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It’s all about investment returns!

Being different from your competitors is not enough for a business to flourish, we need to be better!

That is why we developed Generation Wealth Management’s – Central Investment Proposition

Our Methodology

As an independent financial adviser, we need to decide how to invest our clients’ money, whether in pension, ISA, or other investments, and how we ensure their portfolio is performing to the best of its ability. This decision will also be based upon whether to manage funds in-house, or to outsource to an organisation with specialist expertise and substantial resource.

In 2008 our Investment Director, Shai Patel, following substantial research and due diligence, concluded that employing the services of Discretionary Fund Managers (DFM) who could provide clients with excellent portfolio and risk management, was the best outcome for clients.

The principle was built around four key pillars of our Central Investment Proposition and we remain today, still passionate about these core deliverables:

  • Bespoke Active Discretionary Fund Management
  • Active Asset Allocation
  • Active Risk Management
  • Selecting Only ‘Best of Breed’ in Discretionary Fund Management.

By adhering to these principles, our aim is to identify the top performing risk adjusted performing managers, ultimately helping to reduce investment risk and provide a superior investment experience for our clients.

During the process of selecting a Discretionary Fund Manager, Shai was surprised by the breadth of inconsistencies of many managers, whether through the lack of performance, service standards or risk management, making selection of the right investment manager an extremely difficult job. Furthermore, the lack of performance transparency in the sector made it virtually impossible to assess how well your money was being managed and making your investment manager accountable for any lack of performance.

He had clearly identified an issue in the sector. Over the following years Shai developed, in partnership with a leading firm of investment analysts, a new and extraordinary way of selecting and consistently reviewing Discretionary Fund Managers and our clients’ portfolios.

Why Use Discretionary Fund Managers?

Our selected fund managers have significant resource for market, fund, and stock research, generally with a dedicated analyst in each asset sector. This enables greater due diligence to help minimise risk, identify buying opportunities and optimise returns.

They fully understand worldwide market data, helping to construct portfolios based on macro and micro-economics.

They add value by targeting themes, delivering economies of scale, reduce cost by accessing cheaper institutional investment and direct equities.

Active management on a discretionary basis will help reduce asset allocation “drift” and this will ensure clients’ portfolios remain within risk parameters.

How Do We Select A Discretionary Fund Manager?

Clearly, we needed a method of selection and regular review of not only the fund managers, but of each client’s portfolio to ensure the fund manager was still performing as expected.

We were therefore very proud that Shai’s vision became the core of our investment proposition.

There are over 200 Discretionary Fund Managers in the UK, investing for hundreds of thousands of clients, so ensuring we select the best company and the best manager within that company, is challenging. For example, not all fund managers are good in all risk categories, not all offer a truly bespoke service and of course, some of them just offer poor performance.

Bear in mind, just because a portfolio has increased in value, does not mean it is performing well. Even a poorly constructed and managed portfolio will increase in value in rising stock markets. The true test of performance is the ability to see how it fared against its competitors. Has your manager achieved a better risk adjusted return than his competition, have they given you a better return, but taken less risk, or have they taken greater risk but achieved a higher return?

To answer these questions, we are proud to have developed a sophisticated fund review service which compares fund managers on a Peer to Peer basis, allowing us to identify ‘quarterly’ who the best managers are.

The process of selection starts with comparing data from the wide selection of Discretionary Fund Managers, to ensure that we only select those that offer consistent above average performance and thorough risk management.  We undertake this review every quarter to ensure our panel (which we call ‘The Matrix’) is up to date. It is from this selection we recommend the appropriate DFM to you, based on size of fund and the risk you are willing to accept.

Once You Are A Client It Doesn’t Stop There!

Reviewing your portfolio is crucial, so we continue with the same high level of governance as we did when selecting the DFM.

Every three months our review service compares data from over 250,000 live client portfolios to your own portfolio. We call this a ‘Peer to Peer Report’ and it allows us to see if your portfolio is a top performer when compared to other portfolios in a similar risk category.

This means we can quickly react to any under-performance, identify any negative trend, and take appropriate action, including moving fund manager if necessary.

Effectively, our job is to ‘police’ the Discretionary Fund Managers for the benefits of our clients’, clearly taking active portfolio management to another level.

We are confident we are one of only a handful of Independent Financial Advisers in the UK offering this method and level of governance.

Why Generation Wealth Management?

We are of course aware that you are going to look carefully at a number of advisers and that’s why we have invested substantial time and money in developing a sophisticated approach to investment governance, thus providing a very different proposition to many competitors. Hopefully, the above detail will give you confidence in our ability and encourage you to talk to us about your own investment requirements.

Important Caveat

Of course, we will not recommend Discretionary Fund Managers to all investment clients as this route may not prove suitable, so we will undertake an initial audit of your financial position to decide what type of service and product is right for you. Please be assured we follow high levels of due diligence for all services we provide.

Please talk to us about how we can improve your investment outcome.


For us, it’s easy to demonstrate under-performance or excessive risk, that’s because we have invested significant time and money in a sophisticated performance and risk management tool, which compares data from circa 250,000 client portfolios, helping us deliver an extraordinary review service to our clients.

Regular reviews – It’s the key to success

Vijay asked us to review his retirement savings as he was concerned about existing performance and risk management. He had a number of pension funds with different pension providers and no real idea who was doing well and who wasn’t.

We conducted an analysis of his pension investments and identified no uniform investment strategy. Using our sophisticated investment and risk monitoring tool* we were able to further determine that the combined performance of his retirement arrangements were under-performing based upon the risk taken. It was agreed that we would consolidate Vijay’s pensions into one pension plan and appoint a bespoke Discretionary Fund Manager, who would invest against agreed performance and risk targets.

Once appointed, to ensure the Discretionary Fund Manager is performing consistently well, our review process compares data from 250,000 client portfolios, allowing us to compare quarterly the Discretionary Fund Manager against their ‘Peers’ within the same risk profile.

We are therefore able to report to Vijay on any concerns we may have about his Discretionary Fund Manager and, poor performance or risk management can be identified quarterly, rather than at annual reviews offered by most IFA’s.


With ongoing due diligence we are able to select the very best fund managers and provide regular review, thus ensuring our clients capital is invested correctly now, and in the future. Keeping on top of performance and risk management through regular review is the key to out-performance and ensuring our clients’ money is working hard for them.

* click here for further information on our Central Investment Proposition