Co. Limited, which is authorised and regulated by the Financial Conduct Authority. A member of the London Stock Exchange and a wholly owned subsidiary of Charles Stanley Group PLC.
