Most Popular Questions

Questions clients ask about us and how to get help

What is WAM service?

The WAM service is a discretionary portfolio management service that offers three investment funds, each with a distinct investment objective. As an investor you will purchase units in the fund(s) which in turn invest in a broad range of direct US stocks and bonds as well as a variety of collective investment funds. The WAM service will provide you with an individually managed account, which your investment manager would tailor to your investment objectives.

What are the benefits of this kind of approach?

This is a unitised, or pooled, approach, which is often more cost effective for smaller portfolios, with the added benefit that, regardless of portfolio size, you will be invested in a portfolio that is diversified which can help reduce volatility. Investing in a fund has the added benefit of being unencumbered by individual tax constraints; often an individually tailored portfolio might have a large capital gain which can reduce the appetite for selling a stock. This scenario does not exist within a fund.
Finally, the WAM service is distinct from other unitised discretionary services as it invests primarily into direct stocks and bonds, in addition to third party funds; whereas many other services exclusively invest in funds. This ensures that the investors within the WAM service benefit from the long-standing experience of direct investing.

Who is the WAM service for?

Thanks to the diversification it offers, the WAM service can be particularly attractive to those investors who have smaller portfolios, where it might normally be more difficult to achieve a diversified range of investments. Additionally, a unitised approach can often be more cost effective than the tailored approach due to the pooling of all the investors’ assets, which can result in achieving an economy of scale, increasing the attraction to portfolios that might not be large enough to warrant an individually tailored service. The WAM service could therefore be appropriate for, amongst others, your children’s investment portfolios, including ISAs and other long term investment portfolios, which you wish to be managed in line with a minimal risk profile.

Can I invest my ISA in the WAM?

Yes you can. In fact we believe the WAM might be very appropriate for those clients who have their savings in an ISA. Equally, if you have a JISA for your children or grandchildren, WAM offers an execution only JISA service which invests exclusively in the WAM Growth fund.

How do I decide which of the three funds to invest in?

The WAM service is a discretionary portfolio management service therefore, as your investment manager has discretion over your account, he or she will select the most appropriate fund(s) to invest in, to meet your specific investment objectives.

Is there someone I will be able to talk to if I invest in the WAM?

The hallmark of WAM success to date is our unstinting focus on providing a quality client service, which is achieved by placing an investment manager as the primary point of contact.

If I’m already a client, will I have to deal with a new investment manager for these accounts?

No – continuity is very important to us as we seek to develop long term relationships with our clients. You and your family will maintain the same investment manager regardless of the service you are invested in, unless you have requested otherwise.

Can I view my account online?

Online reporting is a key aspect of this service. We send you quarterly periodic statements, but should you wish to view your holdings or an interim valuation, our secure client website provides a comprehensive breakdown of the current valuation of your portfolio. These are available via our secure client website.

Will I be able to see the underlying holdings in the fund?

Yes. Although your investment purchases units in a fund, we have developed an online functionality which allows you to view the underlying holdings of your portfolio. This can be accessed at www.wam-limited.com.

How are the funds managed?

The WAM funds are managed by an in-house fund manager via a consistent and disciplined approach. By drawing upon the wider, long-established investment expertise honed over the 20 years since the firm’s foundation, the funds are focused on delivering superior, risk-adjusted returns over the long term.

The manager uses a dynamic approach to asset allocation, using the view of the in-house asset allocation committee as a guide, while drawing inspiration for investment ideas from the core stock list, which is monitored by the in-house research team.
The funds, generally unrestricted by sector and market capitalisation, will typically invest via direct equities for US exposure and direct bonds for fixed interest exposure. This draws upon our core expertise whilst helping to keep costs down, as direct investments are often cheaper than funds.

To access more specialist sectors, such as infrastructure or absolute return, or geographical exposure to the UK or Japan, for example, the manager will use our preferred investment funds, across both the passive and active fund universes.

Why do you use direct US equities?

The WAM funds are distinct from other discretionary portfolio management services that adopt a unitised approach, such as some multi-asset funds, as they do not solely invest in third party collective investment funds. Investing in direct US equities and bonds has the advantage of keeping costs down, as investing directly into stocks or bonds can often be cheaper than investing via a third party fund. For exposure to geographical markets and niche asset classes, such as infrastructure and commodities, we do use collective investment funds as it is often the easiest way to gain access in addition to the benefits of the specialist expertise of these managers.

How do I sign up?

Contact your investment manager, or if you don’t have one yet, register at www.wam-limited.com and we will assign an investment manager to you.